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Financial advisors, will Medicare changes affect your high-income clients?

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What advisors need to know

Changes to Medicare thresholds for higher Part B and Part D premiums will affect higher income recipients this year.

Medicare beneficiaries with higher incomes pay higher premiums for Parts B and D, called income-related monthly adjustment amounts, or IRMAA. Beginning this year and applying to tax year 2016, the thresholds for the surcharges have changed.

The surcharges apply to individuals with modified adjusted gross incomes above $85,000 and couples above $170,000.

The five Medicare premium tiers

Tier One: No surcharges
Individuals: Below $85,000
Couples: Below $170,000

Tier Two: Additional $53.50 for Part B, additional $13 for Part D
Individuals: $85,000 to $107,000
Couples income: $170,000 to $214,000

Tier Three: Additional $133.90 for Part B, additional $33.60 for Part D
Individuals: $107,000 to $133,500
Couples: $214,000 to $267,000

Tier Four: Additional $214.30 for Part B, additional $54.20 for Part D
Individuals: $133,500 to $160,000
Couples: $267,000 to $320,000

Tier Five: Additional $294.60 for Part B, additional $74.80 for Part D
Individuals: Above $160,000
Couples: Above $320,000

Do your clients have the right Medicare strategy? With 18 possible Medicare strategies, most retired consumers have more options than they realize for cost-effective care.

Most financial advisors recognize that healthcare planning is becoming material to clients’ financial interests and retirement plans, but aren’t sure how to address these needs in-house.

By partnering with noncommissioned healthcare advisors such as Bernard Health, financial advisors can extend their value propositions and provided much-needed advice in this complicated area.

Learn more about offering a Healthcare Extension through Bernard Health by clicking below.

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