The Centers for Medicare & Medicaid Services has announced Medicare Part B premiums for 2019, and the base premium increases modestly from $134 to $135.50 a month. Yet high earners are still getting used to a big bump in income-related surcharges that kicked in this year. And the very highest earners are facing another big increase for 2019. That means that the wealthiest senior couples will be paying over $11,000 a year in Medicare Part B premiums. Part B (the base and the surcharge) covers doctors’ and outpatient services.
The CMS announcement comes just after yesterday’s Social Security Administration’s COLA announcement: a 2.8% cost of living adjustment for 2019. The average Social Security benefit for a retired worker will rise by $39 a month to $1,461 in 2019. The small increase in Part B premiums mean most retirees will get the benefit of the Social Security COLA (Part B premiums are deducted from monthly Social Security checks).
While most Medicare recipients will pay the new $135.50 standard monthly premium, an estimated 2 million (3.5%) will pay less because of a "hold harmless" provision that limits certain beneficiaries' increase in their Part B premium to be no greater than the increase in their Social Security benefits.
Then there's the 5% of Medicare recipients who have to pay income-related surcharges. The graduated surcharges for high-income seniors kick in for singles with modified adjusted gross income of more than $85,000 and for couples with a MAGI of more than $170,000. An individual earning more than $85,000, but less than or equal to $107,000, will pay $189.60 in total a month for Part B premiums in 2019, including a $54.10 surcharge. That’s barely up from 2018: $187.50 total in a month, including a $53.50 surcharge.
By comparison, the wealthiest retirees – singles with $500,000 of income and couples with $750,000 of income -- will see a 10.3% increase in their income-related surcharge from $294.60 in 2018 (when they were part of the greater-than-$160,000/$320,000 group) to $325 in 2019. Total premiums for this group will be $460.50 a month in 2019 ($11,052 a year).
The income-related premium surcharges, including the hit to the new $500,000-plus group, apply to Part D premiums for drug coverage too.
Here are the official numbers from the CMS release, what you'll pay per month for 2019, depending on your income, for individuals and couples filing a joint tax return (the 2019 income-related surcharges are based on AGI reported on 2017 tax returns):
| Individual return with income: | Joint tax return with income: | Income-related surcharge | Total monthly premium amount |
| < or = $85,000 | < or = $170,000 | $0.00 | $135.50 |
| > $85,000 and < or = $107,000 | > $170,000 and < or = $214,000 | $54.10 | $189.60 |
| > $107,000 and < or = $133,500 | > $214,000 and < or = $267,000 | $135.40 | $270.90 |
| > $133,500 and < or = $160,000 | > $267,000 and < or = $320,000 | $216.70 | $352.20 |
| $160,000 and < $500,000 | > $320,000 and < $750,000 | $297.90 | $433.40 |
| $500,000 or more | $750,000 or more | $325 | $460.50 |
