Quote:
Originally Posted by retiredguy123
To clarify, the Traditional Medicare premium is not $174.70 for all enrollees. Depending in your income, it can be more than 3 times that amount for the exact same coverage.
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This is correct. If you have a higher income, the Income-Related Monthly Adjustment Amount (IRMAA) may kick in. This applies to both the Medicare Parts A&B premium, and the Part D Prescription premium.
To determine if a surcharge is applied, Medicare looks the last income tax return provided by the IRS. They look at the Modified Adjusted Gross Income (MAGI), which is AGI plus tax-exempt interest. The first MAGI threshold where a surcharge kicks in is at $206,000 for couples filing jointly. The surcharge is $69.90. However, at $258,000, the surcharge is equal to the premium, $174.70. For singles, the threshold is half, so the increased premium starts at $103,000. The top surcharge is an additional $419.30 for couples over $750,000 and singles over $500,000.
I think that if I consistently had an income of $750,000 a year, I am ok with paying $594 a month for Medicare....however, it seems most of the complaints around IRMAA come from people who have a capital gain from the sale of stock or a house and that one event is what causes their monthly premiums to go up. Also, $129,000 for an individual is not really that huge of an income to trigger a doubling of the premium.