Higher Income Individuals Pay More for Medicare

Harriet Komisar, AARP Public Policy Institute

Olivia Dean, AARP Public Policy Institute

AARP Public Policy Institute

Published November 09, 2017

The Medicare program requires higher-income individuals to contribute more toward the cost of the program than other people. When enrolled in Medicare, people with incomes greater than $85,000 for an individual (or $170,000) for a couple) pay higher premiums—known as income-related premiums—for Medicare Part B (doctors’, other health care professionals’, and outpatient services) and Part D (prescription drug) coverage. Over time, the proportion of people with Medicare who pay income-related premiums for Medicare Part B and Part D has grown significantly. As workers, some higher-income individuals also pay a higher Medicare tax rate on their earnings.

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