File Individual Tax Return


File Joint Tax Return

Income-related

Monthly 

Adjustment Amount

Total Monthly Premium

(in 2019)


$85,000 or less


$170,000 or less$0.00

$135.50


above $85,000

up to $107,000


above $170,000

up to $214,000

$54.10

$189.60


above $107,000

up to $133,500

above $214,000

up to $267,000

$135.40

$270.90


above $133,500
up to $160,000

above $267,000
up to $320,000

$216.70

$351.50


above $160,000

up to $500,000


above $320,000

up to $750,000

$297.90

$433.40


above $500,000


above $500,000

$325.00

​$460.50



​You may be able to help out your mom, dad, grandparents, aunts, uncles, neighbors or anyone that complains about the cost of Medicare. You just have to show them where to go. Social Security can be of help with several programs available to individuals with low income.

D

A

Part D is prescription drug coverage that you buy from an Insurance Company. This is a separate plan that just covers your drugs. You must have Part A & B of Medicare to buy a stand alone Part D Rx plan. You are not automatically enrolled onto Part D. You must be a good consumer and shop around to find the plan that best fits your needs.


​You need to understand how the deductible, copays, co-insurance and coverage gap (formerly known as the donut hole) works. It's important to understand Part D CostsAnd by the way, there is now a charge based on your income (referred to as IRMAA). 

C

- Information about Medicare -

PART B PREMIUMS BY INCOME

There are 4 Parts of Medicare

B


File Individual Tax Return


File Joint Tax Return

You Pay

(in 2019)


$85,000 or less


$170,000 or less

your plan

premium


above $85,000

up to $107,000


above $170,000

up to $214,000

$12.40 + your

plan premium


above $107,000

up to $133,500

above $214,000

up to $267,000

$31.90 + your

plan premium


above $133,500
up to $160,000

above $267,000
up to $320,000

$51.40 + your

plan premium


above $160,000

up to $500,000


above $320,000

up to $750,000

$70.90 + your

plan premium


above $500,000


above $750,000

$77.40 + your
plan premium

Part A is the Hospital side. It really covers Hospital care, skilled nursing care (not long term care), Hospice, which is end of life care and Home Health Services 


​​How much does it cost? The government tells you it is “premium free” but there is nothing free about it. You pre-fund Part A through your Medicare payroll taxes. You pay 1.45% and your employer pays 1.45%. If you’re self-employed you are really lucky and pay the entire 2.9%!

WHATS MEDICARE

PART D PREMIUMS BY INCOME

Part C is an “HMO” type plan that most people are familiar with. It is called Medicare Advantage. These plans are run by private insurance companies. The government pays them a fee to take care of you. You still have Medicare Parts A & B (which is called Original Medicare) but your care is being provided by a Private Insurance Company. Part C usually combines hospital costs, doctors visits and other medical services, plus prescription drug coverage. Sometimes they throw in a dental and vision plan. The rules are different and you need to understand them before you sign up.

Can’t afford Medicare premiums? You may qualify for assistance. There are several programs out there that can help you. You need to take action. The Medicare website does a great job of explaining you options.

Part B is the Medical side. It covers medically necessary services including doctors services, outpatient care, home health services, durable medical equipment and other medical services. Part B also covers Preventive and screening services.


The cost: for most people it’s $134/month for 2018. But wait, it gets better because they now “means” test Part B premiums! That means if you are a larger earner, individual or couple, you will pay additional premiums. The government looks back at your tax return from two years ago and will charge you higher Part B premiums if you had more income then. In technical terms it is referred to as Income Related Monthly Adjustment Amounts (IRMAA). This page from Medicare gives you all the information related to additional premiums.


Part B late enrollment penalty. If you don’t sign up when you are supposed to, you can be fined. The fines can last a lifetime for Part B! Don’t let it happen to you. Technically, they fine you 10% of the Part B premium for every 12-month period that you could have had Part B, but didn’t enroll. It’s bad.