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Tag: Medicare Part B

  • What is the Medicare Part B IRMAA?

    What is the Medicare Part B IRMAA?

    What is the Medicare Part B IRMAA?

    Original Medicare Part B, sometimes referred to as medical insurance, helps to cover the cost of outpatient care, ambulance services, mental health services, durable medical equipment, and other medically necessary doctor’s services.

    For those enrolled in Original Medicare, the monthly premium for Original Medicare Part B is standardized. The standard premium (which most beneficiaries will pay) in 2023 is $164.90.

    For individuals with a higher income, a charge called the IRMAA (Medicare Income-Related Monthly Adjustment Amount) is added to the Medicare Part B premium.

    The IRMAA is determined annually by the Social Security Administration. They calculate whether or not you have to pay the IRMAA based on your annual income reported on your taxes from 2 years prior.

    In 2023, those who filed single and made more than $97,000 annually or those married, filing jointly making more than $194,000 annually will have to pay the IRMAA. IRMAA is a different amount based on your income from there, and individuals can pay up to $560.60 monthly for Original Medicare Part B. The chart below shows how IRMAA increases across the income brackets.

    If you feel the Social Security Administration’s tax amounts may need to be updated or corrected, you can file an appeal to have your IRMAA charge reduced or eliminated. Also, if you have a sudden life change affecting your annual income, this is another reason for filing an appeal. After receiving your notice of the change, you have 60 days to file an appeal.

    Seniorstar Insurance Group can assist in understanding these charges or answer any of your Medicare questions. Don’t hesitate to call us and reach out at 844-779-5010 or visit seniorstargroup.com for a no-cost, no-obligation coverage review.

  • What is the Medicare Part B Late Enrollment Penalty

    What is the Medicare Part B Late Enrollment Penalty

    What is the Medicare Part B Late Enrollment Penalty

    Suppose you don’t enroll in Original Medicare Part B during your Initial Enrollment Period (IEP) and do not have credible coverage through you or a spouse’s employer or are eligible for a Medicare Savings Program. In that case, you will have to pay the Part B premium penalty. This penalty is 10% of the Part B Premium for each 12-month period that you delay enrollment in Medicare Part B.

    You will have to pay this penalty monthly as long as you are enrolled in Medicare. However, if you are enrolled in Medicare because of a disability and are under age 65 when you turn 65, the penalty will go away.

    Calculating the Penalty

    Calculating the Part B Late Enrollment Penalty can be simple. Let’s do an example:

    In this example, let’s say you have delayed enrollment for five years and did not have employer-sponsored coverage. This would make your monthly premium 50% higher ( 5 years x 10%).

    In 2023, the Medicare Part B Premium will be $164.90.

    Base Premium + ((.10 x Years of Delayed Enrollment) x $164.90) = Your Total Monthly Premium

    $164.90 + ((.10 x 5) x $164.90)

    $164.90 + (0.50 X $164.90)

    $164.90 + $82.45

    $247.35

    So, you would pay $247.35 each month, with $82.45 as the penalty.

    If you need help choosing Medicare coverage, feel free to reach out to Seniorstar Insurance Group at 732 658 5100. We can help you evaluate your options like Original Medicare Parts A & B, Medicare Advantage (Part C), Medicare Part D Prescription Drug Plans, and Medicare Supplements.