Railroad Retirement Board
Medicare
Part B Premiums for 2012
November 2011
The standard Medicare Part B monthly premium will be $99.90
in January 2012, an increase of $3.50 for most beneficiaries.
For the past 2 years, most beneficiaries continued to pay a
monthly premium of $96.40. This was due to a “hold harmless” provision in the
law that prevents Medicare premiums from increasing for most participants if
there is no social security cost-of-living adjustment. Since social security
benefits will increase by 3.6 percent in 2012, most people will see their
Medicare Part B premium increase from $96.40 to $99.90.
Beneficiaries who first enrolled in Part B coverage during
2010 or 2011 paid a monthly premium of $110.50 or $115.40, respectively. As a
result, the new standard premium of $99.90 will cause their premium to decrease
by $10.60 or $15.50 a month.
Some beneficiaries will continue to pay higher premiums
based on their modified adjusted gross income. The monthly premiums that
include income-related adjustments for 2012 will be $139.90, $199.80, $259.70,
or $319.70, depending on the extent to which an individual beneficiary’s modified
adjusted gross income exceeds $85,000 (or $170,000 for a married couple). The
highest premium rate applies to beneficiaries whose incomes exceed $214,000 (or
$428,000 for a married couple). The Centers for Medicare & Medicaid
Services estimates that about 5 percent of Medicare beneficiaries pay the
larger income-adjusted premiums.
Beneficiaries in Medicare Part D prescription drug coverage
plans pay premiums that vary from plan to plan. Beginning in 2011, the
Affordable Care Act required Part D beneficiaries whose modified adjusted gross
income exceeds the same income thresholds that apply to Part B premiums to also
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 amount
to the Railroad Retirement Board. The adjustment amount ranges from $11.60 to
$66.40.
The accompanying tables (hyperlink to
tables can be viewed by clicking here) show the income-related premium
adjustments for 2012. 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 2012, in most cases that will be the beneficiary’s 2010
tax return information. If that information is not available, SSA will use
information from the 2009 tax return.
Those railroad retirement and social security Medicare
beneficiaries affected by the 2012 Part B and D income-related premiums will
receive a notice from SSA in November 2011. 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.
Additional information about Medicare coverage, including
specific benefits and deductibles, can be found at www.medicare.gov.
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
Posted: 11/03/11