How much does Part D cost?
Not everyone has the same situation, so in full disclosure, Benefits are based on the 2019 Tax return for 2021 benefits. If you have a higher income, you might pay more for your Medicare drug coverage. There is a chart below to determine If your income is above a certain limit ($87,000 if you file individually or $174,000 if you’re married and file jointly).
Social Security will determine if have you pay an extra amount in addition to your plan premium (sometimes called “Part D-IRMAA”) also known as Income Related Monthly Adjustment Amount.
Remember, this doesn’t affect everyone it is based upon income. There is a chart below that reflects the IRMAA if it even applies to you or your family. This doesn’t affect everyone, so most people won’t have to pay an extra amount.
If you have Part B and you have a higher income, you may also have to pay an extra amount for your Part B premium, even if you don’t have drug coverage. The chart below lists the extra amount costs by income.
If Social Security notifies you about paying a higher amount for your Part D coverage, you’re required by law to pay the Part D-Income Related Monthly Adjustment Amount (Part D IRMAA). If you don’t pay the Part D IRMAA, you’ll lose your Part D coverage.
Because Medicare Supplement/Medigap Plans and Medicare Advantage Plans are administered by Private Insurance Companies, if you join a Medicare Supplement/Medigap Plan offered by the same insurance company, you might have to make 2 separate premium payments. Your Licensed Insurance Advisor can help you make certain this is taken care of.
You can have your Medicare Supplement/Medigap premiums and/or your Part D Prescription Drug Plan automatically deducted from your banking/checking account.
Yearly deductible for drug plans
Deductibles are what you have to pay each year for your prescriptions before your Medicare drug plan pays its share.
Deductibles vary between Medicare drug plans. No Medicare drug plan may have a deductible of more than $445 in 2021. Some Medicare drug plans don’t have a deductible.
The chart below shows your estimated prescription drug plan monthly premium based on your income as reported on your IRS tax return. If your income is above a certain limit, you’ll pay an income-related monthly adjustment amount in addition to your plan premium.
|If your filing status and yearly income in 2019 was|
|File individual tax return||File joint tax return||File married & separate tax return||You pay each month (in 2021)|
|$88,000 or less||$176,000 or less||$88,000 or less||your plan premium|
|above $88,000 up to $111,000||above $176,000 up to $222,000||not applicable||$12.30 + your plan premium|
|above $111,000 up to $138,000||above $222,000 up to $276,000||not applicable||$31.80 + your plan premium|
|above $138,000 up to $165,000||above $276,000 up to $330,000||not applicable||$51.20 + your plan premium|
|above $165,000 and less than $500,000||above $330,000 and less than $750,000||above $88,000 and less than $412,000||$70.70 + your plan premium|
|$500,000 or above||$750,000 and above||$412,000 and above||$77.10 + your plan premium|