Our clients are calling to find out why they are receiving two bills for their Medicare prescription plans. “What is IRMAA? Why is Medicare billing me for the prescription plan that I am purchasing from Blue Shield? Which bill should I pay?”
Last year’s health reform, the Affordable Care Act, made a significant change to the premium you pay for Medicare’s Part D prescription drug plan. Beginning January 1st, your premiums for both Medicare Parts B and D will be based on your income. The additional amount due for your prescription drug plan is called the income-related monthly adjustment amount or IRMAA. The IRMAA is based entirely on your income, not on the cost of the prescription drug plan you have selected. This IRMAA amount is paid directly to Medicare, not to your insurance company.
You will now receive two bills for your prescription coverage. You need to pay both bills.
If you are receiving Social Security benefits, the additional cost for your Part D plan will be deducted from your monthly benefit.
This chart shows income related premiums for 2011. (Click on the chart to make it bigger).
The monthly premium rates paid by beneficiaries who are married, but file a separate return from their spouses and who lived with their spouses at some time during the taxable year, are different. Those rates are as follows:
What’s improving in 2011for the prescription drug plan? You’ll receive a 50% discount for covered brand name prescriptions when you’re in the “donut hole” and paying the full cost of your medications.
Here’s to a healthy 2011!
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