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12/22/2010
Part D coverage will cost more for some starting in 2011
Beginning Jan. 1, 2011, federal health care reform requires Medicare beneficiaries with higher incomes to pay an Income Related Monthly Adjusted Amount (IRMAA) surcharge for Part D coverage, similar to the methodology currently used for Part B. Those with Part D will pay the regular plan premium for their Part D plan plus any income-related adjustment via a deduction from their Social Security, Office of Personnel Management (OPM) or Railroad Board (RRB) benefit payment.
The Social Security Administration uses the most recent federal income tax return information to identify a beneficiary's Modified Adjusted Gross Income (MAGI) and make IRMAA determinations. The MAGI is the sum of:
- The beneficiary's adjusted gross income (AGI), plus
- Tax-exempt interest income
The following table shows the 2011 Part D IRMAA to be paid by beneficiaries who file an individual tax return (including those who are single, head of household, a qualifying widow[er] with dependent child, or married filing separately who lived apart from their spouse for the entire taxable year), or who file a joint tax return:
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Beneficiaries who file an individual tax return with income:
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Beneficiaries who file a joint tax return with income:
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Income-related monthly adjustment amount
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Less than or equal to $85,000
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Less than or equal to $170,000
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$0.00
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Greater than $85,000 and less than or equal to $107,000
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Greater than $170,000 and less than or equal to $214,000
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$12.00
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Greater than $107,000 and less than or equal to $160,000
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Greater than $214,000 and less than or equal to $320,000
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$31.10
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Greater than $160,000 and less than or equal to $214,000
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Greater than $320,000 and less than or equal to $428,000
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$50.10
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Greater than $214,000
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Greater than $428,000
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$69.10
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In addition, the income-related monthly adjustment amounts to be paid by Part D beneficiaries who are married but who file a separate return from their spouse and lived with their spouse at any time during the taxable year are as follows:
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Beneficiaries who are married and lived with their spouse at any time during the year, but file a separate tax return from their spouse:
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Income-related monthly adjustment amount
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Less than or equal to $85,000
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$0.00
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Greater than $85,000 and less than or equal to $129,000
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$50.10
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Greater than $129,000
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$69.10
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Those beneficiaries who aren't enrolled in Part D are not subject to this IRMAA surcharge.
Part D beneficiaries with limited income and assets may be eligible for federal subsidies to reduce their premiums and coinsurance. Information is available at 1-800-MEDICARE (1-800-633-4227) and, for hearing and speech impaired, at TTY/TDD: 1 (877) 486-2048.
For a full description of the IRMAA surcharge, details on how it's determined and definitions, visit the Social Security Administration site. Additional information may also be obtained by reviewing the CMS Fact Sheet on "Medicare Premiums, Deductibles for 2011."
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