The 2016 Medicare costs have been published by Social Security. Retirees on Medicare should have received a letter from Social Security indicating what you will be paying for Medicare in 2016 based on your 2014 income. The chart below indicates those ‘premiums.’ If you are only paying the base amount – there is no Part D cost. However, if your income level exceeds the base amount – you will be paying a Part D premium. Remember, if you are getting “State Paid” health benefits in retirement, you will be able to apply for reimbursement for the Part B excess premium as well as the Part D premium. Those letters are normally mailed out from the Division Of Pensions in February.
| SOCIAL SECURITY – 2015/16 | ||
| Maximum Taxable Earnings | 2014 | 2015/16 |
| Social Security (Only) | $117,000 | $118,500 |
| Medicare | No limit | No limit |
| Retirement Earnings Test Amounts | ||
| Under Full Retirement Age (FRA) | $15,480/ Year | $15,720/ Year |
| $1,290/ month | $1,310/ month | |
| No limit Upon Attainment of Full Retirement Age (FRA) | ||
| MEDICARE COSTS – 2016
(part b deductible $166) PART B AND D HIGHER INCOME MONTHLY PREMIUMS |
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| If Yearly Income in 2014 | |||
| File Individual Tax return | File Joint Tax Return | You Pay Part B | You Pay Part D |
| $85K or less | $170K or less | $121.80 | |
| $85K – $107K | $170K – $214K | $170.50 | $12.70 |
| $107K – $160K | $214K – $320K | $243.60 | $32.80 |
| $160K – $214K | $320K – $428K | $316.70 | $52.30 |
| $214K and above | $428K – and above | $389.80 | $72.90 |