RETIRED PUBLIC EMPLOYEES ASSOCIATION (RPEA)
2019 Medicare Part B Premium Announced
Good News for Retirees

The Centers for Medicare and Medicaid Services announced that the “standard” Medicare Part B monthly premium will be $135.50, a very modest increase of just $1.50 per month over the 2018 premium.

In October, the Social Security Administration announced that the 2019 cost of living adjustment (COLA) will be 2.8%, the largest in seven years. The size of the COLA, compared to the modest Part B increase, means that nearly all retirees will see a net increase in their Social Security check. This is contrary to last year, when the Part B increase wiped out nearly all of the COLA increase. A very small percent of beneficiaries (3.5%) pay less than the “standard” premium due to the “hold harmless” provision in the Medicare law which prevents a premium increase which exceeds the amount of a COLA.

As is always the case, those retirees with income above $85,000 (single) or $170,000 (joint) will pay an Income Related Monthly Adjustment Amount (IRMAA) surcharge. The surcharge for the various income brackets will increase slightly in 2019. Medicare uses your tax return from two years ago to determine your modified adjusted gross income. Accordingly, here is the IRMAA table for 2019, as compared to 2018 (note that a new tier for income above $500,000 (single) and $750,000 (joint) was added for 2019).

On the plus side, the IRMAA surcharge on Part D (Prescription) coverage will actually decrease by 5% in 2019 for everyone except those in the $500,000 bracket. Because the Part D surcharge is a much smaller amount than for Part B, the “average” decrease equals about $2.00 per month.



image.png On the plus side, the IRMAA surcharge on Part D (Prescription) coverage will actually decrease by 5% in 2019 for everyone except those in the $500,000 bracket. Because the Part D surcharge is a much smaller amount than for Part B, the “average” decrease equals about $2.00 per month.