Medicare Premium Amounts for 2008

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Applying for Medicare

Enrolling in Part A - you will automatically get Medicare Part A starting the first day of the month your turn 65. If you are under 65 and disabled, you will automatically get Medicare Part A after you get Social Security disability or Railroad Retirement benefit for 24 months.

Enrolling in Part B - enrolling in Part B is your choice. If you already get Social Security or Railroad Retirement benefits, you are automatically enrolled in Part B starting the first day of the month you turn age 65. If you are under age 65 and disabled, you are automatically enrolled in Part B after you get Social Security or Railroad benefits for 24 months. If you don't want Medicare Part B, follow the instructions that come with your Medicare card.

Part A: (Hospital Insurance) Premium

• Most people do not pay a monthly Part A premium because they or a spouse has 40 or more quarters of Medicare covered employment.

•   $423.00 per month (Note: This premium is paid only by individuals who are not otherwise eligible for premium-free hospital insurance and have less than 30 quarters of Medicare covered employment).

• The Part A premium is $233.00 for those individuals having 30-39 quarters of Medicare covered employment.

Part B: (Medical Insurance) Premium

• $96.40 per month. The cost of Part B may go up 10% for each 12-month period that you could have had Part B but didn't sign up for it, excepts in special cases.

Most people will pay the standard monthly Part B premium of $96.40 in 2008. Some people will pay a higher premium based on their modified adjusted gross income.

Your monthly premium will be higher if you file an individual tax return and your annual income is more than $82,000, or if you are married (file a joint tax return) and your annual income is more than $164,000.

If you meet these criteria, Social Security will use the income reported two years ago on your IRS income tax return to determine your premium (if unavailable, SSA will use income from three years ago).  For example, the income reported on your 2006 tax return will be used to determine your monthly Part B premium in 2008. If your income has decreased since 2006, you can ask that the income from a more recent tax year be used to determine your premium, but you must meet certain criteria.

At the end of each year, Social Security will send you a letter if your Part B premium will increase based on the level of your income and to tell you what you can do if you disagree. For more information about Part B premiums based on income, call Social Security at 1-800-772-1213.

The chart below shows the Part B monthly premium amounts based on income. These amounts change each year. There may be a late-enrollment penalty. Here are the rules:

 If You Are Married but You File a Separate Tax Return From Your Spouse

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Senior Care Concepts, 2008