Income-Related Monthly Adjustment Amounts for Medicare Part B and Prescription Drug Coverage Premiums, 55626-55632 [2018-24336]
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Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations
BILLING CODE 4910–13–C
(h) Alternative Methods of Compliance
(AMOCs)
(1) The Manager, ECO Branch, FAA, has
the authority to approve AMOCs for this AD,
if requested using the procedures found in 14
CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector
or local Flight Standards District Office, as
appropriate. If sending information directly
to the manager of the certification office,
send it to the attention of the person
identified in paragraph (i) of this AD. You
may email your request to: ANE-AD-AMOC@
faa.gov.
(2) Before using any approved AMOC,
notify your appropriate principal inspector,
or lacking a principal inspector, the manager
of the local flight standards district office/
certificate holding district office.
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For more information about this AD,
contact Kevin M. Clark, Aerospace Engineer,
ECO Branch, FAA, 1200 District Avenue,
Burlington, MA, 01803; phone: 781–238–
7088; fax: 781–238–7199; email:
kevin.m.clark@faa.gov.
(j) Material Incorporated by Reference
None.
16:15 Nov 06, 2018
[Docket No. SSA–2018–0041]
The Bipartisan Budget Act of 2018 (BBA
2018) revised the MAGI ranges again for
years beginning with 2019. We consider
a beneficiary’s MAGI and tax filing
status to determine: The percentage of
the unsubsidized Medicare Part B
premium that the beneficiary must pay;
and the percentage of the cost of basic
Medicare prescription drug coverage the
beneficiary must pay. This final rule
makes our regulations consistent with
the MAGI ranges specified by MACRA
and BBA 2018.
RIN 0960–AI37
DATES:
Income-Related Monthly Adjustment
Amounts for Medicare Part B and
Prescription Drug Coverage Premiums
FOR FURTHER INFORMATION CONTACT:
[FR Doc. 2018–24250 Filed 11–6–18; 8:45 am]
BILLING CODE 4910–13–P
SOCIAL SECURITY ADMINISTRATION
20 CFR Part 418
Social Security Administration.
Final rule.
AGENCY:
(i) Related Information
VerDate Sep<11>2014
Issued in Burlington, MA, on November
01, 2018.
Robert J. Ganley,
Manager, Engine and Propeller Standards
Branch, Aircraft Certification Service.
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ACTION:
The Medicare Access and
CHIP Reauthorization Act of 2015
(MACRA) changed the modified
adjusted gross income (MAGI) ranges
associated with Medicare Part B and
Medicare prescription drug coverage
premiums for years beginning in 2018.
SUMMARY:
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This rule is effective November
7, 2018.
Donald Murphy, Office of Income
Security Programs, Social Security
Administration, 6401 Security
Boulevard, Baltimore, MD 21235–6401,
(410) 965–9090. For information on
eligibility or filing for benefits, call our
national toll-free number, 1–800–772–
1213, or TTY 1–800–325–0778, or visit
our internet site, Social Security Online,
at https://www.socialsecurity.gov.
SUPPLEMENTARY INFORMATION:
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Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations
Background
Explanation of Changes
For Medicare Part B, the incomerelated monthly adjustment amount
(IRMAA) is the amount that a
beneficiary must pay in addition to the
Medicare Part B standard monthly
premium when the beneficiary’s MAGI
is above a specified threshold.1 For
Medicare prescription drug coverage,
IRMAA is an amount that a beneficiary
will pay in addition to the Medicare
prescription drug coverage plan
monthly premium when the
beneficiary’s MAGI is above the
specified threshold.2
To determine a beneficiary’s IRMAA,
we consider the beneficiary’s MAGI,
together with tax filing status, to
determine: (1) The percentage of the
unsubsidized Medicare Part B premium
the beneficiary must pay; and (2) the
percentage of the cost of basic Medicare
prescription drug coverage that the
beneficiary must pay.
In our regulations, we use lists and
tables to show the MAGI ranges we use
to determine IRMAA for specific years.
The lists associated with both Medicare
Part B and Medicare prescription drug
coverage specify the MAGI ranges. The
tables associated with Medicare Part B
show, within each MAGI range, the
percentage of the unsubsidized
Medicare Part B premium that
beneficiaries must pay and the
percentage that will be subsidized by
contributions from the Federal
Government. The tables associated with
prescription drug coverage show, within
each MAGI range, the percentage of the
cost of basic Medicare prescription drug
coverage the beneficiaries must pay.
MACRA 3 changed the MAGI ranges
associated with Medicare Part B and
prescription drug coverage premiums
for years beginning in 2018. BBA 2018 4
changed the MAGI ranges associated
with Medicare Part B and prescription
drug coverage premiums for years
beginning in 2019. Based on these
changes, we revised the lists and tables
to show the updated MAGI ranges and
associated figures for 2018 and for years
beginning in 2019. In each case, the
MAGI ranges are subject to an inflation
adjustment for calendar years beginning
in 2020, as we explain in sections
418.1105(c), 418.1115(e), 418.2105(c),
and 418.2115(e).
