Both President Barack Obama’s FY2014 budget proposal and the budget proposal put forward by the Republican chairman of the House Budget Committee would continue the freeze on income thresholds until 25 percent of Medicare beneficiaries pay income-related premiums. Both proposals also increase the amounts of the premium surcharges so that they cover a higher percentage of projected program costs.3
For clients already relying on Medicare or becoming eligible soon, it’s important to educate them about IRMAA. Help them look at strategies to minimize their exposure and identify other ways to make Medicare plan selection choices so they have healthcare coverage that best meets their needs and financial resources.
For your younger clients, an awareness of the role that income may play in setting their future Medicare premiums may help them form a more realistic assessment of their healthcare costs in retirement.
Paula Muschler is manager of the Allsup Medicare Advisor®, a nationwide Medicare plan selection service that helps financial advisors ensure their clients choose the Medicare coverage that matches their needs and preferences. Allsup Medicare Advisor® is an unbiased Medicare plan selection service that serves as a trusted resource for financial advisors and seniors. Allsup Medicare specialists can work with your clients one-on-one to assess their needs, research their Medicare options and help them choose cost-effective coverage that protects their health and retirement savings. Financial advisors may contact (888) 220-9678 or go to FinancialAdvisor.Allsup.com for more information.
1Social Security Administration, “Medicare Premiums: Rules For Higher-Income Beneficiaries,” 2013.
2Kaiser Family Foundation, “Income-Relating Medicare Part B and Part D Premiums Under Current Law and Recent Proposals: What are the Implications for Beneficiaries?” Medicare Policy Issue Brief, February 2012.
3 Kaiser Family Foundation, “Medicare and the Federal Budget: Comparison of Medicare Provisions in Recent Federal Debt and Deficit Reduction Proposal,” Medicare Policy Issue Brief, April 2013.