Kristin P Sinclair – A Accu Tax – October 10th 2018 – Rock Hill, SC – Charleston, SC
When you are a high income tax payer you may have additional premiums added to your Medicare premiums, as well as your Medicare Part D premiums. Both on a stand a lone plan as well as on the Medicare Part C plan with the Part D in your MAPD plan.
Most people roughly 95% of Medicare Beneficiaries will not pay this additional premium, however that also means somewhere close to 5% of Medicare Beneficiaries will pay these additional sets of premiums.
This means most people will continue to pay only the Part D premium their plan charges. If you have to pay the extra amount in addition to the Part D plan premium, Social Security will use your reported IRS income to determine how much extra you have to pay. The extra amount is based on your yearly income .from two years prior income tax return reporting documents. Social Security will send you a letter if you have to pay an extra amount in addition to your monthly Part D plan premium. The charts below show the amount you’ll have to pay each month. In 2018 these figures will be adjusted for 2019.
Below are examples of the Part D premium differentials for 2018.
| If your filing status and yearly income in 2016 was | |||
Individual tax return |
File joint tax return |
File married & separate tax return |
You pay each month (in 2018) |
| $85,000 or less | $170,000 or less | $85,000 or less | your plan premium |
| above $85,000 up to $107,000 | above $170,000 up to $214,000 | not applicable | $13.00 + your plan premium |
| above $107,000 up to $133,500 | above $214,000 up to $267,000 | not applicable | $33.60 + your plan premium |
| above $133,500 up to $160,000 | above $267,000 up to $320,000 | not applicable | $54.20 + your plan premium |
| above $160,000 | above $320,000 | not applicable | $74.80 + your plan premium |
The figures above are premiums differential for year 2018 for medicare part D premiums.
So what should you expect for 2019. We are still waiting for congress to announce figures for 2019 to determine what figures will be applicable for the coming annual period.
Social Security Income-Related Monthly Adjustment Amount Notice
What is it? If you’re in a higher-income household, this notice tells you about income-related Medicare Part B and Part D premium adjustments for the coming year. It includes the information in the December BRI notices.
When should I get it? November
Who sends it? Social Security
What should I do if I get this notice? Keep the notice.
What should I do if I disagree with the decision? Social Security will send you a letter if your Medicare prescription drug plan premium will change based on your income. This letter will tell you what to do if you disagree. For more information, call Social Security at 1-800-772-1213. TTY users can call 1-800-325-0778.
What if my income has changed? If your income has changed and this change will make a significant difference in your income level, call Social Security. Let them know you have new information and may need a new decision about the extra amount you’ll be charged each month. Your income may have changed due to any of these reasons:
- You married, divorced, or your marriage was annulled
- You became a widow/widower
- You or your spouse stopped working or reduced work hours
- You or your spouse lost income from income-producing property due to a disaster or other event beyond your control
- You or your spouse’s employer pension plan was reorganized, terminated, or experienced a scheduled cessation
- You or your spouse got a settlement from an employer or former employer because of the employer’s closure, bankruptcy, or reorganization
Do I have to pay this extra amount?
You must pay both the extra amount and your plan’s premium each month to keep Medicare prescription drug (Part D) coverage.
To get more information.
If you have questions about your Medicare prescription drug coverage or how much you have to pay, call your plan, visit Medicare.gov, or call 1-800-MEDICARE (1-800-633-4227). TTY users can call 1-877-486-2048.
If you have questions about the extra amount you are being charged based on your income, visit socialsecurity.gov, or call Social Security at 1-800-772-1213. TTY users can call 1-800-325-0778.
You have the right to get Medicare information in an accessible format, like large print, Braille, or audio. You also have the right to file a complaint if you feel you’ve been discriminated against.
Visit Medicare.gov/about-us/nondiscrimination/ accessibility-nondiscrimination.html, or call 1-800-MEDICARE (1-800-633-4227) for more information. TTY users can call 1-877-486-2048.
If you owe the premium and fail to pay the premium you will loose your coverage. That would be a tragedy that you need to avoid. Plan ahead for obligations. Remember that it is possible that this higher premium will be adjusted the following annual period. Since the adjusted amount is determined by the income from 2 years prior tax return. Unless a higher income is a predictable norm for your situation, many people would see a change as income changes. Sometimes high incomes can be isolated events affecting a household in only specific situations such as selling stock realizing a gain, to allocate the funds for some thing needing to be funded. Life happens, and the government is willing to listen to the circumstances.
Remember the government will take into considerations when events are an anomaly. And it is possible that the income related adjustment could be adjusted when you present the circumstances and the facts surrounding the income increase which is outside of the household norm.
Kristin P Sinclair A Accu Tax
Rock Hill, SC Charleston, SC
Visit www.medicare.gov to do additional research on your situation. If you had higher income in 2017 this will impact you in 2019. Look for your notification to arrive in Nov 2018.