Identification Number:
HI 01101 TN 15
Intended Audience:See Transmittal Sheet
Originating Office:ORDP OISP
Title:Medicare Income-Related Monthly Adjustment Amount
Type:POMS Transmittals
Program:Medicare,Medicaid
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part HI – Health Insurance
Chapter 011 – Medicare Income-Related Monthly Adjustment Amount
Subchapter 01 – Medicare Income-Related Monthly Adjustment Amount
Transmittal No. 15, 04/16/2020

Audience

PSC: BA, CA, CS, DS, ICDS, IES, ILPDS, IPDS, ISRA, PETE, RECONR, SCPS, TSA, TST;
OCO-OEIO: BET, BIES, CCRE, CR, CST, CTE, EIE, ERE, FCR, PETL, RECONE, RECONR;
OCO-ODO: BET, BTE, CR, CST, CTE, CTE TE, DEC, PAS, PETE, PETL;
FO/TSC: CS, CS TII, CSR, DRT, FR, OA, OS, RR, TSC-CSR;

Originating Component

OISP

Effective Date

Upon Receipt

Background

IRMAA premiums change yearly, and are impacted by an individuals MAGI. Updates are required once the new thresholds and rates are announced. This is a Quick Action Transmittal and these changes does not introduce new policy or procedure. We are providing the 2020 MAGI threshold amounts. In addition, it provides an update for the following: Adjusted Gross Income (AGI) is now found on the IRS form 1040 line 8b. Form 1040 was changed again in 2020.

 

Summary of Changes

HI 01101.010 Modified Adjusted Gross Income (MAGI)

Summary table located at conclusion of POMS requires updating based on 2020 IRMAA Threshold Changes (as mandated and approved). In addition, Section A.1., first bullet, was changed to reference the revised IRS form 1040: Adjust Gross Income (AGI) is now found on line 8b of the form. Section A.1. first bullet changed from line 7, to note AGI is now found on line 8b of the 1040 form.

 

 

HI 01101.010 Modified Adjusted Gross Income (MAGI)

CITATIONS:

Section 1839(i) of the Social Security Act;

A. Policy for MAGI

  1. 1. 

    Modified Adjusted Gross Income (MAGI) is the sum of:

    • the beneficiary’s adjusted gross income (AGI) (found on line 8b of the Internal Revenue Service (IRS) tax filing form 1040), plus

    • tax-exempt interest income (line 2a of IRS Form 1040).

  2. 2. 

    The MAGI used to determine if the income-related monthly adjustment amount (IRMAA) applies is the most recent tax information that IRS is able to provide. Generally, the information is from two years prior to the year for which the premium is being determined, but not more than three years prior. For example, 2011 premiums are generally based on 2009 tax return information. See HI 01101.020 for more detail about how MAGI is used.

  3. 3. 

    Beneficiaries with Medicare Part B, prescription drug coverage, or both, with MAGI above the applicable threshold pay more toward their coverage premiums because of IRMAA. See the policy for MAGI thresholds in HI 01101.010B.

  4. 4. 

    Beneficiaries with MAGI above the threshold are subject to a sliding scale increase in their premiums. See HI 01101.020, IRMAA Sliding Scale Tables.

B. Policy for MAGI thresholds

The MAGI thresholds used for IRMAA calculations are:

IRS Filing Status

2007

2008

2009

2010

2011-2019

2020

Married, filing jointly

$160,000

$164,000

$170,000

$170,000

 

$170,000
$174,000

All other filing statuses

$80,000

$82,000

$85,000

$85,000

 

$85,000

$87,000


HI 01101 TN 15 - Medicare Income-Related Monthly Adjustment Amount - 4/16/2020