Toni says . . .
Will a Medicare Advantage plan with prescription drugs prevent the “ extra ” Part D premium ?
Hello Toni :
I am turning 65 in October , self-employed and my income is over $ 250,000 . Recently I received a letter from the Social Security Administration ( SSA ) telling me that my monthly Medicare Part B premium of $ 170.10 would be doubled to $ 340.20 per month due to 2020 reported income . That was no surprise , but Social Security also said that the monthly adjustment for prescription drug coverage would be an additional $ 51.70 . What is this all about ?
I am in excellent health and take NO prescriptions . What happens if I do not apply for a Medicare prescription drug plan ? Do I still have to pay the “ extra ” $ 51.70 ?
What if a person goes the Medicare Advantage route instead of Original Medicare and a Medicare supplement ? Do they get to avoid the additional $ 340.20 per month for Part B and the $ 51.70 per month extra premium for a Medicare Part D prescription drug plan ?
— Mike from Oklahoma City , Oklahoma
Mike : Sorry , Mike , but you cannot avoid the additional IRMAA ( income related monthly adjusted amount ) premiums if your income is above a certain limit no matter if you are enrolled in Original Medicare and a Medicare Supplement or a Medicare Advantage plan with prescription drug . It is going to happen anyway !
Social Security bases your income on both you and your spouse ( if you are married ), whether your spouse is Medicare age or not . The MAGI ( modified adjusted gross income ) amount that is reported on your yearly income taxes is what triggers the IRMAA increase .
The bottom line is if your income is over these amounts , and you have your Medicare prescription drug plan from either a Medicare Advantage with Prescription Drug Plan ( Part C ) or Stand-alone Medicare Prescription Drug plan ( Part D ), you will pay the additional IRMAA premium , whether you are deducting your premiums from your Social Security check or paying direct to Social Security ( because you have not started receiving your Social Security check ).
If you are not enrolled in a Medicare Part D prescription drug plan , whether stand alone or with a Medicare Advantage plan , you will not receive the addition Part D IRMAA ( income related monthly adjusted amount ) premium . It is not a wise decision , however , not to enroll in a Medicare Part D plan simply because you are not taking prescriptions at the time you enroll in Medicare . Remember , if you are not enrolled in a Medicare Part D prescription drug plan at the right time , not only will you not have prescription drug coverage , but you will also receive
Toni King a Part D late enrollment penalty if you sign up guest columnist later .
That ’ s why at the Toni Says office , we advise everyone to enroll in a Part D prescription drug plan whether you are taking no prescriptions or a lot of prescriptions . No one wants an additional penalty .
Enrolling in a Medicare Advantage plan instead of Original Medicare with a Medicare Supplement / Medigap and a Medicare Part D plan does not keep Medicare or Social Security from charging the additional IRMAA premium for both Medicare Parts B and D . The IRMAA Medicare rule regarding the Medicare Part D additional IRMAA premiums went into effect on Jan . 1 , 2011 .
Because the yearly Medicare and You Handbook is generally mailed out before Oct . 1 , the costs and premiums for Medicare for that specific year are not included . You should look for annual Medicare costs and premiums to be released around Nov . 10 .
Toni King is an author and columnist on Medicare and health insurance issues . She spent more than 27 years as a top sales leader in the fields . For answers to Medicare questions , email : info @ tonisays . com or call 832-519-8664 .
22 • TIMELESS MERIDIAN