Your Medicare Part B cost is based on your combined Adjusted Gross Income (AGI) and tax-exempt interest.
The higher this income, the more you pay. This increase is meaningful.
Additionally, Medicare looks back two years at a taxpayers’ income to determine the current years’ premium.
For example, a couple who in 2018 had $174,000 in qualified income will pay $3,470.40 in 2020 for Medicare. This premium does not include the cost of supplements. If this couple instead earned $175,000, the Medicare costs increase to $4,857.60. This is a 40% increase for the same benefits. If their income in 2018 was instead $219,000, this cost doubles.
The 2020 Medicare Plan B cost breakdown is below.
What does this mean to you?
Managing how retirement income is generated can help you manage Medicare premiums. The savings over time is meaningful.
Understanding and managing the relationship between retirement income and Medicare’s cost is another way Cornerstone adds value to our client’s financial lives.
Looking for Financial Confidence in Retirement?
Good Things Come to Those Who Click!
In Search of Financial Guidance for Life Transitions?
Contact us for your complimentary consultation today, and take control of your financial future in retirement.