Medicare Premiums and High Income Earners
11/15/2010
We have an update that, though not directly related to health care reform, we wanted to bring to your attention. Medicare rates were recently released, as they are every fall, but this year brings a new change - if your yearly income is considered "high," you will pay more for your Part D plan. This is the first year that Part D plans have varied by income. The chart below shows how rates increase:
|
2011 Part B Monthly Premium |
Individual Return Income |
Joint Return Income |
Medicare Part D Monthly Surcharge |
|
$115.40* |
$85,000 or Less |
$170,000 or Less |
none |
|
$161.50 |
$85,001 - $107,000 |
$170,01 - $214,000 |
$12.00 |
|
$230.70 |
$107,001 - $160,000 |
$214,001 - $320,000 |
$31.10 |
|
$299.90 |
$160,001 - 214,000 |
$320,001 - $428,000 |
$50.10 |
|
$369.10 |
Above $214,000 |
Above $428,000 |
$69.10 |
So - what should you do? At first glance, the change looks like it affects a relatively small percentage of the population. And it does. But this change also sets a precedent for further rate setting, so it's important. For more information, visit Medicare's press release on these new rates. If you have any Medicare questions, please contact Linda Stuart, our Director of Compliance, at (317)218-1537.
Thank you and have a great week!
*Rate would be adjusted to $96.40 if beneficiary had SSA withheld in 2009 or $110.50 if beneficiary was new in 2010 and had SSA withheld then. view all news