Tax on Medicare Supplement Plan F? What is IRMAA?
Tax on Medicare Supplement Plan F?
If you’ve listened to the news at all lately, I’m sure you’ve heard some talk about future changes in Medicare. There are many proposals out there that seek to help Medicare beneficiaries in keeping costs down. However, some say that there are also proposals being made that would work against these seniors. One in particular would impose an extra 15% tax on those who have selected a Medicare Supplement Plan F or C. These plans cover all deductibles and co-payments for doctor and hospital visits. The basis of this proposal is that people that choose these plans are not contributing towards health costs as much as those who aren’t on a Plan F or C. To me, it sounds similar to the concept of the “Cadillac Tax” that is scheduled to take effect in 2018 for certain plans under the Affordable Care Act.
What in the world is IRMAA?
Do you make over $85,000 (single)/$170,000 (married) per year? Did you know that if you're considered a high income earner you could be assessed an Income Related Monthly Adjustment Amount (IRMAA)? This can be a shocking realization once discovered. The initial determination for an IRMAA will be based on the tax return from two year’s prior (so for this year, it would be based on their 2103 tax return). If you have experienced a life-changing event such as divorce, death of spouse, work reduction or stoppage, etc., there is a form you can fill out to let Social Security know about this life-changing event (documented evidence required). Social Security will perform a review to see if you initial determination for the IRMAA needs to be adjusted. There are certain time frames this appeal must fall into and that is outlined in the initial letter from Social Security.
Medicare Supplement QuotesIf you are interested in a quote on a plan other than a Medicare Supplement Plan F, please click HERE. We recommend looking into a Medicare Supplement Plan G. If you have additional questions, please feel free to call us at 1-877-759-5760. We can also be reached by email at email@example.com.