It’s over –the Annual Election Period – and done for this year. The commercials should stop soon and your “junk” mail should be less. Isn’t it great to have a personal agent to talk with so you don’t have to try to remember what the commercials said or read and study all that mail! (Those plans may not even be offered where you live. It’s general information that’s not tailored to you.) Yes, there will be changes next year – there are every year, right? Let’s talk about Medicare changes effective January 1, 2018. The Part A (hospital inpatient) deductible will change from $1316 for each benefit period to $1340 for each benefit period. The coinsurance per day of each benefit period days 61-90 will change from $329 to $335. The coinsurance per day of each benefit period days 91 and beyond will change from $658 to $670.
There are NO changes in Part B (doctor services). The Part B deductible of $183 will remain $183. There are NO changes in the standard Part B premium. Most people who are new to Medicare will pay $134 for Part B which is the same as in 2017. Your Part B premium is related to your income. Specifically, your modified adjusted gross income (MAGI) reported on your IRS tax return 2 years ago (2016). If you filed an individual tax return in 2016 and your MAGI was above $85,000, you will pay an “Income Related Monthly Adjustment Amount” – IRMAA. If you filed a joint tax return in 2016 and your MAGI was above $170,000, you will pay an additional amount. If you filed married and separate tax return in 2016 and your MAGI was above $85,000, you will pay an additional amount. Based on which income bracket you fall in and how you filed your tax return the additional amount you pay in 2018 may change. The amount you owe will change if you filed an individual tax return in 2016 showing MAGI above $133,500. This will also apply to you if you filed a joint tax return in 2016 showing MAGI above $267,000 and above $85,000, if you filed married and separate. The income brackets changed but the additional amount owed in each bracket stayed the same. If you pay more than the standard premium, these changes could cause you to pay more in 2018. Your Part D (prescription plan) monthly premium is also income related. If your income is above $85,000 filing individual, $170,000 filing joint or $85,000 filing married and separate, you will pay an income related adjustment amount. This additional amount is above your Part D (prescription plan) monthly premium. The income brackets are the same as those that apply to your Part B premium. This may not be good news or a very positive way to end this year but you need to be prepared. If you’ve got questions or concerns going into this new year, call me at 501-868-6650 and “Caroline, can we talk?”
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AuthorCaroline Beauchamp specializes in personalized life and health insurance solutions. Archives
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