IRMAA Calculation

[somarco]

Does anyone know definitively how the IRMAA penalty is calculated?

Look at this table from SSA. Why does the IRMAA amount for B & D change each year? Is it because IRMAA is a percent of the B premium and the average D premium or is there something else in the mix?

SSA - POMS: HI 01101.020 - IRMAA Sliding Scale Tables

IRMAA Sliding Scale Tables

secure.ssa.gov

 

[kstein]

It's bracketed based on magi from 2 years ago. You go $1 over a bracket and you pay the amount shown in addition to Part D premium and supp. It would be the same amount as if you were $1 under a bracket.

 

[LostDollar]

It's bracketed based on magi from 2 years ago. You go $1 over a bracket and you pay the amount shown in addition to Part D premium and supp. It would be the same amount as if you were $1 under a bracket.

I think you missed his question. I think he is asking how the bracket amounts are computed.

 

[Truce]

The annual changes are based on the same formula used to determine the annual standard part B premium, just with different % for the surcharge folks (go ahead and call it a penalty if you want)

• Part B helps pay for your doctors’ services and outpatient care. It also covers other medical services, such as physical and occupational therapy, and some home health care. For most beneficiaries, the government pays a substantial portion — about 75% — of the Part B premium, and the beneficiary pays the remaining 25%.
  If we determine you’re a higher-income beneficiary, you’ll pay a larger percentage of the total cost of Part B based on the income you normally report to the Internal Revenue Service (IRS). You’ll pay monthly Part B premiums equal to 35%, 50%, 65%, 80%, or 85% of the total cost, depending on what you report to the IRS.

 

[LostDollar]

Caveat, not an agent.

I haven't the reading skill to go through this and find out what it says.

This may be a document that answers op's question.

Federal Register :: Request Access

(and a note, IRMAA is a premium adjustment, not a penalty.)

 

[GoPokes]

Caveat, not an agent.

I haven't the reading skill to go through this and find out what it says.

This may be a document that answers op's question.

Federal Register :: Request Access

(and a note, IRMAA is a premium adjustment, not a penalty.)

I know you don’t make the titles…but even as an “adjustment” it still looks a lot more like a hidden tax…

 

[Yagents]

The annual changes are based on the same formula used to determine the annual standard part B premium, just with different % for the surcharge folks (go ahead and call it a penalty if you want)

• Part B helps pay for your doctors’ services and outpatient care. It also covers other medical services, such as physical and occupational therapy, and some home health care. For most beneficiaries, the government pays a substantial portion — about 75% — of the Part B premium, and the beneficiary pays the remaining 25%.
  If we determine you’re a higher-income beneficiary, you’ll pay a larger percentage of the total cost of Part B based on the income you normally report to the Internal Revenue Service (IRS). You’ll pay monthly Part B premiums equal to 35%, 50%, 65%, 80%, or 85% of the total cost, depending on what you report to the IRS.

See, part B is funded by govt, and us how they are justifying making all med supps guar issue under new cms non discrimation ruling

 

[kgmom219]

They make it up.

In theory, its supposed to be the top 7% of income earners this year. I think when it started it was the top 2%.

And singles, widows/widowers get totally screwed.

"I get it. But unfortunately, Congress doesn't call me before they do this stuff, so there is nothing I can do except help you with the appeal."