Medicare Income Limits 2023
Medicare Income Limits 2023
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If your income is above a specific limit, you pay higher monthly rates for both Medicare Part B and Medicare Part D. Medicare Part A and Part C rates are not based on income.
In 2023, your costs for Medicare Parts B and D are based on income reported on your 2021 tax return. You won't pay any extra for Part B or Part D if you earned $97,000 or less as an individual or $194,000 or less if you are a joint filer.
If your income and other financial resources fall below certain levels, you might qualify for programs that reduce your Medicare costs including monthly premiums, 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 2023?
If you filed individually and reported $97,000 or less in modified adjusted gross income (MAGI) on your 2021 tax return, you won't be charged higher rates for Medicare Part B (medical coverage) and Part D (prescription coverage) in 2023. For joint filers, the income limit is $194,000 or less.
Medicare income limits determine your monthly payment amount for Medicare Part B and Medicare Part D plans. If your income was over the Medicare limits, you'll pay more for Part B and Part D.
What are my Medicare costs in 2023?
Most people will pay the standard Medicare Part B rate in 2023. For Part D, you pay the rate for the plan you select and may pay an additional amount to Medicare, depending on your income.
Individual 2021 income | Joint 2021 income | Monthly Part B rate | Part B % increase | Extra Part D amount |
|---|---|---|---|---|
| Up to $97,000 | Up to $194,000 | $164.90 | $0 | |
| $97,001 up to $123,000 | $194,001 up to $246,000 | $230.80 | 40% | $12.20 |
| $123,001 up to $153,000 | $246,001 up to $306,000 | $329.70 | 100% | $31.50 |
| $153,001 up to $183,000 | $306,001 up to $366,000 | $428.60 | 160% | $50.70 |
| $183,001 up to $500,000 | $366,001 up to $750,000 | $527.50 | 220% | $70.00 |
| $500,001 or above | $750,001 or above | $560.50 | 240% | $76.40 |
Part B and Part D premiums are deducted 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 premiums
For 2023, the standard Medicare Part B monthly premium is $164.90. But you will pay higher rates if you reported earnings of more than $97,000 on your individual 2021 tax return or more than $194,000 on a joint return. For instance, individuals who made $100,000 in 2021 will pay $230.80 per month for Medicare Part B in 2023.
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 SSA finds that you owe a higher premium, the agency will mail you an IRMAA letter to let you know your payment amount.
Part B immunosuppressive drug coverage only
This new Medicare benefit started in 2023 and extends coverage for immunosuppressive drugs after a kidney transplant. This benefit is separate from Original Medicare Part B and is not meant to act as a full health insurance plan.
Individual 2021 income | Joint 2021 income | Monthly rate | % increase |
|---|---|---|---|
| Up to $97,000 | Up to $194,000 | $97.10 | |
| $97,001 up to $123,000 | $194,001 up to $246,000 | $161.80 | 67% |
| $123,001 up to $153,000 | $246,001 up to $306,000 | $258.90 | 167% |
| $153,001 up to $183,000 | $306,001 up to $366,000 | $356.00 | 267% |
| $183,001 up to $500,000 | $366,001 up to $750,000 | $453.10 | 367% |
| $500,001 or above | $750,001 or above | $485.50 | 400% |
Medicare Part D premiums
The income limits for Medicare Part D are the same as the Part B amounts. So if your modified adjusted gross income for 2021 was more than $97,000 or $194,000 — depending on filing status — you'll pay extra for Medicare Part D.
For example, if you earned $124,000 in 2021 and filed an individual return, you would pay an extra $31.50 per month for Part D in 2023.
Individual 2021 income | Joint 2021 income | Extra monthly cost for Part D |
|---|---|---|
| Up to $97,000 | Up to $194,000 | $0 |
| $97,001 up to $123,000 | $194,001 up to $246,000 | $12.20 |
| $123,001 up to $153,000 | $246,001 up to $306,000 | $31.50 |
| $153,001 up to $183,000 | $306,001 up to $366,000 | $50.70 |
| $183,001 up to $500,000 | $366,001 up to $750,000 | $70.00 |
| $500,001 or above | $750,001 or above | $76.40 |
The cost of Medicare Part D plans is set by individual insurance companies. 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.
There also are limits on your other financial resources: Your combined savings, investments and real estate can't be 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.
2023 income limit | 2023 resource limit |
|---|---|
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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 assists with monthly Part D costs including monthly premiums, 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 MSPs, each with its own income and resource qualifications. As with the Extra Help program, income and resources are assessed separately, and you must meet both requirements to qualify for a savings program.
Program | Description | 2023 income limit | 2023 resource limit |
|---|---|---|---|
| Qualified Medicare Beneficiary (QMB) | Helps with Part A and Part B cost-sharing and Part B premiums | $14,820 single $19,956 married | $9,090 single $13,630 married |
| Specified Low-Income Medicare Beneficiary (SLMB) | Helps pay the Part B premium | $17,736 single $23,904 married | $9,090 single $13,630 married |
| Qualified Individual (QI) | Helps pay the Part B premium | $19,920 single $26,868 married | $9,090 single $13,630 married |
| Qualified Disabled and Working Individuals (QDWI) | Helps pay the Part A premium | $59,340 single $79,908 married | $4,000 single $6,000 married |
If you have income from working, you may qualify for benefits even if your income is higher than the limits listed.
MSPs are federally funded programs administered by individual state Medicaid agencies. These programs help people with limited income and resources pay Medicare costs that include premiums, deductibles, copayments and coinsurance.
You can apply for an MSP through your state's Medicaid office. To find the contact information, select your state here.
Frequently asked questions
How much money can you make before it affects your Medicare?
You can sign up for Medicare no matter how much money you make. You'll pay more for Medicare if you're an individual who earns more than $97,000 or part of a couple who earns more than $194,000. You can usually pay less for Medicare if you earn less than $30,000.
Are there income limits for Medicare Part A?
No, there are no income limits for Medicare Part A. If you qualify for Medicare Part A due to age or disability and are receiving Social Security, you're enrolled in Part A — usually automatically — at no cost.
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 information 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 information.
How much do prescriptions cost with Medicare in 2023?
Starting in 2023, those with Medicare won't pay more than $35 for a month's supply of insulin. For individuals 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.
Sources
Information on Medicare income limits, Medicare Savings Programs and the Extra Help program was obtained from several sources, including Medicare.gov, CMS.gov, SSA.gov, Benefits.gov and the National Council on Aging (NCOA).
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