Medicare IRMAA 2019 – Part B and Part D Premiums

I’m going to talk about the 2019
Medicare Part B and Part D premiums and specifically the adjusted premiums if
you’re making too much money I’ll also show you how to appeal it if things have
changed so stay tuned I’m going to talk about 2019 premiums for Medicare Part B
and Medicare Part D and it is certainly an important topic most people don’t
realize that different people paid different things for their Part B or
their drug coverage Part D let me show you exactly how it all functions I’m
going to show you how to appeal it if you don’t agree with it and kind of what
to understand so that you don’t have any surprises now this is more commonly
known as Burma and Armas stands for income related monthly adjusted amount
so it’s a determination based on your income how much more you’re gonna pay
for your Medicare and it can be significant so I’m gonna show you
exactly how much it is I’m going to show you how to handle it and if you stay
with me at the end I’m going to show you where to download a copy of what I’m
gonna go over right now I’ll show you where to get a copy of the
appeal form if things have changed for you and a brochure that tells you
exactly how to handle everything so stick with me I’ll show you where to get
all that very easily you can download it right now this is what we’re going to go
over right now and this is a form put out by Social Security that shows us
what arm is all about so it’s pretty interesting and certainly something we
need to understand so rules for a higher income beneficiary so if you are a
victim of your own success and you’re making more than you should you’re gonna
pay more for Medicare and again it can be significant so if you have higher
income the law requires adjustments to your
monthly Medicare Part B and Medicare prescription drug coverage which is Part
D higher income beneficiaries pay higher premiums for Part B and prescription
drug coverage is this affects less than five percent of people with Medicare so
most people don’t pay a higher premium and then they kind of they’re trying to
be nice and this brochure on how they present this I have not I don’t know
that that five percents an accurate number or not but we’re going to go with
what they’re telling us so how does this affect me if you have higher income
you’ll pay an additional premium for your Part B and your prescription drug
coverage we call the additional amount income related monthly adjustment amount
here’s how it works so Part B helps pay for your doctor services and outpatient
care so this is not the hospital this is the Part B where you have a normal
monthly premium it also covers other medical services such as physical
occupational therapy so forth and so on and the government pays a substantial
portion of the Part B premium now I have not seen this percentage before but
again we’re going to go with what they’re telling us about seventy five
percent so they’re saying for most everybody the government’s going to pay
75% of the cost of Part B and we’re only paying 25% of the cost of Part B so if
you’re a higher income beneficiary you’ll pay a larger percentage than that
25% of the total cost of Part B based on the income you reported to the IRS
you’ll pay monthly Part B premiums equal to either 35 percent 50 percent 65 80 or
85 percent of the total costs as you can see it’s going to be significant it’s
going to be multiple times what the average person is paying for their
Medicare Part B depending upon what you reported in the IRS Medicare
prescription drug coverage helps pay for prescription drugs most beneficiaries
the government pays the major portion of the total cost the beneficiary pays and
rest doesn’t give us a percentage here prescription drug plans cost vary
depending upon the plan so there are different choices on drug plans that can
change the premium as well so let’s get into the meat of it how does Social
Security determine if I must pay higher premiums and this is where it gets a
little complicated so determine if you’ll pay higher premium Social
Security uses the most recent federal tax return that the IRS provides to them
so if you must pay higher premiums we use a sliding scale to make adjustments
based on your modified adjusted gross income so you’re Maggie and if you don’t
know to find your mag in your tax returns you
can ask your accountant what is my Maggie for what particularly R and your
Maggie is your total adjusted income and tax-exempt interest income if you file
your taxes as married filing jointly and your Maggie is greater than one hundred
and seventy thousand dollars so if you’re married and you file jointly and
your Maggie is more than hundred seventy thousand dollars you’re gonna pay higher
premiums for your Medicare Part B and your prescription drugs and it just goes
up from there so if you’re significantly higher than 170 you’re gonna pay
significantly higher in your Medicare if you file your taxes using a different
status and your Maggie is greater than eighty-five thousand so if not married
filing jointly if it’s single or whatever else it may be the line is 85
thousand so you’ll see where that breaks down here in just a minute
if you must pay higher premiums we’ll send you a letter with your premium
amount and the reason for our determination so they’re gonna explain
it to you on why you’re going to do that so which tax return does Social Security
use and again this is where it gets a little complicated to determine your
2019 income related monthly adjustment amount we use your most recent federal
tax return that the IRS provides to us generally this information is from a tax
return filed in 2018 for tax year 2017 so generally it’s a two year look-back
because that’s all they have information on so you obviously haven’t filed likely
your 2018 taxes in the beginning of 2019 so whatever they have the most accurate
data usually it’s a two year look-back sometimes the IRS provides information
return file to 2017 for 2016 so it might be a three-year look-back if we use 2016
tax your data and you file a return for 2017 or did not need to file a tax
return for tax year 2017 call us or visit Social Security office and we’ll
update our records so they seem to present that they make it very easy for
you to kind of discuss with them changes but it’s not necessarily that simple
I’ll show you exactly how to do it in just a minute if you amended your tax
return and it changes the income we count to determine the income related
monthly adjustment amount let us know and we’ll make adjustments so they’re
there they’re certainly presenting the fact that they’re easy to work with now
keep in mind we’re talking about Social Security who’s working with the Internal
Revenue Service so may not be quite as easy as what it’s showing here what if
my income has gone down and that’s where most people have a problem they made
significant income two years ago now you’re retired and you’re not making
significant income that you were two years ago but you’re still gonna get hit
with this increase in your Medicare premiums because of what you made two
years ago so if your income has gone down due to any of the following
