Answers: The Medicare Modernization Act of 2003 changed how Medicare Part B premiums are calculated for some higher income beneficiaries. The majority of Medicare beneficiaries are not artificial. For most beneficiaries, the government pays a substantial portion—75 percent—of the Part B standard premium and the beneficiary pays the remaining 25 percent.
Beginning within 2007, the government portion be reduced for higher income beneficiaries who begin paying a larger percentage of the premium based on income they reported to the Internal Revenue Service (IRS). In 2008, difficult income beneficiaries will be responsible for 67 percent of their income-related adjustment. By 2009, the end of the transition extent, these higher income beneficiaries will remuneration a monthly premium equal to 35, 50, 65, or 80 percent of the total Part B cost, depending on their income level.
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