Determining Medicare Premiums 2019
Retirement
If you’re planning to retire, or have already retired, it is important to understand the effects of your financial decisions on the Medicare premium calculations. Not everyone pays the same amount in Medicare premiums and your financial decisions play an important part in calculating the premiums.
The cost of Medicare B (medical costs) and D (prescription drug
coverage) premiums are based on your MAGI, or modified adjusted gross income. MAGI is
your adjusted gross income plus tax exempt interest income. If your MAGI exceeds $85,000 ($170,000 if
filing a joint return), then your premiums will be subject to the
income-related monthly adjustment amount (IRMAA).
Things to remember:
· Consult with your Ruggaard & Associates, Inc. financial advisor regarding how to determine your MAGI and your Medicare premiums.
· When planning with your Ruggaard & Associates, Inc. financial advisor, review the adverse consequences that excess IRA withdrawals or capital gains may have on your MAGI.
· Ask Social Security to adjust your premiums if you experienced a “life-changing event” which caused a significant reduction in income or a financial disruption in the tax year.
Below are two charts from Medicare.gov
explaining the premium calculations.
PART B Monthly Premium
File Individual Tax Return |
File Joint Tax Return |
File Married & Separate Tax Return |
You Pay In 2019 |
$85,000 or less |
$170,000 or less |
$85,000 or less |
$135.50 |
Above $85,000 up to $107,000 |
Above $170,000 up to $214,000 |
Not applicable |
$189.60 |
Above $107,000 up to $133,500 |
Above $214,000 up to $267,000 |
Not applicable |
$270.90 |
Above $133,500 up to $160,000 |
Above $267,000 up to $320,000 |
Not applicable |
$352.20 |
Above $160,000 and less than $500,000 |
Above $320,000 and less than $750,000 |
Above $85,000 and less than $415,000 |
$433.40 |
$500,000 or above |
$750,000 and above |
$415,000 and above |
$460.50 |
PART D Monthly Premium
|
File Individual Tax Return |
File Joint Tax Return |
File Married & Separate Tax Return |
You Pay In 2019 |
|
$85,000 or less |
$170,000 or less |
$85,000 or less |
Your plan premium |
|
Above $85,000 up to $107,000 |
Above $170,000 up to $214,000 |
Not applicable |
$12.40 + your plan Premium |
|
Above $107,000 up to $133,500 |
Above $214,000 up to $267,000 |
Not applicable |
$31.90 + your plan Premium |
|
Above $133,500 up to $160,000 |
Above $267,000 up to $320,000 |
Not applicable |
$51.40 + your plan Premium |
|
Above $160,000 and less than $500,000 |
Above $320,000 and less than $750,000 |
Above $85,000 and less than $415,000 |
$70.90 + your plan Premium |
|
$500,000 or above |
$750,000 and above |
$415,000 and above |
$77.40 + your plan premium |
For more information about Medicare costs, visit Medicare.gov.