Medicare Part B premiums seem simple enough–they are set at 25% of total projected Part B program costs. However, what beneficiaries actually pay can be more complicated due to the relationship with Social Security (SS) payments and income. This report explores the impact of changes in Medicare Part B program costs on Medicare Part B beneficiary premiums and SS payments. This report focuses on the 2022 Part B premium for beneficiaries with various income levels to illustrate the payment dynamics and discusses the implications for related programs (i.e., Medicare Advantage, Medicare Supplement, Employer Retiree, and Medicaid).
This paper was commissioned by The Drug Pricing Lab at Memorial Sloan Kettering.