Part B & D Premium Increases
The standard Part B premium is $121.80 (2016). Starting in 2007, there is be a premium surcharge for higher income individuals. This is called the Income Related Monthly Adjustment Amount (IRMAA). There is an increase in your Part B premium and if you have drug coverage, there is one for Part D too.
The surcharge for 2016 will be based upon a person's 2014 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 2016.
2016 Part B & D Surcharge Chart
Married Surcharge Chart:
| 2014 Modified Adjusted Gross Income | Monthly Premium Surcharge | |
| More than... | But Less than... | |
| $170,000 | $214,000 | $170.50 |
| $214,000 | $320,000 | $243.60 |
| $320,000 | $428,000 | $316.70 |
| $428,000 | $389.80 | |
Single Surcharge Chart:
| 2014 Modified Adjusted Gross Income | Monthly Premium Surcharge | |
| More than... | But Less than... | |
| $85,000 | $107,000 | $170.50 |
| $107,000 | $160,000 | $243.60 |
| $160,000 | $214,000 | $316.70 |
| $214,000 | $389.80 | |
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 may change your Part B premium accordingly. Do this as soon as you are aware of the change in income. As your income changes, your Part B Premium is adjusted automatically by social security. Just be aware of the two year look-back on income.
