If you earn more than $103,000 ($206,000 if you're married), you pay higher monthly rates for both Medicare Part B and D.
For 2024, your costs for Medicare Parts B and D are based on the income on your 2022 tax return. If you earned $103,000 or less as an individual, or $206,000 or less if you are married and file your taxes together, you won't pay any extra for Part B or Part D.
If your income and other financial resources fall below certain levels, you might qualify for programs that lower your Medicare costs like monthly rates, deductibles and coinsurance. Typically, you need to earn less than $30,000 to qualify for one of these programs.
What are the income limits for Medicare in 2024?
If you filed individually and reported $103,000 or less on your 2022 tax return, you won't be charged higher rates for Medicare Part B (medical coverage) and Part D (prescription coverage) in 2024. If you filed with a partner or spouse, the income limit is $206,000 or less.
Medicare looks at a number called the modified adjusted gross income (MAGI) when determining whether you'll be charged a higher rate.
MAGI is simply your taxable income with a few exemptions and deductions added back in like your IRA contributions and any money you earned on tax-free bond interest.
Medicare income limits determine your monthly payment amount for Medicare Part B and Medicare Part D plans. If your income is over the Medicare limits, you'll pay more for Part B and Part D.
You have to pay for Medicare Part B even if you're enrolled in a Medicare Part C plan. That means you'll pay this higher rate regardless of whether you have Original Medicare or Medicare Advantage.
What are my Medicare costs for 2024?
Most people will pay the standard Medicare Part B rate in 2024. For Part D, you pay the rate for the plan you select. You may pay extra to Medicare for both Part B and Part D, depending on your income.
Part B and Part D rates are taken 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 rates
For 2024, the standard Medicare Part B monthly rate is $174.70. But you will pay higher rates if you earned more than $103,000 on your individual 2022 tax return or more than $206,000 on a joint return. For instance, people who made $105,000 in 2022 will pay $244.60 per month for Medicare Part B in 2024.
Medicare Part B monthly rate by 2022 annual income
Part B rate
|$103K or less||$206K or less||$174.70|
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 Social Security Administration finds that you owe a higher rate, the agency will mail you a letter to let you know your payment amount.
Part B immunosuppressive drug coverage only
Part B immunosuppressive drug coverage is a new Medicare benefit that started in 2023. It extends coverage for immunosuppressive drugs after a kidney transplant.
This benefit is separate from Original Medicare Part B and is not a full health insurance plan. In other words, you should have a separate form of regular health insurance to pay for your other medical costs.
You can think of immunosuppressive drug coverage as an extra or add-on benefit to help you manage the high costs of a kidney transplant.
Immunosuppressive drug coverage cost
Part B rate
|$103K or less||$206K or less||$103.00|
Monthly rates are based on 2022 income.
Medicare Part D rates
The income limits for Medicare Part D are the same as the Part B amounts. So if your modified adjusted gross income for 2022 was more than $103,000 or $206,000 — depending on whether you're single or married — you'll pay extra for Medicare Part D.
For example, if you earned $124,000 in 2022 and filed an individual return, you would pay an extra $12.90 per month for Part D in 2024.
Medicare Part D monthly rate by 2022 annual income
|$103K or less||$206K or less||$0.00|
The monthly costs of Medicare Part D plans are set by each insurance company. 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.
Medicare Extra Help 2023 income limits
The income limits for Medicare Extra Help for 2023 are $22,110 for an individual and $29,820 for a married couple living together.
You also can't have assets, such as savings, investments and real estate, worth more than $16,660 if you're single or $33,240 if you are married and live with your spouse. You must meet each of these requirements to qualify for Extra Help.
Limits are slightly higher in Alaska and Hawaii. If you have income from working, you may qualify for benefits even if your income is higher than the limits listed.
The Medicare Extra Help program helps pay for some of your Part D costs including monthly rates, 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 $442 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).
Income limits for Medicare Savings Programs
The 2023 income limits for Medicare Savings Programs (MSPs) are $19,920 per year for an individual and $26,868 per year for a married couple, in many cases.
There are higher income limits if you have a disability and are working. Plus, in about a third of states, it's easier to qualify because there are higher limits for income or financial resources.
There are four kinds of Medicare Savings Programs, each with its own income and resource qualifications. As with the Extra Help program, you must meet both the income and resources requirements to qualify for a savings program.
Medicare Savings Program (MSP) types
- Qualified Medicare Beneficiary (QMB)
- Specified Low-Income Medicare Beneficiary (SLMB)
- Qualified Individual (QI)
- Qualified Disabled and Working Individuals (QDWI)
The federal government pays for Medicare Savings Programs, but individual state Medicaid agencies run them. These programs help people with limited income and resources pay Medicare costs that include monthly rates and out-of-pocket costs, such as your deductible, copays and coinsurance.
You can apply for a Medicare Savings Program through your state's Medicaid office. To find the contact info for your area, select your state here.
Frequently asked questions
How much money can you make before it affects your Medicare?
You'll pay more for Medicare if you're an individual who earns more than $103,000 or part of a couple who earns more than $206,000. You can sign up for Medicare no matter how much money you make.
You can usually pay less for Medicare if you earn less than $30,000.
What income is used to determine my Medicare rate for 2024?
Medicare looks at your total income when determining whether you have to pay an extra fee for Medicare Part B and Part D. It does this by adding back nontaxed deductions and income — for example, IRA contributions and interest from municipal bonds — to your taxable income to arrive at your modified adjusted gross income (MAGI).
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 info 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 info.
How much do prescriptions cost with Medicare in 2023?
For people who earn less than $22,110 per year, the Extra Help program limits the cost of generic prescriptions to $4.15 and the cost of brand-name prescriptions to $10.35 each.
Information on Medicare income limits, Medicare Savings Programs and the Extra Help program was from several sources, including Medicare.gov, CMS.gov, SSA.gov, Benefits.gov and the National Council on Aging (NCOA).