If you’re new to Medicare, you might assume that everyone pays the same premium for Medicare Part B. But the reality is far from that. Part B premiums are income-based, and what you pay depends on your income from two years ago. Understanding how this works can help you avoid surprises and plan accordingly.
How Medicare Part B Premiums Are Determined
Medicare Part B covers doctor visits, outpatient services, and preventive care. Unlike Part A, which is often premium-free, Part B requires a monthly premium. The amount you pay is based on the Income-Related Monthly Adjustment Amount (IRMAA), which uses your Modified Adjusted Gross Income (MAGI) from two years prior to determine your premium rate.
For example, in 2025, your Medicare Part B premium is based on your 2023 income. If you earned above certain thresholds, you will pay more than the standard premium amount.
Medicare Part B Premium Chart for 2025
Here’s a breakdown of how income affects your Part B premium:
| Individual Income (2023) | Married Filing Jointly (2023) | Part B Monthly Premium (2025) |
| $106,000 or less | $212,000 or less | $185.00 |
| $106,001 – $133,000 | $212,001 – $266,000 | $259.00 |
| $133,001 – $167,000 | $266,001 – $334,000 | $370.00 |
| $167,001 – $200,000 | $334,001 – $400,000 | $480.90 |
| $200,001 – $500,000 | $400,001 – $750,000 | $591.90 |
| Over $500,000 | Over $750,000 | $628.90 |
New to Medicare? What You Need to Know
- Your first premium is based on income from two years ago. If your income was higher in that year but has since dropped due to retirement or other reasons, you can request a reassessment.
- IRMAA adjustments aren’t automatic. If your income has changed, you must file an appeal with the Social Security Administration (SSA) to get a lower premium.
- Medicare uses tax return data. The IRS provides Medicare with your tax records, and your premium is adjusted based on reported income.
What If Your Income Has Decreased?
If you’ve had a significant life event that reduced your income—such as retirement, marriage, divorce, or job loss—you may qualify for a lower Part B premium. To request an adjustment, submit Form SSA-44 along with supporting documentation.
Planning for Medicare Costs
Understanding how Medicare Part B premiums work can help you make better financial decisions before and after enrolling. If you expect your income to change, consider talking to a financial advisor or Medicare expert to explore your options.
Final Thoughts
Medicare Part B premiums vary based on income, and what you pay today is determined by your financial history from two years ago. If you’re new to Medicare, be sure to check where you fall on the Part B income chart and take action if you believe you qualify for a lower rate. Staying informed can help you manage your healthcare costs more effectively.
