Doing the 2016 IRMAA Math

WCMason

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Assumptions:

1. The standard Part B premium, currently $104.90, is 25% of the full Part B premium of $419.60.
2. The standard Part B premium is increasing from $104.90 to $120.
3. The current IRMAA tiers are 35% ($146.90), 50% ($209.80), 65% ($272.70), and 80% ($335.70) of the full Part B premium.

Is it correct to calculate that the 2016 IRMAA amounts will be based on a full Part B premium of $480?

That would increase those paying $146.90 to $168, increase those paying $209.80 to $240, increase those paying $272.70 to $312, and increase those paying $335.70 to $384.

I've got lots of IRMAA clients eager to hear what they're going to pay next year and a newsletter article chambered and ready to fire as soon as I get firm numbers, but haven't found anything that indicates whether there will be a change to the current way IRMAA is calculated. Anyone have anything solid on this?
 
The math will hold true. What ever applied to this years numbers use the 120.70 as your base and do the math. I think you are probably correct, though I have not check your assumption.

Back to back apt day with a seminar thrown in for entertainment.
 
The math will hold true. What ever applied to this years numbers use the 120.70 as your base and do the math. I think you are probably correct, though I have not check your assumption.

Back to back apt day with a seminar thrown in for entertainment.
Thanks. I had seen $120 mentioned for Part B, but not the more exact amount of $120.70. Including that in my search provided a helpful article that does say the IRMAA will be based on the $120.70 (which is what the Part B premium would have been if there were a SS COLA next year). It also described a temporary (five year) $3 per month surcharge on all those not held harmless, putting the standard plus surcharge 2016 Part B premium at $123.70 for those not held harmless.

The source: Budget Deal Includes Protections for Medicare Part B Recipients : FedSmith.com
 
After reading this and some of the comments on the article, am I understanding it correctly, Federal employees and police offices, jobs where people don't pay into Social Security will not be heldharmless? So they will be paying the 123.70?
 
After reading this and some of the comments on the article, am I understanding it correctly, Federal employees and police offices, jobs where people don't pay into Social Security will not be heldharmless? So they will be paying the 123.70?
That is my understanding. The hold harmless rule applies only to those getting a Social Security check and not getting a COLA.
 
So, including the $3 surcharge, I'm seeing $123.70, $171.98, $244.40, $316.82 and $389.24?
Round those numbers to the nearest $.10 and that's what I get, too.

This article shows IRMAA going up to $512.80. I'm not sure what to believe. . . Who Wins and Who Loses From The Proposed Legislation For Medicare Part B Premiums? : FedSmith.com

The IRMAA figures in this article are based on proposed standard Part B premium of $159 which was knocked down to $120.70 by the legislation. I have not seen anything that indicates that those paying IRMAA are going to be based on the higher amount rather than the new standard Part B premium. In fact, the article I posted earlier says that the IRMAA figures will be based on the $120.70. But I am not confessing that I'm certain of any of this.

(Edit: I just noticed that we both linked to articles from the same publication four days apart. The one with the higher numbers is more recent. The one with the lower numbers says this: "Medicare beneficiaries who pay higher premiums due to their income level would see their premiums adjusted from the $120.70 baseline.")
 
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Round those numbers to the nearest $.10 and that's what I get, too.



The IRMAA figures in this article are based on proposed standard Part B premium of $159 which was knocked down to $120.70 by the legislation. I have not seen anything that indicates that those paying IRMAA are going to be based on the higher amount rather than the new standard Part B premium. In fact, the article I posted earlier says that the IRMAA figures will be based on the $120.70. But I am not confessing that I'm certain of any of this.

(Edit: I just noticed that we both linked to articles from the same publication four days apart. The one with the higher numbers is more recent. The one with the lower numbers says this: "Medicare beneficiaries who pay higher premiums due to their income level would see their premiums adjusted from the $120.70 baseline.")

In the comments of the second article, someone points out that (other than the $120.70), the rest of the numbers were based off of the pre-deal figures. I think WC is correct with the lower numbers
 
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