CMS Medicare Update

CMS Medicare Update

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February 25, 2014
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PLEASE NOTE: If your 2012 Modified Adjusted Gross Income (as reported on your 2013 tax return) is $85,000 or less for an individual/ $170,000 or less for a married couple, this information does not affect you.
                            For more information please contact your local Social Security office.

In January of 2011, the Affordable Care Act established an income related monthly adjustment amount (IRMAA) under the Part D program (prescription portion of Medicare) which is known as the Part D-IRMAA.  The Part D-IRMAA is an amount added to the Part D monthly premium for individuals whose modified adjusted gross income (MAGI) exceeds certain threshold amounts.  The Social Security Administration has published a document which explains the rules for higher-income beneficiariesNote:  Members who are currently paying a higher premium than the minimum for their Part B coverage are the same members who will be affected by this Part D adjustment amount.

Members who are affected by this ‘IRMAA’ provision will be billed by the Social Security Administration/Medicare for this additional premium charge.  If billed, the affected member must pay this amount directly to that entity.  If the member does not pay this Part D-IRMAA amount, the State-sponsored Medicare Advantage with Prescription Drug plan (MAPD) will be terminated by Federal CMS and the member will lose his/her group health, vision and prescription insurance benefits.

Click here to read the Social Security Administration’s Medicare Premiums: Rules for Higher-Income Beneficiaries.