If you filed individually and reported $97,000 or less in modified adjusted gross income (MAGI) on your 2021 tax return, you won't be charged higher rates for Medicare Part B (medical coverage) and Part D (prescription coverage) in 2023. For joint filers, the income limit is $194,000 or less.
If your income is above a specific limit, you pay higher monthly rates for both Medicare Part B and Medicare Part D. Medicare Part A and Part C rates are not based on income.
The prices you'll pay for Medicare Part B and Part D in 2023 are based on income reported on your 2021 tax return. Individuals who earned $97,000 or less and joint filers who earned $194,000 or less won't pay extra for Part B or Part D.
Medicare prices are tiered for higher incomes. For example, individual tax filers who made between $97,000 and $123,000 pay about 40% more for Medicare Part B, while rates increase by 240% for people earning more than $500,000.
If your income and other financial resources fall below certain levels, you might qualify for programs that reduce your Medicare costs including monthly premiums, deductibles and coinsurance. These programs set their own income limits.
What are the income limits for Medicare in 2023?
If you filed individually and reported $97,000 or less in modified adjusted gross income (MAGI) on your 2021 tax return, you won't be charged higher rates for Medicare Part B (medical coverage) and Part D (prescription coverage) in 2023. For joint filers, the income limit is $194,000 or less.
Medicare income limits determine your monthly payment amount for Medicare Part B and Medicare Part D plans. If your income was over the Medicare limits, you'll pay more for Part B and Part D.
What are my Medicare costs in 2023?
Most people will pay the standard Medicare Part B rate in 2023. For Part D, you pay the rate for the plan you select and may pay an additional amount to Medicare, depending on your income.
Individual 2021 income Joint 2021 income Monthly Part B rate Part B % increase Extra Part D amount Up to $97,000 Up to $194,000 $164.90 $0 $97,001 up to $123,000 $194,001 up to $246,000 $230.80 40% $12.20 $123,001 up to $153,000 $246,001 up to $306,000 $329.70 100% $31.50 $153,001 up to $183,000 $306,001 up to $366,000 $428.60 160% $50.70 $183,001 up to $500,000 $366,001 up to $750,000 $527.50 220% $70.00 $500,001 or above $750,001 or above $560.50 240% $76.40
Part B and Part D premiums are deducted automatically from your Social Security or Railroad Retirement Board benefit payments. If you don't get a monthly payment, Medicare will send you a bill.
Medicare Part B premiums
For 2023, the standard Medicare Part B monthly premium is $164.90. But you will pay higher rates if you reported earnings of more than $97,000 on your individual 2021 tax return or more than $194,000 on a joint return. For instance, individuals who made $100,000 in 2021 will pay $230.80 per month for Medicare Part B in 2023.
The added charge is known as an income-related monthly adjustment amount, or IRMAA. The Social Security Administration (SSA) determines your IRMAA based on the modified adjusted gross income on your tax return. If the SSA finds that you owe a higher premium, the agency will mail you an IRMAA letter to let you know your payment amount.
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Individual 2021 income Joint 2021 income Monthly rate % increase Up to $97,000 Up to $194,000 $97.10 $97,001 up to $123,000 $194,001 up to $246,000 $161.80 67% $123,001 up to $153,000 $246,001 up to $306,000 $258.90 167% $153,001 up to $183,000 $306,001 up to $366,000 $356.00 267% $183,001 up to $500,000 $366,001 up to $750,000 $453.10 367% $500,001 or above $750,001 or above $485.50 400%
Medicare Part D premiums
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Unlike Medicare Part B rates, Medicare Part D rates are set by individual insurance providers and can vary by plan. If you have Part D, you pay a monthly amount to your insurance company for your coverage. But if you're charged more based on income, you pay the extra amount directly to Medicare.
For 2023, the extra Part D premium is based on the nationwide average amount of $32.74.
The income limits for Medicare Part D are the same as the Part B amounts. So, if your modified adjusted gross income for 2021 was more than $97,000 or $194,000 — depending on filing status — you'll pay extra for Medicare Part D. For example, if you earned $124,000 in 2021 and filed an individual return, you would pay an extra $31.50 per month for Part D in 2023.
Medicare Extra Help 2023 income limits
Medicare Extra Help 2023 income limits are not yet available but are due to be released soon.
Income limits for 2022 are $20,385 for an individual or $27,465 for a married couple living together. There also are limits on your other financial resources: Your combined savings, investments and real estate can't be worth more than $15,510 if you're single or $30,950 if you are married and live with your spouse. You must meet each of these requirements to qualify for Extra Help.
2022 income limit 2022 resource limit $20,385 single
$27,465 married $15,510 single
$30,950 married
The Medicare Extra Help program assists with monthly Part D costs including monthly premiums, annual drug deductibles and prescription copayments. In 2023, you’ll pay a maximum of $4.15 for each generic or $10.35 for each brand-name prescription. Extra Help is estimated to save enrollees about $425 every month.
You can apply for Medicare Extra Help online, at your local Social Security office or over the phone by calling 800-772-1213 (TTY 800-325-0778).
Extra Help is only available if you're on Original Medicare and a separate Part D prescription plan. You can't use Extra Help to reduce drug costs on a Medicare Advantage (Part C) plan.
Income limits for Medicare Savings Programs
The 2023 income limits for Medicare Savings Programs (MSPs) have not been announced but are expected to be available soon.
There are four kinds of MSPs, each with its own income and resource qualifications. As with the Extra Help program, income and resources are assessed separately and you must meet both requirements to qualify for a savings program.
