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Higher Income Individuals Pay More for Medicare

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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