Medicare Part B Premium History

Medicare refers to the U.S. federal government health insurance program for elderly and disabled citizens. Part B, specifically, is the medical insurance part of the program. Part A is hospital insurance, and most people pay no premiums for that. Part B, however, does require a premium. As of March 2015, the majority of Americans using Medicare paid a monthly premium of $104.90, but the rate consistently changes.

The Beginnings

With the signature of President Lyndon B. Johnson on July 30, 1965, the Medicare program became federal law. President Johnson enrolled former President Harry S.Truman as the first official Medicare recipient. President Truman opted for Part B coverage. The initial monthly premium cost was $3. On July 1, 1966, more than 19 million Americans joined President Truman and enrolled in Medicare. The monthly premium for Part B coverage increased to $4 in April of 1968.

1970-1989

Part B premium rates are based on the projected cost to the federal government and Congress, an unpredictable factor. Historically, premiums go up each year. For example, Medicare Part B cost recipients $5.30 in 1970. By 1973, it was up to $6.30, though it was reduced to $5.80 in July and $6.10 in August that year. The premiums continued to increase and reached $31.90 per month in 1989. That rate came from the Medicare Catastrophic Coverage Act of 1988, a change that was intended to expand the program to cover some prescription medications and reduce out-of-pocket costs. It was repealed in 1989.

1990-2015

In 1990, monthly premiums were reduced to $28.60, only to increase in 1991 to $29.90. Rates continued on a steady climb until they reached $45.50 in 2000. By 2007, the monthly premium for most Medicare Part B beneficiaries had more than doubled to a standard $93.50. Rates peaked in 2011 at $115.40 per month for Medicare Part B coverage. In 2012, Medicare reduced the premium to $99.90.

Income Levels

Monthly data compiled by the Social Security Administration shows the rates for "most" beneficiaries. Some Medicare beneficiaries pay more and some less or nothing at all. Some low-income recipients qualify for programs that assist with the monthly premium cost. State Medicaid programs are one example. Conversely, those in higher-income brackets began paying more in monthly premium cost in 2007. In 2014, an income of more than $85,000 for a single individual or $170,000 for married beneficiaries was considered "higher" and subject to additional premium cost.

References

• CMS.gov: Key Milestones in CMS Programs
• Federation of American Scientists: Medicare: Part B Premiums
• Medicare.gov: Part A Costs
• Medicare.gov: Part B Costs
• U.S. Social Security Administration: Annual Statistical Supplement, 201
• U.S. Social Security Administration: Social Security History
• U.S. Centers for Medicare & Medicaid Services. "Get Started with Medicare."
• U.S. Centers for Medicare & Medicaid Services. "Medicare Savings Program." Accessed July 16, 2020.
• CMS.gov. "Fact Sheet: Deciding Whether to Enroll in Medicare Part A and Part B When You Turn 65," Page 11. Accessed July 16, 2020.
• U.S. Department of Health and Human Services. "Who Is Eligible for Medicare?" Accessed July 16, 2020.
• U.S. Centers for Medicare & Medicaid Services. "How Do I Get Parts A&B?" Accessed July 16, 2020.
• Centers for Medicare & Medicaid Services. "2020 Medicare Parts A & B Premiums and Deductibles." Accessed July 16, 2020.
• Centers for Medicare & Medicaid Services. "Trump Administration Drives Down Medicare Advantage and Part D Premiums for Seniors." Accessed July 16, 2020.
• Social Security Administration. "Workers with Maximum-Taxable Earnings." Accessed July 16, 2020.
• U.S. Congress. "H.R. 748 -- CARES Act." Accessed July 16, 2020.

Show More