Part D Coverage will cost some beneficiaries more in 2011 and beyond
December 1, 2010
Beginning Jan 1, 2011, higher income Medicare beneficiaries will pay an Income Related Monthly Adjusted Amount (IRMAA) surcharge for Part D coverage similar to the methodology currently used for Part B. Enrollees in Part D will pay the regular plan premium to their Part D plan and will pay the income-related adjustment to Medicare via a deduction from their Social Security, Office of Personnel Management (OPM), or Railroad Board (RRB) benefit payment.
The Social Security Administration (SSA) uses the most recent Federal income tax return information from the Internal Revenue Service (IRS) about beneficiaries’ Modified Adjusted Gross Income (MAGI) to make IRMAA determinations. The MAGI is the sum of:
- The beneficiary’s adjusted gross income (AGI), plus
- Tax-exempt interest income
The 2011 Part D IRMAA to be paid by beneficiaries who file an individual tax return (including those who are single, head of household, qualifying widow(er) with dependent child, or married filing separately who lived apart from their spouse for the entire taxable year), or who file a joint tax return are shown in the following table:
Beneficiaries who file an individual tax return with income: |
Beneficiaries who file a joint tax return with income: |
Income-related monthly adjustment amount |
Less than or equal to $85,000 |
Less than or equal to $170,000 |
$0.00 |
Greater than $85,000 and less than or equal to $107,000 |
Greater than $170,000 and less than or equal to $214,000 |
$12.00 |
Greater than $107,000 and less than or equal to $160,000 |
Greater than $214,000 and less than or equal to $320,000 |
$31.10 |
Greater than $160,000 and less than or equal to $214,000 |
Greater than $320,000 and less than or equal to $428,000 |
$50.10 |
Greater than $214,000 |
Greater than $428,000 |
$69.10 |
In addition, the income-related monthly adjustment amounts to be paid by Part D beneficiaries who are married, but file a separate return from their spouse and lived with their spouse at any time during the taxable year are as follows:
Beneficiaries who are married and lived with their spouse at any time during the year, but file a separate tax return from their spouse: |
Income-related monthly adjustment amount |
Less than or equal to $85,000 |
$0.00 |
Greater than $85,000 and less than or equal to $129,000 |
$50.10 |
Greater than $129,000 |
$69.10 |
Those beneficiaries that are not enrolled in Part D are not subject to this IRMAA surcharge.
For a full description of the IRMAA surcharge, how it is determined and definitions visit the Social Security Administration site. Additional information may also be obtained by reviewing the CMS Fact Sheet on “Medicare Premiums, Deductibles for 2011.”
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