Income-Related Medicare Part D Premiums

 

As a result of the Affordable Care Act, beginning next year, higher-income Medicare consumers will pay higher Part D premiums. From 2011 through 2019 individuals who have modified adjusted gross income (MAGI) at or above $85,000 per year and couples whose MAGI is at or above 170,000 per year will be subject to additional premiums for Part D. The premiums will be assessed on a sliding scale that is pegged to income levels. The extra amount will, in most cases, be directly deducted from the individual’s Social Security check.

While the income thresholds of $85,000 and $170,000 will be frozen through 2019, SSA may change them after that year.  

The formula used to calculate MAGI is based on federal taxes filed two years prior to the year when the income-related premium assessment takes place. As under Part B, the rule states that individuals may request that SSA use more current tax data to calculate MAGI if they have experienced a major life-changing event, as defined by the regulations, or may appeal the misapplication of an income-related premium expense. 

• Read more about income-related Part D premiums.
• Read the interim final rule on income-related Part D premiums.

-From “Doc Fix and Part D”, Medicare Watch, Volume 1, Issue 37, from The Medicare Rights Center, December 9, 2010.

 

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