Medicare Part B Premium Standardized for 2012
by Dr. Douglas V. Hathaway
Various health plan deductibles reset on Jan. 1. For in-service Department of Education and Day Care members, the SIDS dental deductible of $25 and the Medco prescription drug deductible of $50 per person/$150 per family reset. The 2012 deductibles begin with the first dental visit or prescriptions purchased at a pharmacy in 2012.
For Medicare-eligible retirees, the Medicare Part B deductible decreases to $140 from $162 in 2011. The GHI Medicare Part B deductible remains $50.
Social Security recipients receive a cost-of-living increase in 2012; the standard deduction for Medicare Part B for all participants will be $99.90. Therefore, if you paid $96.40 last year, you will see an increase of only $3.50 per month. If you paid $115.40 in 2011, you will save over $15 per month this year.
For those whose Medicare Adjusted Gross Incomes (MAGI) is above $85,000 (for an individual) or $170,000 (for a couple), the table below shows the various premiums by income and filing status. The total amount is paid by each individual; a married couple, with a joint income of between $170,001 and $214,000, each pay an additional amount of $40.
Medicare Part B premiums, including the IRMAA amount (Income-Related Medicare Adjustment Amount) , will continue to be reimbursed by the city consistent with the negotiations
between the Municipal Labor Committee and the city.
Changes to Part D The Medicare Part D surcharge continues in 2012 and out-of-pocket costs go up.
In 2012, the out-of-pocket limit increases to $4,700 (from $4,550 in both 2010 and 2011) before catastrophic coverage kicks in. The pension deduction for this plan will increase to $126.75 per person.
The point-of-sale discount on brand-name drugs once a participant reaches the coverage gap (or “doughnut hole”) continues in 2012. As part of the 2010 Health Care Reform law, manufacturers of brand-name drugs will discount the price by 50 percent once a participant is in the coverage gap. (The beginning of the coverage gap used in the calculation is the “standard” amount of $2,930 not the GHI amount of $2,250). This will halve the cost of many prescriptions when you’re in the gap.
For example, if a prescription cost $100 in 2010, your cost was 60 percent, or $60. In 2012, the cost of the medication will be $50, and your cost will be $30.
But wait! It gets better. You also get out-of-pocket credit for money you didn’t spend. Even though you only paid $30, you’ll get out-of-pocket credit for $60 the full 60 percent of the original drug cost.
In 2012, those who are subject to an IRMAA assessment on Medicare Part B will continue to be assessed a surcharge on Medicare Part D, according to the table listed here. The total amount is paid by each individual. For example, a couple earning between $320,001 and $428,000 each pay an additional amount of $50.10. The city does not reimburse Part D surcharges.
