How Much Will Medicare Cost in 2018: Wealthy to Pay Even MORE for Coverage
How much will Medicare cost in 2018? If you have wealth, your Medicare costs could rise rapidly. Paying for your health is going to be more expensive by 2018. Congress has decided that the wealthiest 5% of Medicare recipients should pay more for their health coverage.
What Are the Current Medicare Costs?
The annual baseline premium for Medicare is $1,462.
However, the wealthy already pay higher Medicare costs. If you are single and are earning more than $85,000 or, if you are married and earning more than $170,000 then you are currently paying more for Medicare than people below those income thresholds.
The exact amount depends on your earnings. However, according to Investopedia, the combined surcharges on your Part B and D premiums range from $737 to $4,090 per person each year.
Exactly How Much Will Medicare Cost in 2018?
While baseline costs are predicted to rise modestly, the surcharge for high earners will skyrocket.
According to a study from the Kaiser Family Foundation, some higher income earners will pay 30% more in 2018. For example, a single person earning between $133,500 and $160,000 will see premiums rise nearly $1,000.
And, the Wall Street Journal cites the Kaiser report saying that the number of people who must pay the surcharges will rise because income thresholds are not indexed for inflation. “Last year, 5.7% of Part B recipients owed the surcharges… The number is expected to grow to 8.3% by 2019.”
Who Authorized These Surcharges?
According to Kaiser, the surcharges were a provision in the Medicare Access and CHIP Reauthorization Act of 2015, a law passed to change how Medicare pays physicians.
What Can You Do?
Minimize Income: The surcharges are based on your modified adjusted gross income. If you can lower your income below some of the levels, you can save hundreds if not a thousand or more on the surcharges.
You might want to talk to a financial planner about ways to shelter your income through charitable giving, how you take IRA and 401k distributions, managing capital gains and losses, etc…
Check in on Your Overall Retirement Plan: Make sure that you plan for and have documented your overall out of pocket medical costs accurately in your retirement plan.
The NewRetirement retirement calculator lets you set your own costs and many other details. The system makes it easy to create, improve and maintain a thorough retirement plan.