When enrolling in the federal Medicare, there are Medicare premiums that the participating
Medicare enrollee is responsible on a monthly basis. A premium is the amount paid
or payable, often in installments (monthly), for an insurance (Medicare) policy.
Medicare premiums will have a lot of change that will take effect on 2012.
Part A: (Hospital Insurance) Medicare Premiums
Most people do not pay monthly Part A Medicare premiums because they or a spouse
has 40 or more quarters of Medicare-covered employment. Part A Medicare premiums
is $248.00 per month for people having 30-39 quarters of Medicare-covered employment.
Part A Medicare premiums is $451.00 per month for people who are not otherwise eligible
for premium-free hospital insurance and have less than 30 quarters of Medicare-covered
Part B: (Medical Insurance) Medicare Premiums
The standard Medicare Part B monthly premium will be $99.90 in 2012, a $15.50 decrease
over the 2011 premium of $115.40. Though, most Medicare beneficiaries in 2011 paid
$96.40 per month. The 2012 premium represents a $3.50 increase for them.
As required in the Medicare Prescription Drug, Improvement, and Modernization Act
of 2003, beginning in 2007 the Part B Medicare premiums beneficiary pays each month
is based on his or her annual income. In particular, if a beneficiary’s modified
adjusted gross income is greater than the legislated threshold amounts, the beneficiary
is responsible for a larger portion of the estimated total cost of Part B benefit
In addition to the standard Part B premium, affected beneficiaries must pay an income-related
monthly adjustment amount. These income-related amounts were phased-in over three
years, beginning in 2007. About 4 percent of current Part B enrollees are expected
to be subject to these higher Medicare premiums amount.