Medicare Part B Quotes

Well, this was predictable. House Republicans last week acceded to an extension of the Export-Import Bank for at least the next nine months. The Export-Import Bank is far from the worst example of government-business cronyism. I just completed a history of American political corruption and actually had to leave Ex-Im on the cutting room floor. Its cronies are pikers compared with the corporate moguls that take advantage of tax preferences like the G.E. and Apple loopholes. They also cannot hold a candle to the American Medical Association, which is basically free to write the reimbursement rates for Medicare Part B. And nothing compares to Fannie Mae and Freddie Mac from 1991-2008. The two mortgage giants kept the entire D.C. political class bent over a barrel for almost 20 years as its top executives reaped enormous bonuses while putting the broader economy at risk.

Conversely, there are other services in which Medicare is required to pay whatever it is charged. For instance, Medicare Part B pays oncologists for intravenous cancer chemotherapy drugs administered in the office. The

If husband took his retirement benefit after FRA and widow takes the survivor’s benefit at or after her own FRA, she will, indeed, receive his actual retirement benefit—his full retirement benefit inclusive of his Delayed Retirement Credits. As it happens, this may be even more than the check he was receiving each month. Why? Because his monthly Medicare Part B premium may have been withheld from his monthly Social Security check and of course those premiums no longer need to be paid.

If you are a wealthier taxpayer, you get a double Medicare hit. You pay more in Medicare payroll taxes because you earn more (recall that, unlike Social Security, there is no wage ceiling on Medicare taxes). But you also pay more in Medicare Part B and Part D premiums, and this enforced tithing will get worse, beginning in 2018.

Part B charges a monthly premium that in 2016 is $104.90 for most beneficiaries. However, about 5 percent of Part B subscribers earned enough money to push them into higher premium brackets. This set of surcharges is known as the income-related monthly adjustment amount, or IRMAA.16 Social Security makes this call and bases premiums on federal tax returns two years prior to the program year in question. So, the agency used 2014 returns to determine any 2016 Part B premium surcharges. For the detail-minded, the agency uses a measure of taxable income called “modified adjusted gross income.”17 Chapter 9 includes details of Part B premiums and surcharges.

In Original Medicare, according to an example provided by Kaiser, a $100 doctor’s bill involving a participating provider would cost you a 20 percent copayment, or $20, after Medicare’s 80 percent payment under Part B insurance rules. If you were, instead, seeing a nonparticipating provider, Medicare would first reduce its allowable fee for the service by 5 percent, from $100 to $95. If your doctor agreed to assignment here, Medicare would cover $76 of the $95 bill (its 80 percent payment) and you would pay the remaining $19. But if the doctor did not accept assignment, he or she would be able to charge you up to 115 percent of the reduced charge. In our example, this would total up to $109.25 (115 percent of $95). Medicare would still pay $76. But now you would pay not $19 but as much as $33.25. In the real world, of course, especially if the doctor involved was performing surgery, you would be multiplying this $100 many, many times over. And balance billing could definitely unbalance your budget.

Medicare supplement plans, just like Medicare Parts A & B, are good anywhere in the 50 US states and possessions. The plans I recommend also have a $50,000 lifetime benefit for emergency treatment in foreign countries.

Table 5.2 Retiring before 70 Means Much Lower Benefits “Net” Replacement Rate for Medium Worker by Retirement Age, 1980–2030 Note: Year is date retiree reaches age 65. Replacement rate is net of Part B and D premiums, as well as taxation of benefits. Part B SMI deduction for 2030 assumes SMI continues to cover 26 percent of plan costs and uses Trustees’ Report enrollment and cost growth assumptions. The assumptions are that the beneficiary has enough other income to have benefits taxed (about $10,000 in 2030) and that the tax rate is 12.5 percent. Sources: Authors’ calculations based on Centers for Medicare and Medicaid Services (2013); and Social Security Administration (2013b).