What is “Means Testing” in terms of Medicare?  “Means Testing” is the method used by Medicare to determine what you pay for your Medicare, Part B and Part D coverage.  Medicare, Part B covers doctor fees, outpatient care, physical therapy and some home health care.  Medicare, Part D covers prescription drugs.

The thresholds are the same for both Parts B and D.  If you file your federal income tax as “married/joint,” and your yearly income is $170,000 or higher, you will pay a higher premium than those couples whose joint income is less than $170,000 per year.  If you file your federal income tax as a single person, the threshold for the higher premium is $85,000 per year. 

For those taxpayers over age 65, with income greater than the threshold amount, the amount you pay for your Part B and Part D coverage will increase depending upon your income up to the upper limit of $428,000 in income for married/joint filers and $214,000 in income for single filers. 

Threshold levels are currently frozen through 2019.