We’re always on the lookout for articles, websites and other sources of information for our clients and friends.
Coincidental to the Medicare Open Enrollment Period (ending Friday the 7th), I clipped a recent article that provided strategies for lowering income - even “tiny” changes - that can have a dramatic effect on Part B and Part D (Rx) premiums. (Credit to writer Laura Winters; WSJ 11/23-24, Pg. B5).
Consider Adjusted Gross Income (line 7 of your 1040) for 2018 determines Part B premiums for 2020 and, any surcharges for Part D coverage.
Then take for example, a married couple filing jointly. If their income was $174,000 or less, they would pay $144.60 monthly (for Part B) plus the cost of whatever Plan D they select.
But if their income was just $1 higher ($174,001), their Part B premium would increase to $202.40 and there would be a $12.20 monthly surcharge to their drug coverage.
There are four additional income “cliffs” for even higher earners; those brackets can be found at this link.
OK, hold your horses, Rupert! I won’t copy your article without permission. Feel free however, to sign up for my Tips here.