The changes detailed below make our
regulations consistent with the updates
specified by MACRA and BBA 2018.
In § 418.1115 and § 418.2115, we
updated the lists of MAGI ranges for
beneficiaries of all tax filing statuses for
2018 and for years beginning in 2019.
In § 418.1120 and § 418.2120, we
added tables to show the figures that are
applicable for 2018 and for years
beginning in 2019. The tables in
§ 418.1120 show the updated MAGI
ranges, and within each range, the
percentage of the unsubsidized
Medicare Part B premium that will be
paid by beneficiaries and the percentage
of the Medicare Part B premium that
will be subsidized by contributions from
the Federal Government. The tables in
§ 418.2120 show the updated MAGI
ranges, and within each range, the
percentage of the cost of basic Medicare
prescription drug coverage that
beneficiaries will pay.
We also made minor conforming
changes in these sections.
1 Medicare Part B standard monthly premiums
may also be increased for late enrollment and for
reenrollment. See 42 CFR 408.22 for an explanation.
2 Medicare prescription drug coverage premiums
may also be increased for the reasons found in 42
CFR 423.286.
3 Public Law 114–10, section 402, 129 Stat. 87,
160.
4 Public Law 115–123, section 53114.
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Regulatory Procedures
We follow the Administrative
Procedure Act (APA) rulemaking
procedures specified in 5 U.S.C. 553
when we develop regulations.
Generally, the APA requires that an
agency provide prior notice and
opportunity for public comment before
issuing a final rule. The APA provides
exceptions to its notice and public
comment procedures when an agency
finds there is good cause for dispensing
with such procedures because they are
impracticable, unnecessary, or contrary
to the public interest.
We find that there is good cause
under 5 U.S.C. 553(b)(B) to issue this
regulatory change as a final rule without
prior public comment. We find that
prior public comment is unnecessary
because this final rule merely makes our
regulations (20 CFR 418.1115, 418.1120,
418.2115, and 418.2120) consistent with
the MAGI ranges specified by MACRA
and BBA 2018. BBA 2018 indicated that
the new amounts for 2019 must be in
place by calendar year 2019.
Importantly, we have no agency
discretion for establishing these figures.
Accordingly, we find there is good
cause to issue this final rule without
prior public comment.
In addition, we find that there is good
cause for dispensing with the 30-day
delay in the effective date of a
substantive rule provided by 5 U.S.C.
553(d)(3). As we explained above, these
final rules merely make our regulations
consistent with the MAGI ranges
specified by Congress in the law. Those
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55627
MAGI ranges need to be in place by
calendar year 2019. We find that it is
unnecessary to delay the effective date
of the final rule because the rule merely
reflects the changes to the law that
Congress has already made. In addition,
we find that it is in the public interest
to make this final rule effective on the
date of publication in order to ensure
that our rules accurately reflect the
statute when the MAGI ranges for 2019
become effective.
Executive Order (E.O.) 12866, as
Supplemented by E.O. 13563
We consulted with the Office of
Management and Budget (OMB) and
determined that this final rule does not
meet the criteria for a significant
regulatory action under E.O. 12866, as
supplemented by E.O. 13563. Thus,
OMB did not review the final rule.
We also determined that this final
rule meets the plain language
requirement of E.O. 12866.
E.O. 13132 (Federalism)
We analyzed this rule in accordance
with the principles and criteria
established by Executive Order 13132,
and determined that the rule will not
have sufficient Federalism implications
to warrant the preparation of a
Federalism assessment. We also
determined that this rule will not
preempt any State law or State
regulation or affect the States’ abilities
to discharge traditional State
governmental functions.
Regulatory Flexibility Act
We certify that these rules will not
have a significant economic impact on
a substantial number of small entities
because they affect individuals only.
Therefore, a regulatory flexibility
analysis is not required under the
Regulatory Flexibility Act, as amended.
E.O. 13771
This regulation does not impose novel
costs on the public and as such is
considered an exempt regulatory action
under E.O. 13771.
Paperwork Reduction Act
This rule does not create any new or
affect any existing collections and,
therefore, does not require Office of
Management and Budget approval
under the Paperwork Reduction Act.
(Catalog of Federal Domestic Assistance
Program Nos. 96.001, Social Security—
Disability Insurance; 96.002, Social
Security—Retirement Insurance; 96.004,
Social Security—Survivors Insurance; and
96.006, Supplemental Security Income).
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Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations
List of Subjects in 20 CFR Part 418
Administrative practice and
procedure, Aged, Blind, Disability
benefits, Medicare, Reporting and
recordkeeping requirements.
Nancy A. Berryhill,
Acting Commissioner of Social Security.
For the reasons set forth in the
preamble, we amend subpart B and
subpart C of part 418 of title 20 of the
Code of Federal Regulations as set forth
below:
PART 418—MEDICARE SUBSIDIES
Subpart B—Medicare Part B IncomeRelated Monthly Adjustment Amount
1. The authority citation for subpart B
of part 418 continues to read as follows:
■
Authority: Secs. 702(a)(5) and 1839(i) of
the Social Security Act (42 U.S.C. 902(a)(5)
and 1395r(i)).
