The Centers for Medicare and Medicaid Services (CMS) updates the Part B premium each year. These adjustments are made according to formulas set by statute. By law, the monthly Part B premium must be sufficient to cover 25 percent of the program’s costs, including the costs of maintaining a reserve against unexpected spending increases. The federal government pays the remaining 75 percent.
Below are the annual Part B premium amounts from Calendar Year (CY) 1996 to 2006. For these years, and years prior to 1996, the Part B premium is a single established rate for all beneficiaries.
Year Part B Premium
1996 $42.50
1997 $43.80
1998 $43.80
1999 $45.50
2000 $45.50
1996 $42.50
1997 $43.80
1998 $43.80
1999 $45.50
2000 $45.50
2001 $50.00
2002 $54.00
2003 $58.70
2004 $66.60
2005 $78.20
2006 $88.50
2002 $54.00
2003 $58.70
2004 $66.60
2005 $78.20
2006 $88.50
Beginning on January 1, 2007, the Part B premium is based on the income of the beneficiary.
