MAGI Cliff for Medicare

[HadEnuff]

While reading another thread, a discussion came up regarding what might be referred to as an MAGI "cliff", affecting the cost of Medicare, similar to, but not as steep as, the ACA cliff.

I am still 21 months from my 65th birthday, so I am currently keeping MAGI down for ACA reasons.

Under the current law, what parts of Medicare are affected by one's MAGI?

Do the premiums, and how they are affected, vary from state-to-state, like ACA?

Can anyone share how the costs vary, in their state, with changes in MAGI?

 

[meierlde]

While reading another thread, a discussion came up regarding what might be referred to as an MAGI "cliff", affecting the cost of Medicare, similar to, but not as steep as, the ACA cliff.

I am still 21 months from my 65th birthday, so I am currently keeping MAGI down for ACA reasons.

Under the current law, what parts of Medicare are affected by one's MAGI?

Do the premiums, and how they are affected, vary from state-to-state, like ACA?

Can anyone share how the costs vary, in their state, with changes in MAGI?

Go to the medicare.gov site and click on the how much medicare costs link for details (then parts B and D costs). Note that the income related premium increases in Medicare start at 85k/170k (single/married filing jointly). This affects part B and D in particular. The premiums are the same nationally.

 

[MichaelB]

It's not a cliff, more like a couple of steps. Medicare B has a basic premium, which then increases as one's MAGI rises.

Under the current law, what parts of Medicare are affected by one's MAGI?

Medicare B and D premiums

Do the premiums, and how they are affected, vary from state-to-state, like ACA?

no

Can anyone share how the costs vary, in their state, with changes in MAGI?

See this table https://www.medicare.gov/your-medicare-costs/part-b-costs/part-b-costs.html

 

[MBSC]

The Medicare Part B and Part D (drug) premiums can be impacted by a high income adjustment (IRMAA). Scroll toward the bottom of this website to view the 2017 Part B IRMAA premiums. Part B premiums do not vary by state. https://www.medicare.gov/your-medicare-costs/part-b-costs/part-b-costs.html

Starting in 2018, the high income IRMAA thresholds will be modified to those in the chart on this website. Medicare’s Income-Related Premiums Will Rise for Some Higher-Income Beneficiaries Beginning in 2018Â* | The Henry J. Kaiser Family Foundation

Part D IRMAA uses the same income thresholds. 2017 Part D IRMAA amounts: https://www.ncoa.org/wp-content/uploads/part-d-costs.pdf