Over the last two-and-a-half years, Social Security and Medicare have implemented a number of changes that will reduce benefits, increase future health care costs, and significantly impact current and future retirees.
Modifications to Medicare income thresholds will, at first, only apply to affluent Americans; however, since the brackets have not been indexed to inflation, over time, more retirees will be subject to surcharges.
FEBRUARY 9, 2018: BIPARTISAN BUDGET ACT OF 2018: INDEXING DELAYED; SIXTH MEANS TESTING BRACKET ADDED
The “Medicare Modernization Act of 2003” brought substantial changes (including the introduction of Part D, which established prescription drug coverage). Another important, but sometimes overlooked, provision was Medicare Means Testing, which requires those with a high Modified Adjusted Gross Income
(MAGI) in retirement to pay more for Medicare.
Implemented on January 1, 2007, the original proposal divided MAGI into five brackets. (The top four were surcharged. Part D surcharges were added four years later.) This marked the first time Medicare recipients had to pay extra for Part B and Part D because of their income.
In the 15 years since the law was established, Medicare has not adjusted the brackets for inflation…