Do you know how much you’ll be paying in Medicare Part D premiums? When you enroll in a Medicare Part D plan, you can get help paying for your prescription drugs.1 You may think your monthly premium is a fixed number, but your annual tax return can affect how much you pay in the end.2
The Facts About Monthly Medicare Part D Premiums
Medicare Part D offers prescription drug coverage for those who qualify. Most of these plans require a monthly premium payment that can vary based on the plan you choose. The amount you pay in premiums can alter what you pay out of pocket for your medications.
But just because you are paying a set amount for your plan’s premium doesn't mean that it's the amount you'll pay each month.
Your yearly income also factors into your monthly premium rate, depending on the amount you report in your IRS tax returns from two years ago. It also considers if you file individually, jointly, or married and separated.
What Is the Average Medicare Part D Premium?
Depending on how you file your IRS tax return and how much income you report, you could see an adjustment in your monthly Medicare Part D premium.3Based on your IRS filing status and yearly income in 2019, premium adjustments are as follows:2
Individual Tax Return
Joint Tax Return
Married & Separated Tax Return
2021 Premium Amount
$88,000 or less
$176,000 or less
$88,000 or less
Your plan premium
$88,001 to $111,000
$176,001 to $222,000
Your plan premium + $12.30
$111,001 to $138,000
$222,001 to $276,000
Your plan premium + $31.80
$138,001 to $165,000
$276,001 to $330,000
Your plan premium + $51.20
$165,001 to $499,999
$330,001 to $749,999
$88,001 to $411,999
Your plan premium + $70.70
$500,000 or more
$750,000 or more
$412,000 or more
Your plan premium + $77.10
Keep these adjustments in mind when you shop for Part D plans and consider your Medicare Part D premium. But most importantly, when looking at Part D plans, consider the coverage you need based on the prescription drugs you take. Adjusted premiums, in addition to deductibles, copayments, and coinsurance, can make the total amount you pay for prescription drugs too expensive. Luckily, you don't have to shop for coverage alone. Let HealthMarkets help.
What Is the Best Part D Prescription Plan?
The best Part D prescription drug plan depends on your budget and insurance needs. HealthMarkets’ innovative FitScore® can help you review your options and find the insurance plan that fits your needs.
Start comparing plans today, and find the right plan with a Medicare Part D premium that’s appropriate for you.
1.Medicare.gov. Retrieved from https://www.medicare.gov/drug-coverage-part-d/what-medicare-part-d-drug-plans-cover Accessed on February 3, 2021.
2.Medicare.gov. Retrieved from https://www.medicare.gov/drug-coverage-part-d/costs-for-medicare-drug-coverage/monthly-premium-for-drug-plans Accessed on February 3, 2021.
3.Medicare.gov. Retrieved from https://www.medicare.gov/your-medicare-costs/medicare-costs-at-a-glance Accessed on February 3, 2021.
HealthMarkets’ FitScore intends to identify plans that fit your needs. You should carefully review official plan materials.