Gail in Virginia Posted February 26, 2020 Report Share Posted February 26, 2020 If income for single person is above $87,000 for 2018, then in 2020 the medicare premiums increase from $144.60 to $202.40 (as long as income is below $109,000.) Does anyone know if the income figure is indexed at all for inflation, and what the amount for 2019 income would be to generate the additional premium cost? I have a client that is over by $2600 this year. I am thinking that even if it is indexed, it won't be by that much. Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 27, 2020 Report Share Posted February 27, 2020 Copied from Investment News: "For the first time in a decade, the income brackets used to determine Medicare premium surcharges for high-income retirees will be indexed to inflation starting Jan. 1. As a result, some retirees may experience a reduction in their Medicare surcharge costs next year. Beginning Jan. 1, the income related monthly adjustment amount brackets used to determine high-income surcharges for individuals and married couples will be indexed to the consumer price index based on the 12-month CPI change from September 2018 through August 2019. In August, inflation increased 1.7% over the previous 12 months, according to the CPI data released last Thursday. As a result, the income brackets used to determine Medicare surcharges in 2020 will increase by 1.7%, rounded to the nearest $1,000. In general, that means income tiers will increase by $1,000 to $3,000 for individuals and by $2,000 to $6,000 for married couples filing jointly, according to a new analysis by HealthView Services, a leading provider of retirement health care cost data for the financial services industry. Medicare premium surcharges for 2020 will be based on income reported on 2018 federal tax return." Therefore next year the IRMMA brackets will be indexed to the nearest $1,000 based on the change in CPI form September 2019 thru August 2020. 2 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 27, 2020 Report Share Posted February 27, 2020 (edited) Found this article published in Nov 2019: https://www.investmentnews.com/medicare-premium-increase-and-irmaa-surcharges-announced-for-2020-170646 Some excerpts include these quotes: "High-income surcharges will be adjusted for inflation for the first time in a decade." "For the first time in a decade, the income brackets used to determine those surcharges will be indexed to inflation starting Jan. 1. As a result, some high-income retirees may experience a reduction in their Medicare costs in 2020 compared to this year. Medicare premium surcharges for 2020 will be based on income reported on 2018 federal tax returns." "Currently, there are six income tiers that determine high-income surcharges for both Part B and Medicare D prescription drugs plans. The income thresholds that determine who pays the Medicare surcharges have been fixed at their current levels since 2011." "Income thresholds will be indexed to inflation in future years starting in 2021, except for the top-level income thresholds of $500,000 for individuals and $750,000 for married couples filing jointly, which were added in 2019. Those top tiers will be indexed to inflation starting in 2028." ETA - Was posting at same time. It seems I found a similar article from that same publication as cbslee with some information less specific, some more specific as to when indexing will occur but with no figures as to the actual effect on 2021 except to know that it will be indexed for all but those in the highest tier. Edited February 27, 2020 by jklcpa ETA 1 Quote Link to comment Share on other sites More sharing options...
Hahn1040 Posted February 27, 2020 Report Share Posted February 27, 2020 2 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 27, 2020 Report Share Posted February 27, 2020 ^ that's correct and Gail already has that info in her post for 2020. With the premiums based on a 2-year lookback and her asking about her client's 2019 income level being slightly over the threshold in that chart, I think she is asking what the premiums might be for 2021. 2 Quote Link to comment Share on other sites More sharing options...
Hahn1040 Posted February 27, 2020 Report Share Posted February 27, 2020 Right After I posted that I went down to cook dinner and I realized. "She already knows that- that is what she posted" I apologize. 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 27, 2020 Report Share Posted February 27, 2020 I read it over too, and I don't think anyone knows yet what the indexed amount will be for 2021. Not sure when that is announced but from cbslee's post, I'd assume sometime toward the end of the year. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted February 27, 2020 Author Report Share Posted February 27, 2020 Thanks all! Sounds like it is going to be close for this particular taxpayer, but no way to tell for sure. 2 Quote Link to comment Share on other sites More sharing options...
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