situations and the change makes a difference in the income level we
consider contact us to explain you have new information and may need a new
decision about your income related monthly adjustment amount your herma so
if you in the last couple of years got married divorced or became widowed you
or your spouse stopped working or reduced your hours which is most of the
cases where you retire you no longer work you or your spouse lost income
producing property because of disaster or event beyond your control not really
sure if you sold the income property that that would play any part in it you
or your spouse experienced a scheduled cessation termination reorganization of
an employers pension plan so if your pension plan blew up you know that
income anymore you or your spouse received a settlement from an employer
or former employer because of employers close your bankruptcy or reorganization
so in other words if your income significantly changed from the two year
ago tax return to now you do have some ability to get things done so if any of
the above applies to you we need to see that documentation so I’m gonna show you
exactly how to do that here in just a second
and again you can download this brochure as well so you’ll have all this with you
so let’s talk about the actual adjustments and what they mean to your
pocketbook so monthly Medicare premiums 2019 the standard Part B 2019
is a hundred and thirty five dollars and fifty cents that’s pretty good deal that
is absolutely a pretty good deal so that is if you are below that 170 number or
if you’re below that 85 number if you’re not married filing jointly so you can
see here the first one is that one hundred thirty five fifty if you’re
below those numbers now the first increase is if you are not filing
jointly and you’re between 85 and 107 or if you’re filing jointly and you’re 172
214 it’s gonna add fifty four dollars and ten cents to your Medicare Part B
it’s going to add twelve dollars and forty cents to your drug plan
individuals in the next category we’re not filing Jolie 107 to 133 or filing
jointly 214 to 267 it’s gonna add one hundred and thirty five forty two your
Part B premium can add 3190 to your drug plan that that’s pretty significant
that’s almost doubling the cost of your drug plan and next category not filing
Jolene 133 five to 160 or jointly 267 to 320 it’s going to add two hundred and
sixteen dollars a month to that 135 fifty premium significant you can add
fifty one forty to your drug plan so we don’t stop here got a couple more tears
and we need to go through so not filing jointly 162 500 or jointly 320 to 750
it’s gonna add to ninety seven ninety two your Part B premium seventy dollars
and ninety cents to your drug plan and the final category is if your equal to
or above a half a million dollars not filing jointly or 750 or above filing
jointly it’s gonna $325 to your Part B premium seventy seven forty two your
drug plan so you can see so it’s gonna take your if you max out here and above
750 filing jointly it’s gonna take your 135 and AD 325 to it so 460 is what your
Part B premium so it is significant but again it’s not you know outrageous it’s
just a significant increase versus other folks paying less than that which is a
whole different story so if you
married and lived with your spouse at some time during the taxable year but
filed separate tax returns this chart would apply to you so you’re welcome to
look through this if that’s the case that you might be in but what we need to
do now is what if I disagree so if your income has changed or they send you a
letter that you don’t think is correct based on the information that they have
from two years ago or maybe even three years ago then we need to appeal it and
very easy to do so I have all this information for you and I’ve got a lot
of other information on my website so make sure you know how to get back here
because there will be other things that you’re going to need in the future if
you go to Medicare on you’re simply first thing you can do here and
obviously what I do is I help people with their Medicare supplement plans
that’s how I make my living I’m an insurance broker I’m in 49 states and I
have access to pretty much everything out there so I’m happy to help you with
your Medicare supplement I’d appreciate it if you allow me to help you with your
Medicare supplement and then I’ll help you with all this other stuff as well as
we keep going so you can get an easy quote right off the bat for a Medicare
supplement you can also get a free discount prescription drug card you just
click right there download right on the computer I get great feedback on this so
it can absolutely save you some money on your prescriptions on a regular basis
and then if you go into the Resource Center it’s gonna drop down you click on
guides and forms and it’s gonna bring you into guides and forms and I have
pretty much everything that you might need here and I have categories so you
can see on starting Medicare drug plans karma if you click on arma it’s gonna
bring up those three brochures that you need going forward and there’s other
things you can find here if you’re still working and you’re past 65 and you’re
gonna retire and come into Medicare a lot of people don’t know this either you
need to show proof of credible coverage that you have currently so there’s this
form which is right here the employer coverage form that your employer needs
to fill out that you need to give to Social Security when you’re starting
Medicare you need to do this early because it can take some time to get
back at force and all wait till two weeks before you’re gonna retire
to Medicare get this done two months ahead of time and while you’re also in
here you can get a copy of my book I have a book that pretty much covers
every topic in Medicare and then everything else that’s here is for you
to use so you can get that thermo reimbursement form you can get the
brochure that shows you how to appeal everything and then the whole breakdown
on everything that you need to know about the monthly adjustment for your
Part B premiums now if you’d like to see more of my videos and I have tons of
videos I try to make it easy for you to find it so if you go to WWE Studios comm
brings you right to my youtube channel makes it very easy to find whatever
topic you’re looking for whatever you’re looking for just use the magnifying
glass at the top put it in it’ll bring up the videos that relate to that topic
so whether it’s supplements drug plans Part B Part A Part C and whatever it may
be it’ll bring up whatever videos relate to
that topic makes it easy for you to use so I hope you found this information
helpful anything I can do is send me an email I’m happy to answer any questions
get you through whatever you may need to get through and again I certainly would
appreciate it if you allow me to help you with your Medicare supplement plan
and we will absolutely get you the best value in whatever zip code that you live
in and that’s what we do all day long is just help people get through Medicare so
I hope you found this helpful and I hope you have a fantastic day


