There are no Medicare income limits that pertain to eligibility. However, income can affect some monthly costs.
Those with higher incomes must pay higher monthly premiums for two Medicare programs.
These include Part B, which is the outpatient medical coverage of Original Medicare, and Part D, the program that provides prescription drug coverage.
Glossary of Medicare terms
We may use a few terms in this article that can be helpful to understand when selecting the best insurance plan:
- Out-of-pocket costs: An out-of-pocket cost is the amount a person must pay for medical care when Medicare does not pay the total cost or offer coverage. These costs can include deductibles, coinsurance, copayments, and premiums.
- Deductible: This is an annual amount a person must spend out of pocket within a certain period before an insurer starts to fund their treatments.
- Coinsurance: This is the percentage of treatment costs that a person must self-fund. For Medicare Part B, this is 20%.
- Copayment: This is a fixed dollar amount a person with insurance pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.
The law requires Medicare Part B and Part D to make premium adjustments based on a person’s income.
Part B
Original Medicare is comprised of Part A, inpatient insurance, and Part B, outpatient insurance.
Part B covers services, such as doctor visits, lab tests, medical equipment, and some home healthcare.
It also covers physical and occupational therapy.
Part D
Part D is prescription drug coverage.
A person with Original Medicare has the option of enrolling in a plan with a private insurance company.
The law does not require Medicare to adjust premiums based on income for the following programs:
- Medicare Advantage (Part C): This plan combines the benefits of Original Medicare (Part A and Part B) into one policy. Medicare Advantage plans also often include prescription drug plans (Part D) and additional benefits, such as vision and dental.
- Medigap (Supplement Insurance): This plan is available for purchase to a person with Original Medicare. Medigap plans help individuals to cover their Part A and Part B out-of-pocket expenses.
Private insurance companies administer both Medicare Advantage and Medigap plans.
Learn more about Medigap vs. Medicare Advantage.
According to the Kaiser Family Foundation (KFF), several congressional acts in recent decades have required Medicare to adjust monthly premiums based on income.
Medicare bases the adjustments on a person’s modified adjusted gross income, which is the total of adjusted gross income and tax-exempt interest income.
To determine the premiums it assigns, Medicare uses someone’s federal tax return from the Internal Revenue Service (IRS). In figuring the premiums of beneficiaries for 2024, Medicare uses tax returns from 2022, which is the most recent year the IRS provides to Social Security.
Most of the income thresholds for premium adjustments are subject to change. Since 2020, the government changes all the thresholds every year to reflect general price inflation. The only exception to these changes is the threshold for the top income level.
The Social Security Administration (SSA) reports that the government pays approximately 75% of the Part B premium for most beneficiaries, which means a person would pay the remaining 25%.
In contrast, individuals with higher incomes pay from 35 to 85% of the premium.
The majority of people fall into the income range associated with the standard rate, which in 2024 is $174.70. This amount can change each year.
The higher premium costs apply to less than 5% of Medicare beneficiaries, according to Social Security.
Medicare provides the chart below to show the yearly 2024 income thresholds associated with adjusted Part B premiums.
| File individual tax return | File joint tax return | File married and separate tax return | 2024 Part B premium |
| $103,000 or below | $206,000 or below | $103,000 or below | $174.70 |
| above $103,000 up to $129,000 | above $206,000 up to $258,000 | not applicable | $244.60 |
| above $129,000 up to $161,000 | above $258,000 up to $322,000 | not applicable | $349.40 |
| above $161,000 up to $193,000 | above $322,000 up to $386,000 | not applicable | $454.20 |
| above $193,000 and below $500,000 | above $386,000 and below $750,000 | above $103,000 and below $397,000 | $559.00 |
| $500,000 or above | $750,000 and above | $397,000 and above | $594.00 |
For most individuals, the government pays a large portion of the total expense of Part D, and the beneficiaries pay the rest.
A person with a higher income will pay a premium that consists of an extra amount added to the base rate, which is $34.70 in 2024. This rate can change from year to year.
Medicare provides the chart below to show the yearly 2024 income thresholds associated with adjusted Part D premiums.
| File individual tax return | File joint tax return | File married and separate tax return | 2024 Part D premium |
| $103,000 or below | $206,000 or less | $103,000 or below | your plan premium |
| above $103,000 up to $129,000 | above $206,000 up to $258,000 | not applicable | $12.90 + your plan premium |
| above $129,000 up to $161,000 | above $258,000 up to $322,000 | not applicable | $33.30 + your plan premium |
| above $161,000 up to $193,000 | above $322,000 up to $386,000 | not applicable | $53.80 + your plan premium |
| above $193,000 and below $500,000 | above $386,000 and below $750,000 | above $103,000 and below $397,000 | $74.20 + your plan premium |
| $500,000 or above | $750,000 and above | $397,000 and above | $81.00 + your plan premium |
Various life events can cause a person’s annual income to change.
Individuals with the following experiences should notify Social Security of income change:
- They get divorced or married, or they become widowed.
- They or their spouse lose income-producing property due to a disaster or event beyond their control.
- They or their spouse work fewer hours or stop working altogether.
- They or their spouse receive a settlement from a former or current employer due to the employer’s reorganization or bankruptcy.
- They or their spouse stop or start receiving a pension.
If an individual does not agree with Medicare’s decision about their income-related premium adjustment, they can file an appeal.
To do this, a person may call Social Security at 800-772-1213.
A deaf or partially deaf person may call 877-486-2048.
Medicare resources
For more resources to help guide you through the complex world of medical insurance, visit our Medicare hub.
A person’s income cannot be so high that it disqualifies them for Medicare. Even those who receive very high incomes may enroll.
However, individuals with higher incomes pay higher premiums for parts B and D. However, Medicare income limits that affect premium rates only affect a small percentage of people.
A person who believes Medicare has made a mistake in a decision regarding their premium adjustment may file an appeal with Social Security.