Some won’t pay more for their Medicare Part B premium in 2010

BY IRENE CARD AND BETSY CHANDLER

NEWJERSEYNEWSROOM.COM

YOUR HEALTH INSURANCE

A few weeks ago I wrote an article about the changes in Medicare for 2010 and mentioned that the Part B (medical expenses) premium will be going up from $96.40 to $110.50. The Center for Medicare Services has released additional information about this premium that is deducted from your social security checks. In most cases, your premium will remain the same as it was in 2009 — $96.40 even though the standard Part B premium will be $110.50 monthly. This sounds like double talk; you certainly have to take a double look at it.

Most people have their Part B premium deducted from their monthly social security check. In 2010, social security benefits won't include a cost-of-living adjustment which means your social security check will not see any increase. The Social Security Act protects most people from having a decrease in their social security benefits from one year to the next because of an increase in the Part B premium. This means that most people who have the Part B premium deducted from their social security check will continue to pay $96.40 per month.

So, who will pay $110.50 per month? People who are not yet eligible for social security benefits and get billed quarterly for their premium will pay $110.50 per month. People who become eligible for Part B beginning January 1, 2010, or later, (new enrollees) will pay the increased premium and people with incomes above certain amounts will pay increased premiums based on their income.

If you file an individual tax return and your income is $85,001 to $107,000 you will pay $154.70 per month. If you file a joint tax return and your joint income is between $170,001 and $214,000 you will each pay $157.40 per month.

If you file an individual tax return and your income is $107,001 to $160,000 your premium will be $221.00 and if you file jointly and your income is between $214,001 and $320,000, you will each pay $221.00.

The next income level will bring your premium up to $287.30 per month. If you file a single tax return and your income is between $ 160,001 and $214,000 you will pay $287.30 per month. Married couples will pay this amount if their income is between $320,001 and $428,000.

Based on income the chart goes as high as a monthly premium of $353.60. This applies to you if your single income is above $214,000 and if you file jointly and your income is above $428,000.

Both Medicare and health insurance for those less than 65 years of age seems to be changing like the weather. We will continue to do our best to keep you abreast of these changes.

Irene Card & Betsy Chandler are licensed insurance professionals working at MIC Insurance Services, a health insurance services company. If you have questions relative to this column or other related topics, we invite you to call (973) 492-2828, or visit our web site at www.micinsurance.com.