Another Medicare Part B Increase for Higher Income Retirees
Once again, Washington is taking more from retirees with higher incomes. After a retiree reaches a certain income level, retirees have to pay an income-related monthly adjustment (IRMAA). Prior to this year, this adjustment started for individuals with $214,000 a year. Starting in 2018, the threshold goes down to $160,000. At that point the monthly price goes up nearly $300 over what less-wealthy folks are required to pay.
And, The Bipartisan Budget Act of 2018 added a new income tier and surcharge for individuals with income of more than $500,000, or joint filers with more than $750,000. Their surcharge increases to $321.40 compared to the regular $134 monthly premium.
With a hike in each of the last two years, you can see where higher income, Medicare-age Americans are destined to be spend about what they would from the private health insurance markets.