Medicare Premiums for 2020 Announced
The Centers for Medicare and Medicaid Services announced that Part B premiums will be increasing next year by $9.10 per month. That’s an increase of 6.7%, which is a big jump compared to the modest 1.1% increase last year. Part B base premiums will be $144.60 per month, up from $135.50 in 2019. The IRMAA (Income-Related Monthly Adjustment Amount) surcharges for higher-income beneficiaries are also going up.
The IRMAA surcharge is based on your Modified Adjusted Gross Income (MAGI), which is your Adjusted Gross Income plus tax-exempt interest. The income levels are based on your last filed tax return, so there is a two-year look back period.
There are a few bits of good news amid the increases though. Beginning in 2020, all but the top IRMAA income tier will be indexed to inflation. The top income tier (above $500,000 for individuals and $750,000 for those Married Filing Jointly) will be indexed to inflation beginning in 2028. The income tiers have not been adjusted since 2011, so more people have been subject to IRMAA surcharges over the years. Indexing the tiers with inflation could lower the number of people paying the surcharge. Another bright spot is that Part D IRMAA surcharges actually decreased slightly from 2019 levels.
If you have had a life-changing event that caused your income to decrease, like a change in your work or marriage status or the involuntary loss of income-producing property, you can appeal the surcharge. You can submit a Medicare IRMAA Life-Changing Event form or visit a Social Security office to provide documentation of the event that caused your income to decrease.
The government Medicare website provides more information about IRMAA surcharges. You can also call Medicare at 1-800-MEDICARE to learn more.
If you have had a life-changing event and need to appeal your IRMAA surcharges, complete and submit Form SSA-44.
You can also call your local Social Security office to schedule an interview to discuss your situation and see what information you will need to provide.
Changes to Your IRMAA
Your IRMAA situation can change every year, so even if you are subject to it one year (for example, your income spikes because you sold your home or business), you may not have to pay it the following year.
It can be important to manage your retirement income to control your IRMAA tier, so consider using Roth IRAs and Health Savings Accounts strategically to supplement income without increasing your MAGI.
Qualified Charitable Distributions from your traditional IRA can also help control your income.
What options are right for you?
We’ve heard many of our clients’ concerns about how to make the best choices for Medicare and when to file for Social Security. These decisions can be overwhelming, and government websites do little to help break down the information in a meaningful and easy way.
• Do I need Medicare if I’m still working?
• Should I make changes during Medicare’s Annual Enrollment Period?
• What’s IRMAA and how can I avoid it?
Get your questions answered at our biannual workshop.
You may still need help optimizing your Medicare and Social Security. We understand the need for clarity so we hold an biannual workshop to answer your questions.
Please take a moment to check out our video showing our past workshop held at Ballast Point Miramar.
platt wealth management
Tracy is the Director of Financial Planning at Platt Wealth Management, where she creates customized financial plans. She specializes in retirement planning, Social Security and Medicare planning.
United health care
Diane Gaswirth helps consumers simplify Medicare to make the choices best for their healthcare. She is an accomplished leader in health plan selection at UnitedHealthcare.
Where is the Workshop?
To help make these confusing topics easy to digest, we host our workshops somewhere fun. Our last workshop was held at Ballast Point Brewing Miramar where participant enjoyed the open patio and delicious award-winning beer.
What better place to talk over Medicare and Social Security than over tasty pub
snacks with informed experts? Get your facts and your fun together.
Many participants extended the afternoon into evening with a complimentary tour of the Ballast Point brewery.
- 30 minute tour.
- 150-barrel brew house, cellar, lab.
- Guided tasting.
- Financial knowledge and a commemorative beer glass.
Sign up here to receive an invitation for our next Medicare and Social Security Workshop.
Reserve Your Spot
Join us for a fun afternoon. Get your questions answered while sampling a selection of hors d’ oerves and drinks. Let us know if you would like to bring a friend or family member in the guest box.
Platt Wealth Management offers financial plans to answer your important financial questions. Where are you? Where do you want to be? How can you get there? Our four-step financial planning process is designed to be a road map to get you where you want to go while providing flexibility to adapt to changes along the route. We offer stand alone plans or full wealth management plans that include our investment management services. Give us a call today to set up a complimentary review. 619-255-9554.