medicare part b icon

Medicare Part B (Medical Insurance)

Some people will automatically get Medicare Part B, and some will need to sign up for Part B. If you don’t sign up for Medicare Part B when you’re first eligible, you may have to pay a late enrollment penalty.

 

You pay the Medicare Part B premium each month. Most people will pay the standard premium amount, which was $121.80 in 2016.

Some People May Pay A Higher Medicare Part B Premium

If your modified adjusted gross income is above a certain amount ($85,000 if you file individually or $170,000 if you’re married and file jointly), you may pay more. Your MAGI is your adjusted gross income plus your tax exempt interest income. This doesn’t affect everyone. Most people won’t have to pay a higher Medicare Part B amount. 

 

Each year, Social Security will tell you if you have to pay more than the standard premium. The amount you pay can change each year depending on your income. If you have to pay a higher amount for your Medicare Part B premium and you disagree (for example, if your income goes down), contact Social Security.

 

What's The Medicare Part B Late Enrollment Penalty?

If you sign up late for Medicare Part B, you will have to pay a late enrollment penalty for as long as you have Part B. Your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but did not sign up. If you’re allowed to sign up for Part B during a Medicare Special Enrollment Period, you usually don’t pay a late enrollment penalty.

 

Example: Mr. Smith’s Initial Enrollment Period ended September 30, 2012. He waited to sign up for Part B until March 2015 during the General Enrollment Period. His Part B premium penalty is 20%. (Even though Mr. Smith waited a total of 30 months to sign up, this included only 2 full 12-month periods.) He’ll have to pay this penalty for as long as he has Part B.

 

What Does Medicare Part B Cover?

Medicare Part B helps cover medically necessary doctors’ services, outpatient care, home health services, durable medical equipment, and other medical services. Part B also covers many preventive services. You can find out if you have Part B by looking at your red, white, and blue Medicare card.

 

You must pay the annual Medicare Part B deductible ($166 in 2016) before Medicare begins to pay its share. Then, after your deductible is met, you typically pay 20% of the Medicare-approved amount of the service, if provider accepts assignment. Remember, there is no yearly out-of-pocket limit for what you pay.

 

Generally, preventive services are covered 100% if you get the services from a provider who accepts assignment. However, for some preventive services, you may have to pay a deductible, coinsurance, or both. These costs may also apply if you get a preventive service in the same visit as a non-preventive service.

medicare part b icon

Medicare Part B (Medical Insurance)

Some people will automatically get Medicare Part B, and some will need to sign up for Part B. If you don’t sign up for Medicare Part B when you’re first eligible, you may have to pay a late enrollment penalty.

 

You pay the Medicare Part B premium each month. Most people will pay the standard premium amount, which was $121.80 in 2016.

Some People May Pay A Higher Medicare Part B Premium

If your modified adjusted gross income is above a certain amount ($85,000 if you file individually or $170,000 if you’re married and file jointly), you may pay more. Your MAGI is your adjusted gross income plus your tax exempt interest income. This doesn’t affect everyone. Most people won’t have to pay a higher Medicare Part B amount. 

 

Each year, Social Security will tell you if you have to pay more than the standard premium. The amount you pay can change each year depending on your income. If you have to pay a higher amount for your Medicare Part B premium and you disagree (for example, if your income goes down), contact Social Security.

 

What's The Medicare Part B Late Enrollment Penalty?

If you sign up late for Medicare Part B, you will have to pay a late enrollment penalty for as long as you have Part B. Your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but did not sign up. If you’re allowed to sign up for Part B during a Medicare Special Enrollment Period, you usually don’t pay a late enrollment penalty.

 

Example: Mr. Smith’s Initial Enrollment Period ended September 30, 2012. He waited to sign up for Part B until March 2015 during the General Enrollment Period. His Part B premium penalty is 20%. (Even though Mr. Smith waited a total of 30 months to sign up, this included only 2 full 12-month periods.) He’ll have to pay this penalty for as long as he has Part B.

 

What Does Medicare Part B Cover?

Medicare Part B helps cover medically necessary doctors’ services, outpatient care, home health services, durable medical equipment, and other medical services. Part B also covers many preventive services. You can find out if you have Part B by looking at your red, white, and blue Medicare card.

 

You must pay the annual Medicare Part B deductible ($166 in 2016) before Medicare begins to pay its share. Then, after your deductible is met, you typically pay 20% of the Medicare-approved amount of the service, if provider accepts assignment. Remember, there is no yearly out-of-pocket limit for what you pay.

 

Generally, preventive services are covered 100% if you get the services from a provider who accepts assignment. However, for some preventive services, you may have to pay a deductible, coinsurance, or both. These costs may also apply if you get a preventive service in the same visit as a non-preventive service.