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Old 09-15-2015, 11:18 PM   #21
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Originally Posted by Animorph View Post
It's a short term hit, unless the SS COLA continues at 0% indefinitely. The Part B premiums will be set system wide to get the needed dollars, but will be the same for everyone (with steps for income levels). It's just that some people won't pay increases in 0% COLA years. When enough SS COLA finally hits, everyone will be paying the same amounts once again. It's not a case where the unfortunate 25%-30% see a 50% bump and then see future increases based on a percentage of that bumped amount. It's a spike, not a step.
Thanks for the clarification. That makes sense.

I did find the Kitces site interesting. Here is another link on the subject ,adding in social security, from that same site "And for those who still plan to delay Social Security benefits for many years to come, the reality is that delaying Social Security benefits is still so valuable, that even the projected Medicare Part B premium spike is still not nearly enough to deter the long-term value of generating Social Security’s Delayed Retirement Credits for those who anticipate living well past the breakeven period." https://www.kitces.com/blog/social-s...ess/#more-8566
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Old 09-17-2015, 06:25 AM   #22
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Another article on this topic:
Surprise! Your Medicare Part B premiums may increase by 50 percent in 2016
Quote:
Once COLAs resume — and they surely will — Part B premiums will “normalize” over time. People held harmless next year would pay more. And people not held harmless in 2016 would see their premiums decrease. After at most a few years, everyone without an income-based premium surcharge once again would pay the same Part B premium.

Lastly, there could also be some more financial heartburn from the Part B situation for other Medicare beneficiaries. The trustees’ report projected that the annual deductible for Part B Medicare expenses would also increase by 52 percent in 2016, from $147 to $223. People on Original Medicare would be hit by this, except for those with plan C and F Medigap policies, which pay that deductible.
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Old 09-17-2015, 07:13 AM   #23
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Although it is a 50% bump, if I read the article correctly, it is only $54.30 a month for someone making over $85K a year.

I really do not see the issue. It is a small pittance for someone making $85K a year. Medicare is still a terrific subsidy to retirees.

Of course, I would rather they increase the payroll tax on the workers after 2016...
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Old 09-17-2015, 10:07 AM   #24
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Quote:
Originally Posted by Senator View Post

Although it is a 50% bump, if I read the article correctly, it is only $54.30 a month for someone making over $85K a year.

Which is precisely why articles lead with that scary 50% Increase!! line. Nothing works better than fear to get people to respond to clickbait. Except perhaps outrage.

Quote:
I really do not see the issue. It is a small pittance for someone making $85K a year. Medicare is still a terrific subsidy to retirees.

ITA
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Old 09-17-2015, 10:21 AM   #25
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If you enjoy a larger than average retirement income, don't forget this bump in costs starting in 2018. It will be based upon your 2016 taxes:

https://www.linkedin.com/pulse/highe...afael-gonzalez

Quote:
These recent changes to Medicare’s income-related premiums will affect beneficiaries with incomes above $133,500 ($267,000 for married couples) by requiring them to pay a larger percentage of Part B and Part D program costs than they currently pay, beginning in 2018. "Beneficiaries with incomes above $133,500 and up to $160,000 ($267,000-$320,000 for married couples) will pay 65 percent of Part B and Part D program costs starting in 2018, up from 50 percent prior to 2018." As a result of this change, "monthly Part B premiums are expected to be $310 in 2018 for beneficiaries in this income group, rather than $238 that year, based on projections of Part B program costs from the Medicare Trustees."
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Old 09-17-2015, 11:53 AM   #26
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Originally Posted by Senator View Post
Although it is a 50% bump, if I read the article correctly, it is only $54.30 a month for someone making over $85K a year.

I really do not see the issue. It is a small pittance for someone making $85K a year. Medicare is still a terrific subsidy to retirees.
It is also $54.30/month for retired people who are deferring their SS start dates past 65. These people pay Medicare premiums directly, and are not eligible for the premium freeze.

