2007 Medicare Part B Premiums May Increase More Than You Think

Now that it is 2007, Medicare Part B monthly premiums have increased from $88.50 per month to $93.50 per month. In addition, wealthier beneficiaries will have to pay an additional amount each month based on their income. Beneficiaries were notified of these changes last fall - but what they may not have known is that IRA payouts and capital gains from the sale of a home will count towards the income used to the calculate Part B premiums. According to the Washington Post, this means that people may have to pay more for their Part B coverage than they had anticipated.

Beneficiaries who must pay more than the standard $93.50 per month will receive letters from the Social Security Administration this month notifying them of their increased payment. For more information and to find out whether you will have to pay extra, visit the Social Security website or call 1-800-772-1213.