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Medicare: 7 Things You Don't Know - #6. Latest Tax Returns Determine Premium Surcharges

Monthly premium surcharges for Medicare Part B and Part D prescription drug plans are based on the latest tax return.

So your 2012 Tax Return filed in 2013 is the basis for the Medicare premiums you pay in 2014.

   These brackets are NOT adjusted for inflation, meaning more retirees could drift into the higher premium brackets each year.