Many people planning retirement overlook the significant cost for Medicare premiums – let alone for supplemental coverage.
Some modestly higher income seniors pay quite a bit more for Parts B and D based on their modified adjusted income – MAGI.
MAGI is calculated as Adjusted Gross Income (line 11 of IRS Form 1040) plus tax-exempt interest income (line 2a of IRS Form 1040)
None of this is news to many people. HOWEVER, what may be overlooked is the disproportionate impact on a surviving spouse. For example, a couple with a MAGI just above $180,000 each pay $238.10 for Part B, but a surviving spouse with income of half that will still pay $238.10. It gets worse at higher income levels. Single individuals are at a disadvantage.