Oct 11, 2010

Medicare Premiums for 2011

Our CBO-Alumni den mother Kathy R sent the attached table around as a first look at what to expect for Medicare premiums in 2011. She took it from a report published September 23 by the National Health Policy Forum. I'm reproducing the table from that report here.

If you're in the "holdharmless" group, it's because you're not new to Medicare in 2011, and your income (modified AGI in 2009) is no more than $85,000. Otherwise, you're in another column. Note the income break points in the table. It makes sense to micro-manage your income if your AGI falls close to a breakpoint.
For example, make $85,001 (if you made only $85,000 in the previous year) and that extra dollar will net you about $58 per month, or about $700 per year, in extra Medicare Part B premium compared with the hold-harmless premium. That's a marginal tax rate of 78,000% on the last dollar (at least I think it is...it's hard for me to calculate high percentages.)

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