Medicare Income Limits
There are no income limits to receive Medicare coverage. This means that no matter how high or low your income is, you can still receive Medicare coverage. Medicare is available to any American 65 and over, regardless of income. You may pay higher premiums based on your income, but if you’re a low-income senior, you can qualify for assistant programs.
This article goes over some important things you need to know about your Medicare and how your income affects your premiums. We’ll also share some money-saving tips to make sure you get the best price for your Medicare.
Also Read: Medicare Supplement Vs. Medicare Advantage Plans
How Your Income Determines Your Medicare Premiums
Although Medicare doesn’t have income limits, your income does affect how much you pay in premiums. To estimate how much you’ll pay in Medicare premiums, take a look at your Modified Adjusted Gross Income (MAGI).
What’s Modified Adjusted Gross Income (MAGI) For Medicare?
Your Modified Adjusted Gross Income (MAGI) is that the total adjusted gross income with tax-exempt interest. To find your MAGI, take a look at last year’s tax return from 2020. Then find all the details on your 2019 earnings to see what your MAGI is.
You’re considered “higher-income” if you pass the $87,000 threshold as an individual, or $174,000 as a couple. If you’re a higher-income senior, you’d pay the standard Medicare Part B rate for 2020, which is around $148.50 in monthly premiums.
Also Read: Your Medicare Part B Coverage Explained
These premiums can rise up to $491.60 if your MAGI exceeds $500,000 as an individual and $750,000 as a couple.
Medicare Premiums Based On Income 2020
Here’s a quick breakdown of what you might expect to pay for monthly Medicare premiums based on your income. It’s important to note that this is only an estimate based off of 2020’s Medicare income premiums. Medicare premiums will have a slight increase. For a full breakdown of other important changes happening in 2021, check out our full guide here.
Also Read: Important Open Enrollment Changes 2021
Here are the average monthly premiums for last year. There should only be a slight increase for 2021. You should be able to get quotes for free via the Marketplace or when you call Quote Purple to compare.
| Individual Income Limits | Couples Income Limits | Monthly Medicare Part B Premiums 2020 | Monthly Medicare Part D Premiums 2020 |
| Less than $87k | Less than $174k | $144.60 | Just your premium |
| Between $87k – $109k | Between $174k – $218k | $202.40 | Monthly premium + $12.20 |
| Between $109k – $136k | Between $218k – $272k | $289.20 | Monthly premium + $31.50 |
| Between $136k – $163k | Between $272k – $326k | $376.00 | Monthly premium + $50.70 |
| Between $163k – $500k | Between $326k – $750 | $462.70 | Monthly premium + $70.00 |
| More than $500k | More than $750k | $491.60 | Monthly premium + $76.40 |
Low-Income Subsidy Options For Medicare
You have lots of options if you need extra help with your Medicare premiums. Medicare Part A coverage is free as long as you qualify for Social Security or Railroad Retirement Board benefits. Remember that Part A does have a yearly deductible of $1,408 you need to spend before the coverage takes over.
Some other ways to save money or get extra help on Medicare include:
- Qualified Medicare Beneficiary Program (QMB)
- Specified Low-Income Medicare Beneficiary Program (SLMB)
- Qualifying Individual Program (QI)
- Qualified Disabled and Working Individuals Program (QDWI)
To qualify for these savings programs, ask yourself if:
- You have, or qualify for Part A
- Your income is at or below the resource limits for Extra Help (see below)
If you qualify for these programs, call your state’s Medicaid Program here.
Extra Help Resource Limits
To qualify for Extra Help from the Government, you’ll need to meet the resource limit. This means your MAGI must be limited to $14,610 as an individual or $29,160 for a couple.
With Extra Help, you’ll need to consider your other forms of income. This includes:
- All real estate outside your primary residence
- Bank accounts including checking, savings, and certificates
- Stocks and bonds including saving bonds
- Individual retirement accounts (IRAs)
- Cash
Add the estimated value of these assets to your MAGI to see if you qualify for Extra Help. Some things that don’t count as a resource include:
- Your primary residence, personal possessions, or vehicle(s)
- Jewelry, furnishings, or other assets that can’t easily convert to cash
- Self-supporting property such as rentals, non-business property, and farmland
- Life insurance policies
- Burial expenses (up to $1,500) plus any interest
Open Enrollment’s coming up fast, and you only have a short time to pick the plan that’s right for you. Follow Quote Purple’s Facebook page to stay up-to-date on all the latest changes, and for more money-saving tips!
Also Read: A Step-By-Step Guide To Prepare For Open Enrollment 2021