Medicare health insurance premiums can be very expensive, especially if you are married and you and your wife pay. In this column, I will list the premium amounts for 2018 and 2019 and explain when you can possibly claim tax deductions. Here you are.
Medicare Part A Premiums
Medicare Part A coverage is commonly referred to as Medicare hospitalization insurance. It covers hospital hospital care, specialized nursing care and some home health care services. You do not have to pay a premium for Part A coverage if you have paid health insurance taxes for at least 40 quarters during your working years. In this case, you are deemed to have paid your Part A premiums via Medicare taxes on wages and / or self-employment earnings. However, some people did not pay Medicare taxes for enough months while they worked and have to pay for Part A coverage.
* If you paid Medicare taxes for 30 to 39 quarters during your working years, the 2018 Part A premium amounted to $ 237 per month ($ 2,844 for the full year). For 2019, the monthly premium is $ 240 ($ 2,880 for the full year).
* If you paid taxes to Medicare for less than 30 quarters, the 2018 Part A premium amounted to $ 422 per month ($ 5,064 for the full year). For 2019, the monthly premium is $ 437 ($ 5,244 for the year).
* The same premiums apply to your spouse if he paid health insurance taxes for less than 40 quarters while working.
Medicare Part B Rewards
Medicare Part B coverage is commonly referred to as Medicare health insurance or original health insurance. Part B covers mainly medical and ambulatory services, and people eligible for Medicare must pay monthly premiums to benefit from this benefit.
The monthly premium for the current year depends on your modified adjusted gross income (MAGI), as it is stated on your Form 1040 two years earlier. Strange but true. For example, your 2019 premiums depend on your 2017 MAGI. MAGI is the adjusted gross income (AGI) amount shown on page 1 of your Form 1040, plus any tax-deferred interest income.
For 2018, most people paid Part B basic premium of $ 134 per month ($ 1,608 if premiums were paid for the entire year).
For 2019, the base premium is $ 135.60 per month ($ 1,627 for the full year).
High-income individuals must pay a supplement for Part B coverage in addition to the basic premium. See the section below.
Medicare Part D Premiums
Medicare Part D coverage is for private coverage of prescription drugs. Premiums vary depending on the plan. High-income individuals must pay a supplement in addition to the basic premium. See the section at the bottom of this article.
Additional Medigap coverage premiums
Medicare Parts A and B do not cover all health care costs. Coverage differences include co-payments, co-insurance and deductibles. Therefore, you may want to take out a "Medigap policy", a private supplementary insurance designed to cover all or part of the shortcomings. In most states, insurance companies can only sell standardized Medigap policies that offer the same basic benefits. Some Medigap fonts offer additional benefits for an additional fee. Premiums vary according to the plan you select.
Medicare Advantage (Medicare Part C) Premiums
You can get your Medicare benefits from the government through the covers of parts A and B or through a so-called Medicare Advantage plan offered by a private insurance company. Medicare Advantage plans are sometimes called Medicare Part C.
The government pays the Medicare Advantage insurance company to cover your Medicare Part A and Part B benefits. Medicare Advantage plans may also include Medicare Part D and may also provide dental and vision benefits that are not covered by the Medicare Advantage. are not covered by Medicare Part B.
When you sign up for a Medicare Advantage plan, you continue to pay Medicare Part B premiums. You will typically pay a separate additional premium for the Medicare Advantage Plan, but some plans do not charge any additional premiums. The additional premium, if any, depends on the plan you have selected.
Key point: Medigap policies do not work with Medicare Advantage plans. So, if you adhere to a Medicare Advantage plan, you should give up your Medigap coverage.
Tax Deductions on Medicare Health Insurance Premiums
The premiums for all of the above Medicare health insurance coverage can be combined with your other eligible health care expenses for the purpose of claiming a detailed medical expense deduction on your Form 1040. However, for 2018, you can not claim a deduction for medical expenses detailed to what extent your total eligible expenses exceed 7.5% of the AGI. For 2019, the deduction threshold for medical expenses should rise to 10% of the AGI, unless Congress extends the AGI's 7.5% agreement.
Another factor: since the law on tax cuts and jobs has significantly increased the amounts of lump sum deductions for 2018-2025, fewer people will detail. However, significant medical expenses (including those related to Medicare health insurance premiums) can allow you to detail and collect tax savings.
For 2018, the usual deductions are $ 12,000 for single filers, $ 24,000 for married married couples and $ 18,000 for heads of households. For 2019, the standard deductions are $ 12,200, $ 24,400 and $ 18,350, respectively.
Key Point: If you are a self-employed or shareholder of S, you can claim a deduction in excess of the limit of your health insurance premiums, including Medicare premiums. And you do not need to detail to get the tax savings.
Premium Surplus Medicare for High Income People 2018 Part B B Supplements
High-income individuals must pay a supplement in addition to the basic premium for Part B coverage. For 2018, surcharges apply to singles whose MAGI 2016 exceeds $ 85,000 and to married couples married to more than 170,000 USD with a MAGI 2016. With the surtax (which increases with the rise of MAGI 2016), the 2018 Part B monthly premium for each insured person can rise to $ 187.50 (2 $ 250 for the full year), $ 267.90 ($ 3,215 for the full year), $ 348.30 ($ 4,180 for the whole $ 428.60 ($ 5,143) for the year.) The maximum bonus of $ 428.60 applies to singles whose MAGI 2016 exceeds $ 160,000 and to married persons who have filed joint 2016 returns greater than MAGI greater than $ 320,000.
2019 Part B Surcharges
For 2019, the supplement to Part B depends on the MAGI amount from Form 1040 in 2017. Another category of MAGI has also been added to the supplement structure of 2019. Supplements apply to single persons with a MAGI of more than $ 85,000 2017 and married people Yields in 2017 are over $ 170,000 for MAGI. Taking into account the supplements (which increase as the 2017 MAGI increases), the 2019 Part B monthly premiums for an insured can rise to $ 189.60 ($ 2,275 for the year complete), $ 270.90 ($ 3,251 for the full year), $ 352.20 ($ 4,226 for the full $ 433.40 ($ 5,201 for the full year) or 460 , $ 50 ($ 5,526 for the full year) The maximum bonus of $ 460.50 applies to singles with MAGI 2017 greater than $ 500,000 and married persons who have filed 2017 joint statements with MAGI greater than 750 $ 000.
2018 Part D Surcharges
For 2018, the supplement in Part D depends on your MAGI 2016. The supplement increases using the same MAGI scale as the premium supplement in Part B above. The amount of the monthly surtax for each insured person can be $ 13.00, $ 33.60, $ 54.20 or $ 74.80. The maximum supplement of $ 74.80 applies to singles whose MAGI 2016 exceeds $ 160,000 and to married persons who have filed joint 2016 returns of more than $ 320,000 with MAGI.
2019 Part D Surcharges
For 2019, the additional costs of Part D depend on your MAGI 2017. They increase using the same MAGI scale as the surcharges of Part B. The good news is that the 2019 supplements are slightly lower than those of 2018, at the same time. Exception of people in the highest MAGI category. The monthly surtax amount for 2019 for each insured person can be $ 12.40, $ 31.90, $ 51.40, $ 70.90 or $ 77.40. The maximum surtax of $ 77.40 applies to singles whose MAGI 2017 exceeds $ 500,000 and to married persons who have filed 2017 joint statements with MAGI greater than $ 750,000.