What high-income Medicare beneficiaries will pay for 2021 coverage

Medicare beneficiaries who pay extra for coverage because of higher incomes should be aware that these monthly surcharges are climbing in 2021.

With the standard premium for Part B (which covers outpatient care) now set at $ 148.50 next year, these so-called monthly income-related adjustment amounts, or IRMAA, will translate to around 8%, or 5 million, of the 62.8 million Medicare beneficiaries. pay between $ 207.90 and $ 504.90 for this coverage. (See the table below.)

In 2021, the adjustments will apply to individuals whose modified adjusted gross income is greater than $ 88,000; for married couples who file a joint tax return, this amount is $ 176,000.

For Part D prescription drug coverage, the additional amounts range from $ 12.30 to $ 77.10 with the same income thresholds applied. This is in addition to any premium you pay, whether through a stand-alone plan (whose premiums vary) or through an Advantage plan, which typically includes drug coverage.

High income beneficiaries have paid more for Part B since 2007 and for Part D since 2011. Typically, your tax return from two years earlier is used to determine if you are subject to the supplements, as it is. this is usually the last available statement. So for 2021, that would be your 2019 return (which was due this year).

If your income has dropped and is not yet reflected on a tax return, you can ask the Social Security Administration to reconsider. Events that may justify reducing or eliminating IRMAA include marriage, death of a spouse, divorce, loss of pension, or the fact that you have stopped working or reduced your hours.

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As long as you have one of the qualifying reasons, most of the time it is adjusted, said Elizabeth Gavino, founder of Lewin & Gavino and independent broker and general agent for Medicare plans.

You will also need to provide supporting documents to justify your appeal. Suitable proof can include a letter from your former employer (if you are no longer working) or something similar that shows evidence of reduced earnings.

If your efforts don’t work, you can appeal the decision to an administrative judge, although the process can take time and you will continue to pay these surcharges in the meantime.