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View Diary: White House "No new Offers until GOP drops opposition to tax increases" (169 comments)

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  •  Question about Medicare premiums (3+ / 0-)

    I was looking at medicare.gov last week, and it says that beneficiaries who make $85,000 per year or more have to pay a higher premium for Medicare Part B. From the page I looked at, it looks like it is based on a recipient's tax return from 2 years prior (i.e. 2012 premium based on 2010 tax return). So does that mean the higher premium based on income only applies to people who are either still working, retired within the past two years, or earns at least $85,000 in investment income? From the way I read it, it would not apply to someone who is no longer working but has a lot of assets, correct?

    http://www.medicare.gov/...

    •  I don't know the details of that (1+ / 0-)
      Recommended by:
      mdmslle

      Some people get very nice pensions. Also, is that for a couple or a single person? One spouse could be working while the other was on Medicare.

      Economics is a social *science*. Can we base future economic decisions on math?

      by blue aardvark on Sat Dec 01, 2012 at 01:55:32 PM PST

      [ Parent ]

    •  Remember that non-Roth IRAs/401ks (1+ / 0-)
      Recommended by:
      blue aardvark

      are also reported and taxed as normal earned income.  Even with that, though, sounds high enough that the rule may not save a whole lot of money.

    •  I think it is income no matter where it comes from (1+ / 0-)
      Recommended by:
      blue aardvark

      income has to be reported, no matter what rate it is taxed at, including non-taxable income.

      You can't scare me, I'm sticking to the Union - Woody Guthrie

      by sewaneepat on Sat Dec 01, 2012 at 03:12:04 PM PST

      [ Parent ]

    •  It's all your taxable income. In retirement (9+ / 0-)

      people may have this coming from different sources, including SS, which is taxable for people of higher income also.  In other words, whatever your Adjusted Gross Income in any given year will determine what you have to pay for Medicare.  Most people only pay $99.00/ month for Medicare Part B (your doctors and other non hospital medical costs). Part A is free. Part C is Medicare Advantage, I think.  You don't have to get that. Part D is the prescription drug policy.  If you have a Med Advantage plan or another insurance plan that maybe you get to keep in retirement (like the State of NC has Blue Cross/Blue Shield), you may not need Part D.   Your policy holder will send you a letter each year telling you if your current policy has prescription coverage that's as good as Part D, then you don't have to buy Part D.   If they didn't send you this letter, then the cost of Part D will keep going up the longer you wait to sign up for it.

      It takes forever to figure all this stuff out.  If you like reading insurance forms, you will love early retirement.  I am speaking from experience, having just retired a few months ago. Please correct me, anyone, if I wrong on anything here.

      •  I forgot to say that, if you keep (7+ / 0-)

        working past your full retirement age (in my case it was 66), you don't have to pay for Medicare Part B at all, if you have insurance through work.  You will get Medicare Part A after you turn 66, though. Again that's free.  It becomes your primary insurance and your job insurance becomes your secondary insurance. So the latter should pay whatever Medicare can't.

        There are advantages to waiting until you are 70 to retire, because you get 8% a year more Social Security each of those years from your retirement age to 70 (at least that's what people my age retiring now get. I'm not sure what they did to younger people when they "fixed" SS the last time in the Reagan administration by raising the ages and lowering the benefits at that time -I hate them).

        But I couldn't make it to 70.  Too tired and too burnt out. I imagine I'm not alone.   Then of course, if you wait until you're 70 and then die at 71, it would not have been such a great idea.  But getting that much of an annuity boost over a period of four years is very hard to obtain otherwise.

    •  Premiums are already higher. (1+ / 0-)
      Recommended by:
      Zinman

      for both Part B and Part D.

      Formatting is weird, but here is link:

       http://www.rrb.gov/...

      2013 PART B PREMIUMS

      Beneficiaries who file an individual tax return with income

      Beneficiaries who file a joint tax return with income
          Income-related monthly adjustment amount     Total monthly Part B premium amount
      Less than or equal to $85,000     Less than or equal to $170,000     $0.00     $104.90
      Greater than $85,000 and less than or equal to $107,000     Greater than $170,000 and less than or equal to $214,000     $42.00     $146.90
      Greater than $107,000 and less than or equal to $160,000     Greater than $214,000 and less than or equal to $320,000     $104.90     $209.80
      Greater than $160,000 and less than or equal to $214,000     Greater than $320,000 and less than or equal to $428,000     $167.80     $272.70
      Greater than $214,000     Greater than $428,000     $230.80     $335.70

      “The future depends entirely on what each of us does every day.” Gloria Steinem

      by ahumbleopinion on Sat Dec 01, 2012 at 04:56:09 PM PST

      [ Parent ]

    •  I think it is based on your latest return (1+ / 0-)
      Recommended by:
      democrattotheend

      What happens is that you pay a higher premium for one year if you meet the requirements, then after a year your next tax return after the qualifying year is reviewed to see if you still have to pay a higher rate, or not.

      I had to pay the higher rate for one year, then it went down without my having to do anything about it. The additional amount due was not onerous.

      Eradicate magical thinking

      by Zinman on Sat Dec 01, 2012 at 05:15:55 PM PST

      [ Parent ]

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