The law requires an adjustment to your monthly Medicare Part B medical insurance and Medicare prescription drug coverage premiums. This affects less than five percent of people with Medicare. Most people don t pay higher premiums. 

If You Have a Higher Income 
If you have higher income , you ll pay an additional premium amount for Medicare Part B and Medicare prescription drug coverage. We call the additional amount the income - related monthly adjustment amount. Here s how it works : Part B helps pay for your doctors services and outpatient care. It also covers other medical services, such as physical and occupational therapy, and some home health care. For most beneficiaries , the government pays a substantial portion about 75 percent of the Part B premium , and the beneficiary pays the remaining 25 percent. If we determine you re a higher - income beneficiary , you ll pay a larger percentage of the total cost of Part B based on the income you normally report to the Internal Revenue Service IRS. You ll pay monthly Part B premiums equal to 35 , 50 , 65 , 80, or 85 percent of the total cost, depending on what you report to the IRS. Medicare prescription drug coverage helps pay for your prescription drugs. For most beneficiaries , the government pays a major portion of the total costs for this coverage , and the beneficiary pays the rest. Prescription drug plan costs vary depending on the plan, and whether you get the Extra Help, also known as the subsidy, with your portion of the Medicare prescription drug coverage costs. If you re a higher - income beneficiary with Medicare prescription drug coverage , you ll pay monthly premiums plus an additional amount, which is based on what you report to the IRS. Because individual plan premiums vary , the law specifies that the amount is determined using a base premium. We tie the additional amount you pay to the base beneficiary premium, not your own premium amount. If you re a higher - income beneficiary , we deduct this a

user: I'm a bit confused and could use some guidance when it comes to my tax return. Can you help me?

assistant: Gladly. Do you wish to determine your 2020 income-related monthly adjustment amounts?

user: No, I wanted to know something else.

assistant: Are we using your 2017 tax year data?

user: Yes, you are.

assistant: If you filed a return for tax year 2018 or did not need to file a tax return for tax year 2018, call us or visit any local Social Security office. We'll update our records.

user: I see. Do my medicare premiums need to be adjusted?

assistant: Yes. The law requires an adjustment to your monthly Medicare Part B medical insurance and Medicare prescription drug coverage premiums. This affects less than five percent of people with Medicare. Most people don t pay higher premiums.

user: What if I earn a lot less now? I mean, my income has significantly dropped due to the current crisis.

assistant: In that case you should contact us to explain that you have new information and may need a new decision about your income-related monthly adjustment amount.

user: I'll put that on my list. So what should I do if I have a limited income?

assistant: Well, you may be able to get Extra Help with the costs monthly premiums, annual deductibles, and prescription co-payments related to Medicare prescription drug coverage. Visit "Extra help with your Medicare prescription drug costs" on our website for more information.