What determines the cost of Medicare Part B?

The cost of Medicare Part B is primarily determined by the enrollee's monthly income. This is structured as a standard premium rate that is subject to income-based adjustments. For individuals whose income is above a certain threshold, the premiums can increase significantly, which reflects a tiered system. The standard rate applies to most enrollees, but higher-income beneficiaries may pay an income-related monthly adjustment amount (IRMAA). This means that the program takes into account the financial means of the enrollee, making the costs more equitable based on income levels rather than other factors, such as age, geographic location, or medical history. These factors may influence coverage and care, but they do not directly affect the calculation of the monthly premium for Medicare Part B.