How Are Medicare Premiums Calculated

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Medicare Premium Estimator (2024)

Calculate your monthly costs for Part A, B, and D based on income.

Single / Head of Household Married Filing Jointly Married Filing Separately
Based on your 2022 tax return for 2024 premiums.
40 or more (Free Part A) 30 – 39 quarters Less than 30 quarters

Your Estimated Monthly Costs

Part A Premium: $0.00
Part B Base Premium: $174.70
Part B IRMAA Adjustment: $0.00
Part D Plan Premium: $35.00
Part D IRMAA Adjustment: $0.00
Estimated Monthly Total: $209.70

How are Medicare Premiums Calculated?

Medicare premiums are not a "one size fits all" cost. While most people pay a standard rate, your specific monthly bill is determined by your work history, your income from two years prior, and the specific private plans you choose for prescription drugs.

1. Medicare Part A (Hospital Insurance)

For most Americans, Medicare Part A is "premium-free." This is because you or your spouse paid Medicare taxes for at least 40 quarters (10 years) while working. If you have fewer than 30 quarters, the monthly premium can be as high as $505 in 2024. Those with 30-39 quarters pay a prorated amount of $278.

2. Medicare Part B (Medical Insurance)

Part B always carries a premium. For 2024, the standard monthly premium is $174.70. However, if your Modified Adjusted Gross Income (MAGI) exceeds certain thresholds, you must pay an Income Related Monthly Adjustment Amount (IRMAA). The Social Security Administration uses your tax return from two years ago to determine this surcharge.

3. Medicare Part D (Prescription Drugs)

Part D costs consist of two parts: the base premium charged by your private insurance company and the IRMAA adjustment (if your income is high). While the base premium varies by plan, the IRMAA surcharge is a fixed amount set by the government based on your income bracket.

2024 Income Brackets and IRMAA

If you are filing as an individual and your 2022 income was $103,000 or less, you pay the standard rate. Once you cross that threshold, you enter "tiers" that increase your Part B and Part D costs significantly. The highest earners (over $500,000 for individuals) can see their Part B premium rise to over $590 per month.

Example Calculation

Consider a single filer who earned $150,000 in 2022. For the 2024 year:

  • Part A: $0 (assuming 40+ work quarters)
  • Part B Base: $174.70
  • Part B IRMAA: $174.70 (Tier 3 adjustment)
  • Part D Plan: $30.00 (Example private plan)
  • Part D IRMAA: $33.30 (Tier 3 adjustment)
  • Total Monthly: $412.70

function calculateMedicareCosts() { var income = parseFloat(document.getElementById('magiIncome').value); var status = document.getElementById('filingStatus').value; var quarters = parseInt(document.getElementById('workQuarters').value); var dPlan = parseFloat(document.getElementById('partDPlan').value); if (isNaN(income)) income = 0; if (isNaN(dPlan)) dPlan = 0; var partABase = 0; var partBBase = 174.70; var partBIRMAA = 0; var partDIRMAA = 0; // Part A calculation if (quarters >= 40) { partABase = 0; } else if (quarters >= 30) { partABase = 278; } else { partABase = 505; } // IRMAA Logic 2024 if (status === 'single') { if (income <= 103000) { partBIRMAA = 0; partDIRMAA = 0; } else if (income <= 129000) { partBIRMAA = 69.90; partDIRMAA = 12.90; } else if (income <= 161000) { partBIRMAA = 174.70; partDIRMAA = 33.30; } else if (income <= 193000) { partBIRMAA = 279.50; partDIRMAA = 53.80; } else if (income < 500000) { partBIRMAA = 384.30; partDIRMAA = 74.20; } else { partBIRMAA = 419.30; partDIRMAA = 81.00; } } else if (status === 'joint') { if (income <= 206000) { partBIRMAA = 0; partDIRMAA = 0; } else if (income <= 258000) { partBIRMAA = 69.90; partDIRMAA = 12.90; } else if (income <= 322000) { partBIRMAA = 174.70; partDIRMAA = 33.30; } else if (income <= 386000) { partBIRMAA = 279.50; partDIRMAA = 53.80; } else if (income < 750000) { partBIRMAA = 384.30; partDIRMAA = 74.20; } else { partBIRMAA = 419.30; partDIRMAA = 81.00; } } else { // Married Separate if (income <= 103000) { partBIRMAA = 0; partDIRMAA = 0; } else if (income < 397000) { partBIRMAA = 384.30; partDIRMAA = 74.20; } else { partBIRMAA = 419.30; partDIRMAA = 81.00; } } var totalMonthly = partABase + partBBase + partBIRMAA + dPlan + partDIRMAA; document.getElementById('resPartA').innerText = '$' + partABase.toFixed(2); document.getElementById('resPartBBase').innerText = '$' + partBBase.toFixed(2); document.getElementById('resPartBIRMAA').innerText = '$' + partBIRMAA.toFixed(2); document.getElementById('resPartDPlan').innerText = '$' + dPlan.toFixed(2); document.getElementById('resPartDIRMAA').innerText = '$' + partDIRMAA.toFixed(2); document.getElementById('resTotal').innerText = '$' + totalMonthly.toFixed(2); document.getElementById('medicare-result-box').style.display = 'block'; }

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