Pinnacle Personnel Services LLC | Debbie Hatch
Medicare Part A
Is typically paid through a payroll tax. Employers pay 1.45% of earnings and employees pay a minimum of 1.45% themselves. Under the Affordable Care Act of 2010, a surtax on earnings became effective 1 January 2013. Since that time, people making $200,000 or more pay an additional 0.9% (for a total of 2.35%). For a married couple filing an income tax return jointly, the surtax applies to the couple’s combined earnings above $250,000.
People with less than 40 earned quarters of Social Security credit have to pay a premium for Part A. Those rates are increasing to $422 per month in 2018 if a person has less than 30 quarters and $232 if the individual has 30-39 quarters.
The initial deductible (for up to 30 days of in-patient care) is going up to $1,340. It is then $335 per day, days 61-90; and $670 per day for days 91 and beyond.
Medicare Part B Covers outpatient services and is the type of Medicare that pays the doctor. Rather than a tax, Part B is paid as a premium. Premiums will remain at a minimum of $134 for 2018. People earning more than $85k have to pay more as Part B is based on income. Social Security looks back at your report income from two years prior.
If your yearly income in 2016 was $85,000 or less as an individual; $170,000 or less as married filing joint, you pay $134 per month in 2018 for Part B. If your income was above $85,000 up to $107,000 single; $170,000-$214,000 married, you pay $187.50 per month. If your income was above $107,000 to $133,500 single; above $214,000 to $267,000 married, you pay $267.90. $133,501 to $160,000 single; $267,001 to $320,000 married is $348.30 per month. If your individual return was above $160,000 single, $320,000 married, you’ll pay $428.60 per month, per person, for Part B.
Medicare Part C 
Part C is an optional part of Medicare that is sold through private companies. It is also referred to as Medicare Advantage. The amount you pay for Part C premiums, deductibles, copayments, and/or coinsurance varies by plan. Look for specific Part C plan costs, and then call the plans you’re interested in to get more details.
Medicare Part D
Covers prescriptions, monthly premiums again vary both by plan and income. Individuals making more than $85,000 and married couples above $170,000 are required to pay more. See the rate chart, below.
2 thoughts on “2018 Medicare Rates Released”
How is the cost for Medicare calculated for a married couple filing jointly short form 1040 and their total income is less than $85,000. Is there a government publication or law that covers this situation?
Hi there. A married couple filing jointly (with any tax form) and a total combined income of less than $170,000 for 2016 (Social Security looks back at income from two years ago) will pay $134 per person per month for Medicare Part B.
Here is a link to the information on Medicare’s website:
https://www.medicare.gov/your-medicare-costs/costs-at-a-glance/costs-at-glance.html#collapse-4809