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Medicare Half B Premiums Rise Modestly In 2019, Apart from For Hefty New Hit To Highest Earners

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The Services for Medicare & Medicaid Suppliers has launched Medicare Half B premiums for 2019, and the underside premium will improve modestly from $134 to $135.50 a month. However extreme earners are nonetheless getting used to an enormous bump in income-related surcharges that kicked on this yr. And the very highest earners are going by means of one different giant improve for 2019. That signifies that the wealthiest senior {{couples}} could be paying over $11,000 a yr in Medicare Half B premiums. Half B (the underside and the surcharge) covers docs’ and outpatient suppliers.

The CMS announcement comes merely after yesterday’s Social Security Administration’s COLA announcement: a 2.8% worth of residing adjustment for 2019. The frequent Social Security revenue for a retired worker will rise by $39 a month to $1,461 in 2019. The small improve in Half B premiums indicate most retirees will get the advantage of the Social Security COLA (Half B premiums are deducted from month-to-month Social Security checks).

Whereas most Medicare recipients will pay the model new $135.50 customary month-to-month premium, an estimated 2 million (3.5%) will pay a lot much less on account of a “preserve harmless” provision that limits positive beneficiaries’ improve of their Half B premium to be no bigger than the rise of their Social Security benefits.

Then there’s the 5% of Medicare recipients who should pay income-related surcharges. The graduated surcharges for high-income seniors kick in for singles with modified adjusted gross earnings of higher than $85,000 and for {{couples}} with a MAGI of higher than $170,000. An individual incomes higher than $85,000, nevertheless decrease than or equal to $107,000, will pay $189.60 in full a month for Half B premiums in 2019, along with a $54.10 surcharge. That’s barely up from 2018: $187.50 full in a month, along with a $53.50 surcharge.

By comparability, the wealthiest retirees – singles with $500,000 of earnings and {{couples}} with $750,000 of earnings — will see a 10.3% improve of their income-related surcharge from $294.60 in 2018 (as soon as they’ve been part of the greater-than-$160,000/$320,000 group) to $325 in 2019. Entire premiums for this group could be $460.50 a month in 2019 ($11,052 a yr).

The income-related premium surcharges, along with the hit to the model new $500,000-plus group, apply to Half D premiums for drug safety too.

Listed below are the official numbers from the CMS launch, what you’ll pay month-to-month for 2019, relying in your earnings, for individuals and {{couples}} submitting a joint tax return (the 2019 income-related surcharges are primarily based totally on AGI reported on 2017 tax returns):

 Specific individual return with earnings:  Joint tax return with earnings:  Earnings-related surcharge Entire month-to-month premium amount
 < or = $85,000  < or = $170,000  $0.00 $135.50
 > $85,000 and < or = $107,000  > $170,000 and < or = $214,000  $54.10 $189.60
 > $107,000 and < or = $133,500  > $214,000 and < or = $267,000  $135.40 $270.90
 > $133,500 and < or = $160,000  > $267,000 and < or = $320,000  $216.70 $352.20
$160,000 and < $500,000  > $320,000 and < $750,000  $297.90 $433.40
 $500,000 or further $750,000 or further  $325  $460.50
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