One of the changes in this bill (Section 401 of the MACRA of 2015) which does impact Medicare Beneficiaries (Changes to Medigap Plan F in 2020) has already been heavily documented and reviewed.
Another change (Section 402 of the MACRA of 2015) will impact those individuals whose annual income is between $133,501 and $214,000 (as an individual) or $267,001 and $428,000 (married, filing jointly).
Income Related Monthly Adjustments (IRMAs) are required for individuals to pay to the government for their Part B & D premiums if they make more than $85,000 (as an individual) or $170,000 (as a couple).
Based on the current IRMA table being used in 2017, a couple making $270,000 (in 2015) would be aligned with the third tier for their Part B and Part D IRMAs in 2017, thus Premiums to the government are below:
Illustrative 2017 Premiums:
- Part B Premiums + IRMA = $267.90/mo
- Part D IRMA = $34.20/mo
- Total (for each person) = $302.10/month
- Total for both = $604.20/month
Based on the IRMA income threshold changes coming in 2018, this couple will likely see an increase of $2,400+ per year in Medicare premiums!*
Illustrative 2018 Premiums*:
- Part B Premiums + IRMA = $348.30/mo
- Part D IRMA = $55.20/mo
- Total (for each person) = $403.50/month
- Total for both = $807.00/month... increase of $200+/month... or $2,400+ per year
* We can't know for sure what the actual increase will be since the 2018 Medicare premium amounts have not been released yet, so this example assumes the Part B Premium & Part D IRMA amounts for each income tier do not increase in 2018.
Income levels impacted by the IRMA Threshold changes
- between $133,501 and $214,000 (as a single) ...OR
- between $267,001 and $428,000 (married filing jointly)
YOU ARE NOT IMPACTED BY THESE IRMA CHANGES If you're income is:
- below $133,500 (as a single) or $214,000 (married filing jointly )... OR
- above $214,000 (as a single) or $428,000 (married filing jointly)
If you have any further questions about how these changes to the IRMA tables in 2018, you can give us a call at 908-272-1970 to learn more.