Rules For Higher-Income Beneficiaries
People who have higher incomes are required by law to pay more on Medicare Part B and Medicare Prescription Drugs. This affects a little less than five percent of the population.
Essentially, five in every one hundred people have to pay extra for medical insurance. This additional cost for higher income families is called the income-related monthly adjustment amount.
How Does This Affect You?
Medicare Part B helps to pay for:
- Doctor Services
- Outpatient Care
- Occupational Therapy
- Physical Therapy
- Can help to cover some health care plans
For most people, the government pays for 75 percent of the insurance costs, with the patient paying the remaining 25 percent.
Unfortunately, this amount changes based upon their income report to the Internal Revenue Service. The IRS will receive the report and if the person hits a certain bracket, then their insurance cost could change.
Instead of paying 25 percent, higher income beneficiaries could end up paying 35, 50, 65, or even 80 percent of their total medical costs. These amounts are the same for Medicare Prescription Drug Coverage. The amount you have to pay is based upon how much income you make. When people are charged the extra amount, the money is payed through centers for Medicare such as Medical Services or the Railroad Retirement Board.
Americans with Medicare Part B and Medicare Prescription Drugs services for their medical insurance could face higher costs if they have a high income.