Do you know how much you’ll be paying in Medicare Part D premiums? When you enroll in a Part D plan, you can get help paying for your prescription drugs. You may think your monthly premium is a fixed number, but your annual tax return can actually affect how much you pay in the end.
The Facts About Monthly 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.
Your Premium Cost + Monthly Adjustment
Depending on how you file your IRS tax return and how much income your report, you could see an adjustment in your monthly Medicare Part D premiums. Based on your IRS filing in 2014, 2016 premium adjustments are as follows:
2014 Individual Tax Return
2014 Joint Tax Return
2014 Married & Separated Tax Return
2016 Premium Amount
$85,000 or less
$170,000 or less
$85,000 or less
Your plan premium
$85,001 to $107,000
$170,001 to $214,000
Your plan premium + $12.70
$107,001 to $160,000
$214,001 to $320,000
Your plan premium + $32.80
$160,001 to $214,000
$320,001 to $428,000
$85,001 to $129,000
Your plan premium + $52.80
$214,001 or more
$428,001 or more
$129,001 or more
Your plan premium + $72.90
Keep these adjustments in mind when you shop for Part D plans. But most importantly, consider the coverage you need based on the prescription drugs you take when looking at Part D plans. Adjusted premiums, in addition to deductibles, copayments and coinsurance, can affect the total amount you pay for prescription drugs. Luckily, you don't have to shop for coverage alone. Let HealthMarkets help.
Our services are free*, so give us a call today at (800) 360-1402 to let us help you.
*Sales agents may be compensated based on a consumer’s enrollment in an insurance plan.