How Much Will Medicare Cost in 2019 | Medicare Premium Brackets

Money isn’t everything, but it will be a huge factor in determining how much top-earning Medicare beneficiaries dish out in 2019.

Medicare beneficiaries should expect to pay out a bit more money to cover their Medicare premiums. This extra cost is being implemented because of a slight shift in the income bracket in 2018.

Most people pay a standard amount, however, if your gross income is over a certain amount, you may be subject to an Income Related Monthly Adjustment Amount (IRMAA).

Medicare determines the increase in cost by looking at the most recent IRS information. Please note, there is normally a set amount for the increase, but yours could be higher, depending on your annual income.

How Much Will Medicare Cost in 2019

Top Earning Medicare Beneficiaries Will Pay More in 2019

What you will pay for Medicare coverage is dependent on many factors, including your income

Changes are coming as Medicare health insurance comes with co-pays, deductibles, and premiums that are often being adjusted.

Due to those cost factors, the price you pay per year, can and likely will, fluctuate.

If you are someone who has a higher income, you will be required to adjust your monthly Medicare Part B and Medicare Part D premium to a higher amount.

In 2019, the Part A deductible is $1,364. The Part B deductible is $185. For most, Part A is premium for free.

For those who pay the premium, it’s now $437. The Part B premium is $135.50.

Higher-income beneficiaries pay higher premiums. However, this typically only affects less than 5% of Medicare beneficiaries.

Medicare Premium Brackets in 2019

At the beginning of 2019, individuals with incomes over $500,000 or couples earning $750,000 per year will be required to pay 80-85% of their Medicare Part B and D costs. This is referred to as the Bipartisan Budget Act of 2018.

Essentially, higher-income Medicare beneficiaries could possibly end up paying over 200% more for a Part B and Part D.

If you find that you are in the bracket of higher-income beneficiaries, it may be time to look a little deeper into your coverage. This will give you a better idea of how you may be affected directly, according to the plan you hold.

Part B Premium Brackets

As you may know, Part B is the plan that covers your outpatient care and physician services. Usually, the government covers a large portion of your costs, and the beneficiary pays on the lower end of the remaining amount.

However, if you are a higher-earning beneficiary, you will be required to pay more out-of-pocket. The amount is based on the amount of income you report to the Internal Revenue Service (IRS).

For example, an individual whose income is between $85,000 to $107,000, would acquire a Part B monthly premium amount that would be the standard premium, plus $53.50, equaling $187.50.

In the next bracket above that will be individuals with income between $107,000 to $133,500. Making the Part B monthly premium amount the standard premium, plus $133.90, equaling $267.90.

Individuals who have an income between $133,500 to $160,000, would be required to pay the standard premium, plus $214.30, equaling $348.30.

Part D Premiums

Part D helps pay for any medication you may need for any medical reasons. Like Part B, the government will usually cover a majority of the cost.

Leaving the beneficiary to pay the remaining balance. As a higher-income beneficiary, you will be required to pay monthly premiums, on top of an additional amount.

Premiums vary from individual to individual. Please keep in mind, the number of extra costs to your premium is determined by a base premium. The additional amount you pay will be added on top of the base beneficiary premium.

If you are enrolled in both Part B and Part D, you will receive a higher premium for both. If you have only of those plans, you will pay based on an adjusted income amount.

Avoiding the Extra Cost Inclusion

Are there ways to avoid this extra cost inclusion? Not quite. Although, you may have the opportunity to make the process a little simpler, and take some precautionary measures.

Higher-earning retirees have the option to attempt to forestall their increase in premiums before applying for a Medicare plan.

For example, if you receive income from a 401k, it does not count toward your gross income. Therefore will not inflate your Medicare premium.

Additionally, if you find that you are still concerned about paying higher premiums, you may look into and consider having a Health Savings Account (HSA). In order to qualify for an HSA, you must have a high-deductible health care coverage plan.

Any funds contributed to a health savings account are not taxed, as long as they are used solely for medical expenses.

It is important to note, that Medicare may affect your health savings account. For more information on HSA requirements and how Medicare enrollment may alter your plan, please call us today to speak to one of our agents.

Enrolling in Medicare as a Top-Earning Beneficiary

Enrolling as a top-earning retiree is really no more complicated than enrolling under other tiers or brackets. Seniors and retirees can enroll in Medicare once they turn 65 years old.

Those who currently receive Social Security benefits or the Railroad Retirement benefits, you are automatically eligible for Part A & Part B. If that applies to you, you won’t need to do anything else. Unless you plan to upgrade your Medicare coverage with additional plans.

If you have concerns or questions, we are always here to help make the process a little more stress-free for you. Contact us today, and we will set you in the right direction.

If you have questions about the premium you may be required to pay as a top-earning Medicare beneficiary, do not hesitate to give us a call so we can help get all of your questions answered and get you on the right track.

2 Comments

  1. Will the annual income be reviewed yearly, as income may change? Once I’m not working and collecting social security, my annual income will plummet- thank you

    • Hi Jeannie! Yes, your annual income should be reviewed by Social Security yearly, and they’ll adjust your income bracket. However, you can always be proactive and contact social security to make sure they’re aware.

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