Ask Larry

My question yesterday was poorly worded, and it was only from your excellent response, I realized what it should have been. The potential problem with Medicare and spousal benefits or regular benefits in 2016, appears to potentially be if my wife predeceases me, then my income plus (85%) of my social security would be greater than $85k. Would there be a save harmless clause to protect me from increased Medicare costs. Because of my former profession, I receive my medicare costs from the state. If my medicare costs did increase, would I have to notify the state, or would they automatically cover the increase?
Thank you for your help.

Hi,

No, the 'hold harmless' provision does not apply to the increased premium rates paid by Medicare recipients with higher incomes. If your annual income is higher than $85,000 for an individual, or $170,000 for a couple, premium rates for Parts B & D of Medicare are determined by a sliding scale. For more information, see the following pamphlet: https://www.ssa.gov/pubs/EN-05-10536.pdf.

As far as whether your state would pay the higher Medicare premiums in your case, if applicable, I guess that depends on the specific arrangement. You would need to check with the agency that administers the payments under that plan.

Best, Jerry