Medicare Part B – Medical Insurance

Medicare Part B covers a portion of:

Part B coverage is optional. If you or your spouse is still working and covered by your employer group health plan, you may not need this part of Medicare until you or your spouse retires. Learn more.

The Medicare Part B premium ($110.50 in 2010) is automatically deducted from your Social Security check every month. If you don’t receive Social Security benefits, you will be billed for Part B. People with higher incomes (individuals with annual incomes over $85,000 and couples with incomes over $170,000) will pay higher Part B premiums. See table below.

Note: 73% of beneficiaries will not pay this new 2010 premium amount of $110.50; they will continue paying the 2009 premium amount of $96.40. Most beneficiaries are protected by law from any Part B premium increase if the cost of living adjustment (COLA) in their Social Security benefits does not increase, which is the case in 2010.

27% of beneficiaries, however, are not protected from this law and will have to pay the higher premium or more depending on their income. This group includes those who:

• Are new to Medicare (and their Medicare benefits become effective January 1, 2010 or later)
• Have higher income (see table below); and/or
• Do not have their Part B premium deducted from their Social Security check. This also includes beneficiaries who qualify for Medi-Cal or a Medicare Savings Program (because Medi-Cal pays the Part B premium).

2010 Part B Premiums & Deductibles

The chart below lists the Part B premiums and deductibles. For a comprehensive list of both Part A and Part B costs, see our summary chart, Medicare Benefits & Cost-Sharing for 2010.

See also:

• Medicare Part A
• Enrolling in Medicare Parts A and B
• Chart on Medicare Benefits and Cost-Sharing