Are you paying more for Medicare Part B & Part D?

If you have a very high income, you will likely pay a higher amount for your Part B premium and Part D premium. This is called an Income-Related Monthly Adjustment Amount (IRMAA).
 
The Social Security Administration receives your income information from the IRS and determines whether you should pay higher premiums. If you want to know why you are paying a higher premium, you can contact The Social Security Administration by calling the national helpline at 800-772-1213 or by calling your local Social Security office.  If you believe the amount you are paying is incorrect, you can request that Social Security make a new decision.  This is called a new initial determination. 
 
Remember, you may also pay higher Part B and/or Part D premiums if you were late to enroll in these benefits. Please click here for information about Part B late enrollment penalties and here for information about Part D late enrollment penalties.
 
You can request a new initial determination if you think that they received inaccurate or outdated information from the IRS to determine your IRMAA.  One  example could be that you filed an amended tax return with the IRS or have a more recent tax return that shows that you are receiving a lower income than previously reported.  Either way, you can also request a new initial determination if you experience a major life-changing event that has caused your income to decrease.
 
Life-changing events include:
  • The death of a spouse
  • Marriage
  • Divorce or annulment
  • Loss of your pension
  • When you or your spouse stop working or reduce the number of hours you work.
  • Involuntary loss of income-producing property due to a natural disaster, disease, fraud or other types of circumstances.
  • Receipt of settlement payment from a current or former employer due to the employer’s closure or bankruptcy.

 

What are the IRMAA amounts for Part B in 2016?

 
Here are the Income-related Monthly Adjustment Amounts or IRMAA for short, in 2016.
 
Beneficiaries who file a joint tax return* with an MAGI of:
  • Less than/equal to $170,000 will pay the standard Part B premium of $121.80 or $104.90*
  • Greater than $170,000 but less than or equal to $214,000 will pay an adjustment of $48.70 for a total premium of $170.50.
  • Greater than $214,000 but less than or equal to $320,000 will pay an adjustment of $121.80 for a total premium of $243.60.
  • Greater than $320,000 but less than or equal to $428,000 will pay an adjustment of $194.90 for a total premium of $316.70.
  • Greater than $428,000 will pay an adjustment of $268.00 for a total premium of $389.80.
 
Beneficiaries who are Single or Married and file an individual tax return with an MAGI of:
  • Less than/equal to $85,00 will pay the standard Part B premium of $121.80.
  • Greater than $85,000 but less than or equal to $129,000 will pay an adjustment of $194.90 for a total premium of $316.70.
  • Above $129,000 will pay an adjustment of $268.00 for a total premium of $389.80.
 
*If protected by the hold-harmless provision
 

The bad news is that IRMAA thresholds are frozen until 2019.

The Affordable Care Act imposed a freeze on the income thresholds that are in place now through the year 2019.  Because these thresholds will not rise with inflation, the number of beneficiaries who will pay the higher premiums will increase over these years.  The Kaiser Family Foundation projects the number of beneficiaries paying Part B IRMAA will increase from 2.4 million in 2012 to 5.5 million in 2019.
 
Source:  Kaiser Family Foundation Medicare Policy Issue Brief
You can also read this brochure from the Social Security Administration:  https://www.ssa.gov/pubs/EN-05-10536.pdf
 
 

Would you like my help?

If you would like to talk to me or schedule a meeting at your home or a nearby meeting place, you can reach me at 207-370-0143 or use my simple form on the CONTACT ME page of this site to send an email message.  The best part about working with me is that it will not cost you anything to meet with me to discuss your options or to review the plans that are available.  I am paid by the insurance companies in the form of a commission if you enroll in a plan.  You will not pay any more than anyone else and you are under no obligation whatsoever to enroll in any plans if you meet with me.  

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