The newly enacted "Patient Protection and Affordable Care Act" (Section 3308) provides for a reduction in the Medicare Part D premium subsidy for Medicare beneficiaries who earn a higher income.
The new provision parallels the Medicare Part B premium adjustments and the result is that people with an annual income over $85,000 (or over $170,000 for couples filing jointly) will pay a higher monthly Medicare Part D premium.
The increased premium will be a percentage based on the national base Medicare Part D premium ($32.34 for 2011).
The amount of the additional premium will be deducted directly from the beneficiaries Social Security check, regardless of the premium payment method chosen by the beneficiary. Medicare plans to release more information and guidance on the Part D Income Related Monthly Adjustment Amount (IRMAA).
|Individual tax filers with income:||Joint tax filers with income:||Premium Percentage ( $Amount *):|
|Equal to or less than $85,000||Equal to or less than $170,000||0% (no IRMAA)|
|Greater than $85,000 and less than or equal to $107,000||Greater than $170,000 and less than or equal to $214,000||35% ($12.00*)|
|Greater than $107,000 and less than or equal to $214,000||Greater than $214,000 and less than or equal to $320,000||50% ($31.10*)|
|Greater than $160,000 and less than or equal to $214,000||Greater than $320,000 and less than or equal to $428,000||65% ($50.10*)|
|Greater than $214,000||Greater than $428,000||80% ($69.10*)|
*The Centers for Medicare and Medicaid Services (CMS) released the actual dollar amount of the Medicare Part D Income-Related Monthly Adjustment Amount on 11/4/2010. See full press release here.