Railroad Retirement Board
Medicare Premiums for 2011
November 2010
The Centers for Medicare & Medicaid Services has announced that the standard monthly Part B premium will be $115.40 in 2011. However, most Medicare beneficiaries will not see an increase in their monthly Part B premiums because of a “hold-harmless” provision in current law. Monthly premiums for beneficiaries protected by this provision will continue to be $96.40 or $110.50, the same monthly amount that they paid in 2010.
Some beneficiaries will pay the new standard monthly premium of $115.40 in 2011. These beneficiaries are not subject to the “hold-harmless” provision because they are new Medicare Part B enrollees during the year, they do not have their Part B premiums withheld from railroad retirement or social security benefit payments, or they are subject to the income-related additional premium amount (as explained below).
The Part B monthly premiums for some beneficiaries will increase again in 2011, depending on an individual’s or married couple’s modified adjusted gross income. The total monthly Part B premiums including income-related adjustments for 2011 will be $161.50, $230.70, $299.90, or $369.10, depending on the extent to which an individual beneficiary’s modified adjusted gross income exceeds $85,000 (or a married couple’s income exceeds $170,000), with the highest premium rates only paid by beneficiaries whose incomes are over $214,000 (or $428,000 for a married couple). The Centers for Medicare & Medicaid Services estimates that about 5 percent of Medicare beneficiaries with Part B will pay higher premiums in 2011 based on their incomes.
Beneficiaries in Medicare Part D prescription drug coverage plans pay premiums that vary from plan to plan. Beginning in 2011, the Affordable Care Act requires Part D beneficiaries whose modified adjusted gross income exceeds the same thresholds that apply to higher-income Part B beneficiaries to pay a monthly adjustment amount. These beneficiaries will pay the regular plan premium to their Part D plan and will pay the income-related adjustment to Medicare. The adjustment amounts range from $12.00 to $69.10.
The accompanying tables show the income-related premium adjustments for 2011 and can be viewed by clicking here. The Social Security Administration (SSA) is responsible for all income-related monthly adjustment amount determinations. To make the determinations, SSA uses the most recent tax return information available from the IRS. For 2011, in most cases that will be the beneficiary’s 2009 tax return information. If that information is not available, SSA will use information from the 2008 tax return.
Those railroad retirement and social security Medicare beneficiaries affected by the 2011 Part B and D income-related premiums will receive a notice from SSA by December 2010. The notice will include an explanation of the circumstances where a beneficiary may request a new determination. Persons who have questions or would like to request a new determination should contact SSA after receiving their notice.
Persons can find the address and phone number of the Board
office serving their area by calling the automated toll-free RRB Help Line at
1-800-808-0772, or from the Board's Web site. Most Board offices are
open to the public from
Public Affairs 312-751-4777
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