Railroad Retirement Board
Medicare Part B Premiums to Increase in
2008
November
2007
The standard Medicare Part B monthly premium will be $96.40
in January 2008, an increase of $2.90 from the 2007 premium of $93.50.
Until 2007, all beneficiaries paid the same basic premium
amount for Medicare Part B, which is set annually at a level that covers 25
percent of the estimated Part B program costs for the year. The Government had subsidized the remaining
75 percent for all beneficiaries. As
part of the Medicare Prescription Drug, Improvement and Modernization Act of
2003, this 75-percent subsidy began decreasing in 2007 for those making over
certain annual threshold amounts.
The Part B monthly premiums for some beneficiaries will
increase again in 2008, depending on a beneficiary’s or married couple’s
modified adjusted gross income. The
income-related Part B premiums for 2008 will be $122.20, $160.90, $199.70, or
$238.40, depending on the extent to which an individual beneficiary’s income
exceeds $82,000 (or a married couple’s income exceeds $164,000), with the
highest premium rates only paid by beneficiaries whose incomes are over
$205,000 (or $410,000 for a married couple).
The income thresholds increase annually by indexing to the Consumer
Price Index (CPI). The accompanying
tables show the 2008 Part B premiums based on income. The Centers for Medicare & Medicaid
Services estimates that about 5 percent of Medicare beneficiaries with Part B
will pay higher premiums in 2008 based on their incomes.
The Social Security Administration (SSA) is responsible for
all income-related monthly adjustment amount determinations. To make the determinations, SSA will use the
most recent tax return information provided by the IRS. For 2008, in most cases that will be the
beneficiary’s 2006 tax return information. If that information is not
available, SSA will use information from the 2005 tax return.
Those railroad retirement and social security Medicare
beneficiaries affected by the 2008 Part B
income-related premiums will receive a notice from SSA by
December 2007. The notice will include
an explanation of the circumstances where a beneficiary may request a new
determination. Persons who have any
questions or would like to request a new determination should contact SSA after
receiving and reviewing their notice.
To view the accompanying tables along with the text of this
release, click on or type the address shown below:
http://www.rrb.gov/pdf/opa/pr0706.pdf
Participanta can find the address
and phone number of the RRB office serving their area by calling the automated
toll-free RRB Help Line at 1-800-808-0772.
They can also get this information from the agency’s Web site at
www.rrb.gov. Most RRB offices are open
to the public from
Public Affairs 312-751-4777
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