Medicare is a vital program for millions of Americans, and it’s important to understand the income limits for Medicare in 2022. In this blog post, we will discuss the latest information on income limits for Medicare and how they may impact your eligibility for coverage. We will also provide some tips on how to maximize your benefits under Medicare. So if you’re looking to learn more about the income limits for Medicare in 2022, then be sure to read on!
Income Limits Per Medicare
There is no income limit for Medicare. But there is a threshold where you might have to pay more for your Medicare coverage.
In 2022, Medicare beneficiaries with a modified adjusted gross income above $91,000 may have an income-related monthly adjustment (IRMAA) added to their Medicare Part B premiums.
For couples who file a joint tax return, that threshold is $182,000 per year.
Note: that the government looks at your income for two years before determining the IRMAA amount.
An IRMAA is a surcharge for those Medicare beneficiaries with a higher gross income.
Medicare Premiums by Type!
It’s important to note that most Medicare beneficiaries get Medicare Part A for free. Generally, if you (or your spouse) paid Medicare taxes for 30-39 quarters you will not have to pay for your Medicare Part A coverage.
If you have been paying Medicare taxes for less than 39 quarters, the standard Part A premium is $274 for 2022.
if you have been paying Medicare taxes for less than 30 quarters, the standard Part A premium is $499 for 2022.
The standard Medicare Part B premium amount is $170.10 for 2022. However, if you are a Medicare beneficiary with an annual modified adjusted gross income above the IRMA threshold, you will have to pay more for your Medicare Part B coverage.
What Kind of Income is Used to Determine Medicare Premiums?
Your modified adjusted gross income as reported 2 years ago on your IRS tax returns are what is used to determine your Medicare Part B premium. You also may see modified adjusted gross income as MAGI.
Your MAGI is determined after taking certain allowable deductions and tax penalties into account. For many taxpayers, your MAGI and your adjusted gross income (AGI) are the same.
Your MAGI includes any income you earned during the year including:
- Alimony
- Business income
- Capital gains
- Dividends
- Farm income
- Rental and royalty income
- Retirement income
- Tips
- Wages
Does My Premium Increase If My Income Increases Once I Have Medicare?
No, your Medicare premiums can’t increase just because your income has increased.
But, if you had a decrease in your income or filed an extension on your taxes, and then your income increases during the next tax-filing season, you will have to pay the higher Part B premium for that year.
What If I Don’t Have My Tax Returns?
The Social Security Administration will look at your most recent tax return on file to determine your MAGI. If you haven’t filed a tax return, you can complete IRS Form 450-T to provide information about your income. If you need help filing your taxes or completing the IRS Form 450-T, you can contact the IRS or a tax professional. You also can call Social Security at 1-800-772-1213 and ask for a “Notice of Estimated Medicare Premiums” form.
When Will I Be Notified of My New Medicare Part B Premium?
You will be notified of your new Medicare Part B premium in three months before the start of the next calendar year. For example, if you’re notified in October 2020 that your Part B premium will increase for 2021, you’ll pay the higher premium from January to December 2021.
If you have a Medicare Advantage Plan or other Medicare health plan, you will get information about your premiums from your plan.
What If I Can’t Afford My Higher Medicare Part B Premium?
If you can’t afford your higher Medicare Part B premium, you have a few options.
You can:
- Apply for a “hardship exemption” from the Social Security Administration
- Have your premiums deducted from your Social Security benefits
- Enroll in a Medicare Savings Program
- Get help from your state Medicaid program
- Contact your local Area Agency on Aging for assistance
- Talk to a financial counselor or benefits advisor
If you have questions about how to lower your Medicare premiums, you can contact the Medicare helpline.
Knowing how to tackle your finances the right way, you need to know what all your options look like. That is where we can help make an impact. There are several programs you can look at to help adjust the IRMAA amount added to your Part B Premium. Give us a call and we can discuss those options.