In our case, we live on about $55k for a couple, quite a bit less than $170k trigger for a couple. We will pay the increase on my Medicare premium, but not my wife's, because she has started SS benefits and I haven't.
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Old 09-22-2015, 08:56 AM   #27
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2016 Medicare Advantage premiums are expected to see little change.
Quote:
According to the Centers for Medicare and Medicaid Services, average monthly premiums across the country will decrease by $0.31.
CMS also indicated that Medicare Advantage enrollment is expected to rise for the sixth straight year, and that more plans will offer supplements such as dental, vision and hearing benefits.
Source: http://lancasteronline.com/news/loca...9db2aba4f.html

However, this will come at the expense of higher cost sharing for some.
Quote:
An analysis of the Medicare Advantage program suggests pressure to keep premiums low may also be affecting out-of-pocket costs in that market.
In the ordinary Medicare Advantage plan, the number of zero-premium plans with an annual out-of-pocket cost maximum of $3,000 or less will fall 18 percent, to 299.
The number of zero-premium plans with an annual out-of-pocket maximum of $4,000 or less will fall 37 percent to 2,217.
Source: Medicare Advantage plan count rises | LifeHealthPro
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Old 09-23-2015, 12:42 PM   #28
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Originally Posted by Animorph View Post
When enough SS COLA finally hits, everyone will be paying the same amounts once again. It's not a case where the unfortunate 25%-30% see a 50% bump and then see future increases based on a percentage of that bumped amount. It's a spike, not a step.
I'm sure the unfortunate 25-30% will be okay with paying more for the same services because of the greater wisdom from our elected officials. I'm also glad the ACA is helping to keep medical cost in check so well. If not, I guess the increase would be 100% or more.
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Old 10-09-2015, 05:00 PM   #29
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I haven't seen this answered in any of the articles I've read on this increase, and haven't seen it in the thread.

Exactly when does the increase take effect?

I was planning on applying for SS at FRA next spring, but if the Medicare increase takes effect January 1st, it may be better to apply in December and take the small hit.

So - anybody know when?
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Old 10-09-2015, 05:10 PM   #30
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Originally Posted by Walt34 View Post
I haven't seen this answered in any of the articles I've read on this increase, and haven't seen it in the thread.

Exactly when does the increase take effect?

I was planning on applying for SS at FRA next spring, but if the Medicare increase takes effect January 1st, it may be better to apply in December and take the small hit.

So - anybody know when?
Under current law, you would need to have both Medicare and SS benefits start by November 2015 in order to be protected by the "hold harmless" provisions. However, nothing has passed yet, so this is all still up in the air.
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Old 10-09-2015, 05:14 PM   #31
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Ah, thanks, not the first time I misunderstood something. I'm on Medicare now but not SS yet.
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Old 10-10-2015, 02:27 PM   #32
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Kiplinger has a few ideas for avoiding the Part B increase (if one is announced) that may apply to some here.

Who Has to Pay the Hike in Medicare Premiums-Kiplinger

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Old 10-27-2015, 08:35 PM   #33
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According the this article the current tentative budget agreement might address this situation
"The budget agreement would extend the “hold harmless” provision of the Social Security Act in 2016 to those affected by the increase, so that they will pay $123.70 per month (including a surcharge) next year.

Budget Deal Spares Feds’ Pay and Benefits - Pay & Benefits - GovExec.com
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Old 10-31-2015, 02:21 PM   #34
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But on full retirement, assuming our AGI consists only of ordinary dividends, social security income and required minimum distributions, can medicare premiums still be deducted?

Or are they deductible only against self-employment income?
I sure hope they're deductible as Medical Expenses, because that's where I deduct them. DH and I are both retired with no wage income, self-employed or otherwise. It's only to the extent that they exceed a % of your AGI (7.5% for us since DH is over 65), but between all of our insurance premiums as well as unreimbursed medical and dental costs, we get some tax benefit from premiums paid.
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