UPDATED: Higher income individuals to pay more for Part D
October 21, 2010
Update 2/14/2011: See this post for more about the Part D premium charges, and a link to the table on the Social Security web site where you can figure out what your amount will be.
Update 11/4/2010: A reader called Social Security to find out what his IRMAA would be (see comment below) and was told that he needed to call Medicare to get that information. Maybe he got hold of someone who was uninformed about Social Security’s role in determining the fee? If anyone else calls Social Security and DOES get an answer, we would be very appreciative if you’d leave a comment here to let other readers know about it.
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We just posted this in a reply to a question from a reader, but it seems like it might be useful to many individuals and to benefits managers who may be getting questions from their retirees.
The healthcare reform bill (the PPACA) created a requirement that as of Jan 1 2011, higher income people will pay an extra amount in addition to their monthly prescription drug premium. This extra amount is called the Income Related Monthly Adjustment Amount (IRMAA). IRMAA will affect those people whose modified adjusted gross income is $85,000 or more (for singles) and $170,000 or more (for couples filing jointly) in 2009 and later.
The extra amount will be deducted automatically from Social Security checks.
We called Medicare to see if they could provide more specifics. They explained that individuals should call Social Security at 1-800-772-1213 to learn what the exact amount will be and to learn if they qualify for assistance with the IRMAA.
I e-mailed Medicare yesterday, asking what my 2011 Part D IRMAA would be. They told me to call SSA. I did. SSA told me to call Medicare. Our government in action.
That’s so awful it’s almost funny – almost. Thanks for checking up on the advice. I’m going to contact CMS and HHS to let them know what you found out. I don’t know if it will help, but I gotta take some kind of action!
GOD BLESS AMERICA…NOW I PAY MORE THAN I DID WITH PERSONAL INSURANCE THAT HAD PRESCRIPTION DRUGS …..
Hi Diann,
That must have been a great plan! Were the premiums subsidized in any way by an employer, or did you pay the entire cost yourself? What caused you to leave that plan and move to Medicare? Just curious – although I think the Part B and Part D “extra amounts” for higher income individuals are pretty steep at the upper levels, they still seem fairly comparable to most individual health care plans out there.
Sincerely,
Chris Holland
Extend Health