Have you ever heard of IRMA? She works for the Centers forMedicare and Medicaid Services. Her job is to check the Federal tax returns of individuals who show a (MAGI) modified adjusted gross income greater than $85,000 for an individual and $170,000 for a married couple filing jointly. She and the IRS work hand in hand to access those folks an additional premium due for their Part B (doctors) and Part D (prescription) premiums. The 2010 tax return is used for 2012 assessments. Then the 2011 tax return will be used for 2013 assessments.
IRMA’s official name is Income Related Monthly Adjustment. Here is the rule book IRMA uses to reel in those extra premiums:
Part B Premium Adjustments for 2012:
$85K or below for singles or $170K or below (married filing jointly) $99.90 per month
$85-$107K for singles or $170K-$214K (married filing jointly) $139.90 per month
$107K-$160K for singles or $214-320K (married filing jointly) $199.80 per month
$160k-$214k for singles or $320k-$428K (married filing jointly) $259.70 per month
Above $214k for singles or $429k+ (married filing jointly) $319.70 per month
Part D Premiums are also means tested and range from $11.60 to$48.10 per month in addition to what is paid to your Part D Prescription provider. For example, if you are paying $40 per month for your Part D coverage and exceed the income thresholds above, you will be assessed an additional premium that goes to the Centers for Medicare and Medicaid Services.
One of my members called and received a billing for both she andher husband with totals due of $1539 for her husband and $1231.20 for herself with no explanation on how these numbers were calculated. Once I reviewed the bill, I could break it out because I have a copy of IRMA’s rule book. The husband owed charges for 5 months June-October, and his wife owed for 4 months.
Not knowing their adjusted gross income, I realized that it wassomewhere between $320-$428k, because they each were assessed a $259.70 per month for their Part B premium and $48.10 per month premium assessment for their Part D coverage. So together the two numbers totaled $307.80 per month. Once I multiplied that monthly amount times 5 months for the husband and 4 months for the wife, their totals matched what was billed.
Unfortunately, they had no way of knowing what rules were used in the assessments. If you are being means tested, just refer to the above tables for 2012, and you should be able to figure out the math. IRMA does not provide the chart I’ve provided above.
This is another reason my new hit song, “The Medicare ConfusionBlues” will stay right up there as #1 on the Medicare Hit Parade.
Coach
