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Old 03-19-2016, 04:42 AM   #41
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The legislation discussed in this thread goes into effect in 2018, and is based on your 2016 MAGI, which is your AGI plus tax exempt interest income. These are new (lower) income levels for Medicare are for the higher income folks who already pay increased premiums.

Currently a couple with $428,000 in income pay the highest part B and part D premiums over 3 times what someone at the lowest income range pays (couples under $170,000).

Starting 2018, this threshold drops to $320,000.

The threshold that used to be $320,000 drops to $267,000

This table of 2016 premiums and income thresholds shows the current means testing used and the range of premiums paid for Part B and the additional premium charge for part D above what is paid for your Part D policy. Page 8 in https://www.ssa.gov/pubs/EN-05-10536.pdf

To see the effect of the change for 2018 (in 2016 dollars), cross out the $428,000 in one level in the highest bracket and replace with $320,000. And cross out the second highest bracket at $320,000 and replace it with $267,000.

The individual thresholds are set at half the level for married couples.
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Old 03-19-2016, 07:26 AM   #42
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To put the prior post in perspective.

       % of average MAGI   
Single MAGI Married MAGI Annual cost  Single Married 
FromToFromToPart BPart D Part BPart DPart BPart D
- 85,000 - 170,000 1,461.60 497.52  3.4%1.2%1.7%0.6%
85,000 107,000 170,000 214,000 2,046.00 649.92  2.1%0.7%1.1%0.3%
107,000 160,000 214,000 320,000 2,923.20 891.12  2.2%0.7%1.1%0.3%
160,000 214,000 320,000 428,000 3,800.40 1,131.12  2.0%0.6%1.0%0.3%
214,000   428,000   4,677.60 1,372.32  2.2%0.6%1.1%0.3%
           

The table looks at the annual cost of Part B and Part D as a percent of MAGI based on the average MAGI for the bracket (other than the highest income bracket which is the % assuming they are at the bottom of the bracket since the top of the bracket is infinity). Also assumes the base cost of Part D is $41.46/month which is the high end of the range for 2016.
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Old 03-19-2016, 09:11 AM   #43
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This is the 2018 change I am talking about - note the changed (lowered) MAGI ranges compared to 2016 above.

       % of average MAGI   
Single MAGI Married MAGI Annual cost  Single Married 
FromToFromToPart BPart D Part BPart DPart BPart D
- 85,000 - 170,000 1,461.60 497.52  3.4%1.2%1.7%0.6%
85,000 107,000 170,000 214,000 2,046.00 649.92  2.1%0.7%1.1%0.3%
107,000 133,500 214,000 267,000 2,923.20 891.12  2.2%0.7%1.1%0.3%
133,500 160,000 267,000 320,000 3,800.40 1,131.12  2.0%0.6%1.0%0.3%
160,000   320,000   4,677.60 1,372.32  2.2%0.6%1.1%0.3%
           

The rest of the numbers are still 2016 as we don't know what the 2018 premiums will be.

Thanks for the table in an editable format!
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Old 03-19-2016, 02:24 PM   #44
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I'm still debating whether my husband should take Medicare part B. He has FEHB from the government.


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Old 03-19-2016, 02:39 PM   #45
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Quote:
Originally Posted by audreyh1 View Post
This is the 2018 change I am talking about - note the changed (lowered) MAGI ranges compared to 2016 above. ....
The percentages in the four right columns would change too.... the percentages would increase as the denominator decreases but the result would still be relatively modest.
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