|
The Medicare Part B premium published by the Centers for Medicare & Medicaid Services (CMS) in September of each year represents approximately 25% of the full cost of Part B medical coverage.
The Federal Government subsidizes approximately seventy five percent of the cost for Medicare Part B from General Revenue Funds.
Most people will continue to pay 25% of the cost of Medicare Part B.
Effective January 2007, individuals affected by IRMAA, pay a larger percentage of the cost for Medicare Part B and the Federal Government pays a reduced percentage of the total cost. The amount of your modified adjusted gross income (MAGI) determines the amount of your Part B premium.
In general, the higher your MAGI, the higher your premium.
Premium surcharges for late enrollment or reenrollment will continue to be calculated based on the standard 25% Part B monthly premium.
The government phased in the Medicare Part B premium due to IRMAA over a three-year period. Effective January 2007, 33 percent of the IRMAA premium increase amount will apply, 67 percent will apply effective January 2008, and 100 percent effective January 2009.
See the following chart showing the amount of the Medicare Part B premium for 2010.
2010 IRMAA Chart to Determine Amount of Medicare Part B Premium
Based on Modified Adjusted Gross Income (MAGI)
|
Tax Filing Status: Single, Head of Household or Qualifying Widow or Widower with a Dependent Child
If your modified adjusted gross income (MAGI) on your 2008 tax return (or 2007, if 2008 was not available) was:
|
Then the Part B Premium is:
(The amount below includes the base premium)
|
|
More than $85,000 but less than or equal to $107,000
|
$154.70
|
|
More than $107,000 but less than or equal to $160,000
|
$221.00
|
|
More than $160,000 but less than or equal to $213,000
|
$287.30
|
|
More than $213,000.00
|
$353.60
|
|
Tax Filing Status: Married, Filing Jointly
If your modified adjusted gross income (MAGI) on your 2008 tax return (or 2007, if 2008 was not available) was:
|
Then the Part B Premium is:
|
|
More than $170,000 but less than or equal to $214,000
|
$154.70
|
|
More than $214,000 but less than or equal to $320,000
|
$221.00
|
|
More than $320,000 but less than or equal to $426,000
|
$287.30
|
|
More than $426,000.00
|
$353.60
|
|
Tax Filing Status: Married, Filing Separately If your modified adjusted gross income (MAGI) on your 2008 tax return (or 2007, if 2008 was not available) was:
|
Then the Part B Premium is:
|
|
More than $85,000.00 but less than or equal to $128,000.00
|
$287.30
|
|
More than $128,000.00
|
$353.60
|
Example:
An Individual who is unmarried and has a modified adjusted gross income of $163,000.00 would pay a Part B premium amount of $287.30.
Medicare uses your income for the year 2008 to determine the premium you pay for 2010. You may only use a more current year of income to determine the premium you pay, if you have a life-changing event.
Examples of life changing events:
- 1. Death of Spouse
- 2. Marriage
- 3. Divorce or annulment
- 4. Work Reduction
- 5. Work Stoppage
- 6. Reduction in income due to loss of income-producing property
- 7. Reduction in or loss of certain forms of pension income
Examples that are not life-changing events:
- Loss of dividend income
- Higher Medical expenses
- Higher Living expenses
- Loss of Child Support
- Loss of Alimony
- Voluntary Sale of income-producing property
There will be situations where you may have a one-time event causing an increase in your income for the tax year Social Security is using to impose IRMAA. This type of event would not be considered a life-changing event.
Examples of one-time income that cause an increase and are not life-changing events:
- Capital Gains from the Sale of Property
- Lottery Winnings
- Casino Winnings
- Conversion of an IRA
- Cashing bonds
- Stock options
If you have a life-changing event, you should ask Social Security for a new initial determination. This means they would use a more current year of income if it would lower the amount of your premium due to IRMAA.
|
