Retirement planning for Medicare costs

[Jerry1]

Quote:

Originally Posted by CRLLS You may not have Medigap coverage if your particular policy has a restricted medical provider list. But the doctor cannot refuse to see you based on the Medigap policy itself. In such cases, you will have to pay based on what Medicare deems fair an reasonable and would be your Medicare copay or Medicare deductible.

This is an important thing to keep in mind. Depending on finances, it may not matter, but virtually no Dr. will refuse to see you. They may not accept your insurance but that is a different (financial) matter. Certainly, finances matter for many, if not most, people, however, you insurance does not commit you to a specific course of action. Unfortunately, your finances may, but even there, you'd be surprised at how much a provider will discount a bill if insurance is not covering something. I'm thankful enough to have some good financial fortune and have not had a significant health situation but when a Dr. asks what insurance I have, I explain that I want what he/she thinks is best and I'll worry about whether or not the insurance will pay for it or not. Bottom line is that my choice of insurance does not dictate my medical care - only influences it financially.

As for Medicare Advantage plans, they are a buyer beware. Some are very well received while others are very restrictive. Personally, I think you're better off with original Medicare and adding on a supplemental plan. Maybe not the cheapest arrangement, but I think the one with the best coverage and good financial protection.

[Yarnstormer]

I think I read on here that your medicare payment is determined by your income the year you are 63? So maybe plan a low income year for 63?

[Yarnstormer]

https://www.investors.com/etfs-and-f...rt-b-premiums/

[wmc1000]

IRMAA is calculated based on the most recent filing year so for example, 2018 adjustments would be based on income reported on 2016 tax return. So, yes it is your age 63 filing year in most cases. IRMAA kicks in for married couples over 170K AGI and singles over 85K AGI -

It varies each year based on the prior filing years AGI. 2018 based onn 2016, 2019 based on 2017, etc.

[teejayevans]

Quote:

Originally Posted by wmc1000 IRMAA is calculated based on the most recent filing year so for example, 2018 adjustments would be based on income reported on 2016 tax return. So, yes it is your age 63 filing year in most cases. IRMAA kicks in for married couples over 170K AGI and singles over 85K AGI - It varies each year based on the prior filing years AGI. 2018 based onn 2016, 2019 based on 2017, etc.

Since it starts when you turn 65, 1st day of the month IIRC of your bday, if you’re bday is April or later, you could use previous year instead going back 2 years, or will they not accept your copy of tax return as proof and need IRS computers to give them information?

[SumDay]

Quote:

Originally Posted by teejayevans Since it starts when you turn 65, 1st day of the month IIRC of your bday, if you’re bday is April or later, you could use previous year instead going back 2 years, or will they not accept your copy of tax return as proof and need IRS computers to give them information?

I printed this off long ago, just in case: https://www.ssa.gov/forms/ssa-44.pdf

[wmc1000]

It is my understanding that SS calculates the IRMAA payment required, not the taxpayer.

https://secure.ssa.gov/poms.nsf/lnx/0601101031

[Bluwtrguy]

If your income is high enough to place your premiums in a higher category and then going forward you would qualify for lower premiums, is an adjustment made, or are you stuck for life with the higher premiums? With me working the first 3 months and getting paid for vacation and incentive plan payouts, I will have a lot of income the year I am 62. Much less going forward.

[MichaelB]

Quote:

Originally Posted by Bluwtrguy If your income is high enough to place your premiums in a higher category and then going forward you would qualify for lower premiums, is an adjustment made, or are you stuck for life with the higher premiums? With me working the first 3 months and getting paid for vacation and incentive plan payouts, I will have a lot of income the year I am 62. Much less going forward.

They recalculate every year, so if your income falls below the IRMAA threshold, you will pay the lower premium.

[braumeister]

Quote:

Originally Posted by MichaelB They recalculate every year, so if your income falls below the IRMAA threshold, you will pay the lower premium.

Which was a huge relief to me a couple of years ago!

[Gunny]

My wife and I will both transition to MEDICARE and Tricare for Life in ten years. Does anyone have this type of plan? I'm interested to know what to expect in terms of costs and available/allowed care by such a plan.

[braumeister]

Quote:

Originally Posted by Gunny My wife and I will both transition to MEDICARE and Tricare for Life in ten years. Does anyone have this type of plan? I'm interested to know what to expect in terms of costs and available/allowed care by such a plan.

Quite a few of us have exactly that. Who knows what changes will happen in the next ten years? That's a long time. As of today, you pay the going rate for Medicare Part B, but beyond that it will cost you very little. Generally a small copay for prescriptions, but that's usually all. You can see any doctor who accepts Medicare, which is the vast majority of them.

The only significant out of pocket cost for us was implanted lenses for cataract surgery. Mine cost nothing because they were standard. But DW had a high degree of astigmatism and needed toric lenses which cost $1,600 each.

Apart from that, our total cost has generally been less than $100 a year (after paying Part B).

[Gunny]

Quote:

Originally Posted by braumeister Quite a few of us have exactly that. Who knows what changes will happen in the next ten years? That's a long time. As of today, you pay the going rate for Medicare Part B, but beyond that it will cost you very little. Generally a small copay for prescriptions, but that's usually all. You can see any doctor who accepts Medicare, which is the vast majority of them. The only significant out of pocket cost for us was implanted lenses for cataract surgery. Mine cost nothing because they were standard. But DW had a high degree of astigmatism and needed toric lenses which cost $1,600 each. Apart from that, our total cost has generally been less than $100 a year (after paying Part B).

Thanks for the response. Looks like a manageable expense if congress does not make drastic changes to the plan.