No problem. First you should know that the law requires an adjustment to your monthly Medicare Part B medical insurance and Medicare prescription drug coverage premiums. This affects less than five percent of people with Medicare. Most people don t pay higher premiums.
Can you tell me how you determine my 2020 income-related monthly adjustment amounts when it comes to tax return?
Of course. We use your most recent federal tax return the IRS provides to us. Generally, this information is from a tax return filed in 2019 for tax year 2018. Sometimes, the IRS only provides information from a return filed in 2018 for tax year 2017.
I see. What if my income has increased?
Do you have a higher income?
No? No, just forget it. I didn't mention anything like that.
Well, if I WAS a higher income beneficiary with Medicare prescription drug coverage, what would that entail?
You'd pay monthly premiums plus an additional amount, which is based on what you report to the IRS. Because individual plan premiums vary, the law specifies that the amount is determined using a base premium.
And regarding the premiums, what if you determine I was a higher-income beneficiary?