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Medicare Part B and D Premiums for 2014

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Even though other retirement-related items increased for 2014, such as the taxable income limit for Social Security tax ($117,000, up $3,300), the earnings limits for pre-Full Retirement Age Social Security benefits ($15,480 before FRA year, $41,400 during FRA year), and the COLA for Social Security benefits (+1.5%), the premium for Medicare Part B coverage remained the same for 2014, at $104.90 per month.

However, if your income in 2012 was above $85,000 for single filers or $170,000 for married filers, you will have to pay more for your Medicare Part B insurance, but it’s the same increase as in 2013.  Medicare Part D coverage for upper income folks will rise slightly.  The maximum increase for both Part B and Part D tops out at $300.10 per month, for a total premium of $405 per month.

This income amount is actually your Modified Adjusted Gross Income, which is equal to your regular AGI (bottom line on the first page of your 1040 tax return) plus tax-exempt interest, foreign earned income, and Series EE US Savings Bonds that were used for education (and which would otherwise be non-taxed).

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3 Comments

  1. […] Medicare Premiums for 2014 from Financial Ducks in a Row […]

  2. Bill CasonNo Gravatar says:

    In your post it says “However, if your income in 2012 …”. Is that a typo or is it 2013? Also a secondary question. If one retires in say 2014 and has little or no income would the earnings from 2013 cause a escalation in Medicare costs even when income has been greatly reduced? Doesn’t seem quite right. Is there anyway to address this?

    1. jblankenshipNo Gravatar says:

      Bill, the post is correct. Income for the purposes of calculating Medicare Part B and D premiums is two-years in arrears, because this is the most recent tax return that SS has available from IRS. There are ways to resolve this, or rather, exceptions that you can look to. See this page about Medicare Part B costs for additional information.

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