Retirement & Financial Planning Report

High-income seniors pay more for Medicare Part B, which covers doctor visits, outpatient care, and so on. Many seniors pay $96.40 a month for Medicare Part B, or $1,152 a year. High income Medicare enrollees pay as much as $369.10 a month, or $4,429 a year for Part B.

The same high income enrollees who pay extra premiums for Part B also pay a surcharge for Medicare Part D, which covers prescription drugs. Most seniors pay the going rate for the Part D plan they choose. However, enrollees with a high income pay that going rate plus as much as $69.10 a month extra, for a total of $829 a year.

Who pays the additional costs?

* With income over $85,000, single taxpayers pay the extra costs. For married couples filing joint tax returns, the additional fees kick in with $170,000 of income.

* As your income increases, so does the amount you’ll pay. With income over $214,000 ($428,000 on a joint return), Medicare enrollees pay the maximum $369.10 a month for Part B and $69.10 for Part D.

For this purpose, tax-exempt income from municipal bonds and bond funds is included in your income. If your Medicare premiums are higher than you’d like, consider enrolling in a Medicare Advantage plan so you can avoid buying a Medigap policy and a Part D drug plan.