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Personal Finance Tip: 2019 Medicare Insurance Premium Reminder

 

For most Americans, the government pays about 75 percent of the Medicare Part B premium, and the beneficiary pays the remaining 25 percent.

If you’re a higher-income beneficiary, you’ll pay a larger percentage of the total cost of Part B). In 2018 you pay monthly Part B premiums equal to 35, 50, 65, or 80% of the total Medicare cost, depending on your income. In 2019, a 85% surcharge bracket was added.

Medicare estimates their monthly cost in 2019 will be $541.75.

The minimum 2019 Medicare monthly premium is $135.50 (25% * $541.75)

With the new 85% surcharge bracket, you will pay a maximum of $460.50 per month (85% * $541.75) if you make $500,000 or more ($750,000 for married).

Tip: Your 2019 Medicare premiums are based on your 2017 tax return filed in 2018. The more income you have, the more Medicare premiums you pay. For those who are over age 70.5, for required minimum distributions from your IRA you can transfer these directly to charity without reporting this as income and thereby having no impact on your Medicare premiums.

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Richard Pon CPA, CFP