Your Medicare Part B bill will go up about 2.7% in 2021, with the rate of increase varying slightly depending on your income level.

Most Part B users will pay $148.50 a month next year, up from $144.60 in 2020. This is the standard premium, paid by those whose tax returns in 2019 were $88,000 or less for an individual tax return (or married but filing a separate return) or $176,000 for a joint return. Last year’s base figures were $87,000 individual/$174,000 joint return.

Those who earned more pay an adjusted rate for Part B coverage by adding an Income Related Monthly Adjustment Amount (IRMAA) to the standard premium. The breakdown of those rates, per Medicare.gov, is as follows (Note: as with the standard premium levels, these income levels have risen slightly since 2020):

• Those with income from $88,001 to $111,000 on an individual return or from $176,001 to $222,000 on a joint return will pay $207.90 per month, up from $202.40 in this bracket in 2020.
• Those with income from $111,001 to $138,000 on an individual return or from $222,001 to $276,000 on a joint return will pay $297.00 per month, up from $289.20 in this bracket in 2020.
• Those with income from $138,001 to $165,000 on an individual return or from $276,001 to $330,000 on a joint return will pay $386.10 per month, up from $376.00 in this bracket in 2020.
• Those with income from $165,001 to $500,000 on an individual return, or $88,001 to $412,000 when married but filing a separate tax return, or from $330,001 to $750,000 on a joint return will pay $475.20 per month, up from $462.70 in this bracket in 2020.
• Those with income above $500,000 on an individual return, or above $412,000 when married but filing a separate tax return, or above $750,000 on a joint return will pay $504.90 per month, up from $491.60 in this bracket in 2020.

[MOAA’s TRICARE GUIDE: Medicare and TRICARE at 65 and Beyond]

The increase is at a lower rate this year than last – the upper bracket jumped $30 per month from 2019 to 2020, for example, but will rise a little more than $13 from 2020 to 2021. This year’s continuing resolution, H.R. 8337, included language that limited the increase.

Income Adjustment

If your income figures from 2019 don’t reflect your current financial situation, especially in the event of a retirement, a divorce, or other life-changing events, you may qualify for a lower rate. You can file Form SSA-44, Medicare Income-Related Monthly Adjustment Amount – Life Changing Event, or visit your local Social Security office to request an adjustment.

Qualifying events include:

• Marriage, divorce/annulment, or death of a spouse.
• Work stoppage or reduction.
• Loss of income-producing property.
• Loss of pension income.
• Employer settlement payment.

For more information, call the Social Security Administration (SSA) at 1-800-772-1213.

MOAA members can email questions about Medicare or other benefits programs to our benefits counselors. More information on Medicare is available at this link.