First of all, thanks to videopoker@twcny.rr.com mariettatom for bringing
this to our attention.
Almost everything that was posted was accurate. I decided to check the
amount of the increase & found that's the only part of the post that is in
limbo since the increases have not been decided yet & won't be for a month or
two. This is a summary of what I found out:
MAGI = Modified Adjusted Gross Income
MAGI Single MAGI Married 2015 Part B Premium
Projected 2016 Part B Premium
Under $85,000 Under $170,000 $104.90
$159.30
{several income levels}
over $214,0000 Over $428,000 $335.70
$509.80
As you can see, at the HIGHEST income level the increase is $174.10/month
or $2089.20/uear. These are the estimates from a Baird report:
http://content.rwbaird.com/RWB/Content/PDF/Insights/Whitepapers/The-Medicare
-Hold-Harmless-Provision.pdf
Even if it's more, the damage doesn't look too bad. The report mentions
some special cases that can avoid the premium increase & I'm in one of those
cases but I'm not going to do anything about it because I like to use KISS
on my financial planning.
If you aren't in Medicare or don't know what I'm talking about then skip to
the next post because the only advice that applies is to read up on it &
be sure not to miss the sign-up window for Medicare BEFORE you turn 65
otherwise CUMULATIVE MONTHLY penalties will be incurred when you do sign up.
In a message dated 10/21/2015 2:53:28 A.M. Pacific Daylight Time,
harrahscasinos@yahoogroups.com writes:
1. Medicare shocker coming 2016
Posted by: videopoker@twcny.rr.com mariettatom
Date: Tue Oct 20, 2015 6:22 am ((PDT))
"hold harmless provision" of Medicare says that if cola payments do not
go up for social security (like 2016), the Medicare rates cannot be
increased for most medicare people. How are they going to pay for this. The
provision says that the cost to cover all the base line medicare people will be
paid for by the people on medicare that fall into the higher income
categories.
How much are we talking? How about over $1,000 per month for the over
$214,000 income category. Some would say if you had over $214,000 in income you
should be able to pony up $12,000 a year to help those who can not afford
it. Well, we leave the political discussion out of this now.
What is particularly onerous is that because medicare uses line 37 on the
1040, this means they include gambling winnings prior to the offset from
schedule A which gets subtracted after line 37. If you have $50,000 in
income from SS and a pension, w-2g's for $200,000, you have a line 37 income of
$250,000. This is your medicare income basis. If on schedule A you have
$200,000 in loses, your net income you pay taxes on is $50,000.
If I am right, someone with a $50,000 income will be paying over $12,000
for medicare, which will come directly out of their SS check.
This will be a shock and a disaster for many.
[Non-text portions of this message have been removed]
Posted by: TedChee@aol.com
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