Thanks for your videos Keith. I am currently 62 years old, but I have been watching the videos in preparation for when I need to be on Medicare. Will be definitely giving you a call when the time comes. Thanks again!!

Thanks for all you do Keith.
My IRMAA experience: yes you can and should contest their decision if it raises your rates, but there are some pitfalls. Perhaps I could have done everything by mail, but I did not so I can't say if that would have been easier. The system is somewhat rigged to get you to accept the higher premiums because of the time you need to spend. I was not allowed to make an appointment for IRMAA. I had to go to the Social Security office and sign it at a kiosk. There is no IRMAA select-able item on the machine, but I got a number and waited about 2 hours to be called. If you're lucky the agent that calls you will be a specialist and can help with IRMAA. If not (as was my case) you'll wait another hour or two to see a specialist. From there you'll likely get it taken care of if you have enough supporting evidence, which I did. Since I retire in 2019 I will make a lot less money. They accepted a spreadsheet projection of what I expected to make in 2019 along with supporting documents from my pension plan. It took about 2 weeks for them to notify me by mail with the new lower rate. So, its a pain in the **s but definitely worth it.

Thank you so much!!! I kinda understand this since I have this. But still unclear with all these documents. I'm on disability and I'm only 36 :/ . Every time I go to the doctors I hear the nurses at the desk saying to me I have both coverage and have part d. My disability check went down and now pay for some of my medication. I just fill out whatever forms they give me. Just wondering how I can optimize my situation. Great video!!!!

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