Medicare Question

[M16]

Can somebody explain why medicare premiums are based on your income? If you were/are an upper income earner you paid in a lot more than people on the lower economic scale. Then when you become eligible you get to pay an additional medicare tax of almost $500 per month. Isn't this backward.

[Huntingfool]

Only thing I can think of is that with higher income your social security payments are quite a bit higher than lower income payments -

[Mudslinger]

I have no idea about this as we had help in doing all the Medicare/Medicaide supplmental BS so we did not get a fine for failing to sign up for something late.

Retirement and doing all the retirement BS is just that BS and a PIA!

[Drycreek3189]

Only thing I can think of is that with higher income your social security payments are quite a bit higher than lower income payments -

If that’s true then guys that retired making minimum wage must have to pay the gubment instead of get a SS check.

[Johnny Dangerr]

I was so happy to get off Blue Cross I never noticed...

[Geezy Rider]

Wow, my premium isn’t anywhere near that. Why’s that. Are you still working?

[HogHunter34]

You have been around long enough to know the answer
You are making up for those who don’t pay or pay on the lower end of the spectrum
That’s also why my working premiums are high as well

[db@100]

You don't have to get Medicare. You can get an advantage plan. They are a lot cheaper. Be sure you check on what you are getting.

[M16]

Are you still working?

I've been chronically unemployed for the last ten years. But I'm fixin to retire.

[Pedernal]

I have no idea and wasn’t even aware that there were different premiums. I figured at some point the GOV would stop trying to bleed us dry. Why can’t we just all be equal

I will venture a guess that it’s probably because Medicare is fixing to go broke.

[Geezy Rider]

I've been chronically unemployed for the last ten years. But I'm fixin to retire.

I had no idea that they did this. It ain’t right.
Medicare premiums are based on your modified adjusted gross income, or MAGI. That’s your total adjusted gross income plus tax-exempt interest, as gleaned from the most recent tax data Social Security has from the IRS. To set your Medicare cost for 2022, Social Security likely relied on the tax return you filed in 2021 that details your 2020 earnings.

If your MAGI for 2020 was less than or equal to the “higher-income” threshold — $91,000 for an individual taxpayer, $182,000 for a married couple filing jointly — you pay the “standard” Medicare Part B rate for 2022, which is $170.10 a month. At higher incomes, premiums rise, to a maximum of $578.30 a month if your MAGI exceeded $500,000 for an individual, $750,000 for a couple.

You can ask Social Security to adjust your premium if a “life-changing event” caused significant income reduction or financial disruption in the intervening tax year — for example, if your marital status changed, or you lost a job, pension or income-producing property.

[Huntingfool]

You don't have to get Medicare. You can get an advantage plan. They are a lot cheaper. Be sure you check on what you are getting.

Advantage plans are awesome until you get sick and need them - proceed with caution trust me

[Huntingfool]

I've been chronically unemployed for the last ten years. But I'm fixin to retire.

The only way you are paying the highest medicare premium is all based off of your taxable income - so you must have some pretty good income coming from somewhere

[ladybluearm]

Advantage plans are awesome until you get sick and need them - proceed with caution trust me

You got that right, if you have to go in hospital or frequent doctors, it’s no bueno!

[Tmag]

Something I learned this year - when they ask for your Medicare Card and you have an advantage plan you need to give them both cards. Helps with billing correctly.