Part B Premium Increases
Starting in 2007, there will be a premium surcharge for higher income individuals. The total increase will be phased in between 2007 and 2009. The surcharge for 2008 will be based upon a person's 2006 Adjust Gross Income (AGI). To this figure, you add any tax-exempt interest, EE bond interest used for educational purposes and any excluded foreign earned income. This gives you a Modified Adjusted Gross Income (MAGI) . The premium surcharge increases as the amount of your MAGI increases. The following tables summarize the surcharge amounts for 2008.
2008 Part B Surcharge Chart
Married Surcharge Chart:
| 2006 Modified Adjusted Gross Income | Monthly Premium Surcharge | |
| More than... | But Less than... | |
| $164,000 | $204,000 | $122.20 |
| $204,000 | $306,000 | $160.90 |
| $306,000 | $410,000 | $199.70 |
| $410,000 | $238.40 | |
Single Surcharge Chart:
| 2006 Modified Adjusted Gross Income | Monthly Premium Surcharge | |
| More than... | But Less than... | |
| $82,000 | $102,000 | $122.20 |
| $102,000 | $153,000 | $160.90 |
| $153,000 | $205,000 | $199.70 |
| $205,000 | $238.40 | |
Part B Premiums
The income levels will be adjusted each year for inflation. You will have an opportunity to dispute the surcharge and use income from a later year if your circumstances change due to a major event such as death of your spouse, divorce, retirement or a significant cutback in hours worked.
If you can drop down a level, then take your income or tax information to your local social security office and meet with them. They will change your Part B premium accordingly. Do this as soon as you are aware of the change of income.
