Medicare Premiums: Rules For Higher-Income Beneficiaries 
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

user: I'd like to learn more about medicare premiums, please.

assistant: Of course. 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 my income isn't greater than the limits stated on your website?

assistant: In that case this law does not apply to you.

user: And what if I don't get monthly payments at all?

assistant: Then you'll get a separate bill from another federal agency, such as the Centers for Medicare & Medicaid Services or the Railroad Retirement Board.

user: What if my income has become less due to the current crisis?

assistant: Has your income gone down due to any situation, and does the change make a difference in the income level we consider?

user: No, not really.

user: One final question: do I need to file an appeal if I'm asking for a new decision, because I now earn less?

assistant: You don't need to file an appeal if you're requesting a new decision because you experienced one of the events listed and, it made your income go down, or if you've shown us the information we used is wrong.