Program Description 2022 income limit 2022 resource limit Qualified Medicare Beneficiary (QMB) Helps with Part A and Part B cost-sharing and Part B premiums $1,153 single
$1,546 married $8,400 single
$12,600 married Specified Low-Income Medicare Beneficiary (SLMB) Helps pay the Part B premium $1,379 single
$1,851 married $8,400 single
$12,600 married Qualified Individual (QI or QI-1) Helps pay the Part B premium $1,549 single
$2,080 married $8,400 single
$12,600 married Qualified Disabled and Working Individuals (QDWI) Helps pay the Part A premium $4,615 single
$6,189 married $4,000 single
$6,000 married
MSPs are federally funded programs administered by individual state Medicaid agencies. These programs help people with limited income and resources pay Medicare costs that include premiums, deductibles, copayments and coinsurance.
You can apply for an MSP through your state's Medicaid office. To find the contact information, select your state here.
Frequently asked questions Are there income limits for Medicare Part A? No, there are no income limits for Medicare Part A. If you qualify for Medicare Part A due to age or disability and are receiving Social Security, you're enrolled in Part A — usually automatically — at no cost. How can I get financial help for Medicare costs? If you qualify, you can get help for Medicare costs through Medicare Extra Help or one of the Medicare Savings Programs (MSPs), which are handled by state Medicaid offices. Your state Medicaid office also manages the Program of All-Inclusive Care for the Elderly (PACE) and can help with information on how to qualify and apply. Can I request a change to my IRMAA? Yes. If you had an event that caused your income to go down, you can request a reduction in your IRMAA. You can complete Form SSA-44 and mail or bring it to your local Social Security office, or call Social Security at 800-772-1213 (TTY 800-325-0778) for information. {"backgroundColor":"gray","content":"\u003C\/p\u003E
\u003Cp\u003ENo, there are no income limits for \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Cost of Medicare Part A and How it Works\" href=\"https:\/\/www.valuepenguin.com\/medicare-part-a\"\u003EMedicare Part A\u003C\/a\u003E\u003C\/span\u003E. If you qualify for Medicare Part A due to age or disability and are receiving Social Security, you're enrolled in Part A \u2014 usually automatically \u2014 at no cost.
\u003Cp\u003EIf you qualify, you can get help for Medicare costs through Medicare Extra Help or one of the Medicare Savings Programs (MSPs), which are handled by \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Medicare vs. Medicaid: The Important Differences to Know\" href=\"https:\/\/www.valuepenguin.com\/medicare-vs-medicaid\"\u003Estate Medicaid offices\u003C\/a\u003E\u003C\/span\u003E. Your state Medicaid office also manages the Program of All-Inclusive Care for the Elderly (PACE) and can help with information on how to qualify and apply.
\u003Cp\u003EYes. If you had an event that caused your income to go down, you can request a reduction in your IRMAA. You can complete \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" rel=\"noopener\" target=\"_blank\" title=\"Form SSA-44\" href=\"https:\/\/www.ssa.gov\/forms\/ssa-44-ext.pdf\"\u003EForm SSA-44\u003C\/a\u003E\u003C\/span\u003E and mail or bring it to your local Social Security office, or call Social Security at 800-772-1213 (TTY 800-325-0778) for information.\u003C\/p\u003E
Are there income limits for Medicare Part A? \",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"\
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No, there are no income limits for \u003Cspan\u003E\u003Ca class=\\\"ShortcodeLink--root ShortcodeLink--black\\\" title=\\\"Cost of Medicare Part A and How it Works\\\" href=\\\"https:\\\/\\\/www.valuepenguin.com\\\/medicare-part-a\\\"\u003EMedicare Part A\u003C\\\/a\u003E\u003C\\\/span\u003E. If you qualify for Medicare Part A due to age or disability and are receiving Social Security, you're enrolled in Part A \\u2014 usually automatically \\u2014 at no cost. \"}},{\"@type\":\"Question\",\"name\":\"\
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How can I get financial help for Medicare costs? \",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"\
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If you qualify, you can get help for Medicare costs through Medicare Extra Help or one of the Medicare Savings Programs (MSPs), which are handled by \u003Cspan\u003E\u003Ca class=\\\"ShortcodeLink--root ShortcodeLink--black\\\" title=\\\"Medicare vs. Medicaid: The Important Differences to Know\\\" href=\\\"https:\\\/\\\/www.valuepenguin.com\\\/medicare-vs-medicaid\\\"\u003Estate Medicaid offices\u003C\\\/a\u003E\u003C\\\/span\u003E. Your state Medicaid office also manages the Program of All-Inclusive Care for the Elderly (PACE) and can help with information on how to qualify and apply. \"}},{\"@type\":\"Question\",\"name\":\"\
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Can I request a change to my IRMAA? \",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"\
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Yes. If you had an event that caused your income to go down, you can request a reduction in your IRMAA. You can complete \u003Cspan\u003E\u003Ca class=\\\"ShortcodeLink--root ShortcodeLink--black\\\" rel=\\\"noopener\\\" target=\\\"_blank\\\" title=\\\"Form SSA-44\\\" href=\\\"https:\\\/\\\/www.ssa.gov\\\/forms\\\/ssa-44-ext.pdf\\\"\u003EForm SSA-44\u003C\\\/a\u003E\u003C\\\/span\u003E and mail or bring it to your local Social Security office, or call Social Security at 800-772-1213 (TTY 800-325-0778) for information.\
\
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Information on Medicare income limits, Medicare Savings Programs and the Extra Help program was obtained from several sources, including Medicare.gov, CMS.gov, SSA.gov and Benefits.gov.
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