2. Amend § 418.1001 by revising the
first sentence of the introductory text to
read as follows:
■
§ 418.1001
What is this subpart about?
This subpart relates to section 1839(i)
of the Social Security Act (the Act), as
amended. * * *
*
*
*
*
*
■ 3. Amend § 418.1115 by:
■ a. Revising the first sentence of
paragraph (a); and
■ b. Revising paragraphs (b), (c), (d), and
(e).
The revisions read as follows:
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§ 418.1115 What are the modified adjusted
gross income ranges?
(a) We list the modified adjusted gross
income ranges for the calendar years
2011 through and including 2017, 2018,
and for years beginning in 2019 for each
Federal tax filing category in paragraphs
(b), (c) and (d) of this section. * * *
(b) The modified adjusted gross
income ranges for individuals with a
Federal tax filing status of single, head
of household, qualifying widow(er) with
dependent child, and married filing
separately when the individual has
lived apart from his/her spouse for the
entire tax year for the year we use to
make our income-related monthly
adjustment amount determination are as
follows.
(1) For calendar years 2011 through
and including 2017—
(i) Greater than $85,000 but less than
or equal to $107,000;
(ii) Greater than $107,000 but less
than or equal to $160,000;
(iii) Greater than $160,000 but less
than or equal to $214,000; and
(iv) Greater than $214,000.
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(2) For calendar year 2018—
(i) Greater than $85,000 but less than
or equal to $107,000;
(ii) Greater than $107,000 but less
than or equal to $133,500;
(iii) Greater than $133,500 but less
than or equal to $160,000; and
(iv) Greater than $160,000
(3) For calendar years beginning with
2019—
(i) Greater than $85,000 but less than
or equal to $107,000;
(ii) Greater than $107,000 but less
than or equal to $133,500;
(iii) Greater than $133,500 but less
than or equal to $160,000;
(iv) Greater than $160,000 but less
than $500,000; and
(v) Greater than or equal to $500,000.
(c) The modified adjusted gross
income ranges for individuals who are
married and filed a joint tax return for
the tax year we use to make the incomerelated monthly adjustment amount
determination are as follows.
(1) For calendar years 2011 through
and including 2017—
(i) Greater than $170,000 but less than
or equal to $214,000;
(ii) Greater than $214,000 but less
than or equal to $320,000;
(iii) Greater than $320,000 but less
than or equal to $428,000; and
(iv) Greater than $428,000.
(2) For calendar year 2018—
(i) Greater than $170,000 but less than
or equal to $214,000;
(ii) Greater than $214,000 but less
than or equal to $267,000;
(iii) Greater than $267,000 but less
than or equal to $320,000; and
(iv) Greater than $320,000.
(3) For calendar years beginning in
2019—
(i) Greater than $170,000 but less than
or equal to $214,000;
(ii) Greater than $214,000 but less
than or equal to $267,000;
(iii) Greater than $267,000 but less
than or equal to $320,000;
(iv) Greater than $320,000 but less
than $750,000; and
(v) Greater than or equal to $750,000.
(d) The modified adjusted gross
income ranges for married individuals
who file a separate return and have
lived with their spouse at any time
during the tax year we use to make the
income-related monthly adjustment
amount determination are as follows.
(1) For calendar years 2011 through
and including 2017—
(i) Greater than $85,000 but less than
or equal to $129,000; and
(ii) Greater than $129,000.
(2) For calendar year 2018—Greater
than $85,000.
(3) For calendar years beginning in
2019—
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(i) Greater than $85,000 but less than
$415,000; and
(ii) Greater than or equal to $415,000.
(e)(1) Subject to paragraph (e)(2) of
this section, in 2019, CMS will set the
modified adjusted gross income ranges
for 2020 and publish them in the
Federal Register. In each year thereafter,
CMS will set the modified adjusted
gross income ranges by increasing the
preceding year’s ranges by any
percentage increase in the Consumer
Price Index rounded to the nearest
$1,000 and will publish the amounts for
the following year in September of each
year.
(2) The amounts listed in paragraphs
(b), (c), and (d) of $415,000, $500,000,
and $750,000 will not be adjusted under
paragraph (e)(1) of this section until
2028. Beginning in 2027, and in each
year thereafter, CMS will adjust these
range amounts for the following year
under paragraph (e)(1) of this section
and publish the updated ranges in the
Federal Register.
■ 4. Amend § 418.1120 by revising
paragraph (b) to read as follows:
§ 418.1120 How do we determine your
income-related monthly adjustment
amount?
*
*
*
*
*
(b) Tables of applicable percentage.
The tables in paragraphs (b)(1) through
(b)(3) of this section contain the
modified adjusted gross income ranges
for calendar years 2011 through and
including 2017, 2018, and beginning in
2019 in the column on the left in each
table. The middle column in each table
shows the percentage of the
unsubsidized Medicare Part B premium
that will be paid by individuals with
modified adjusted gross income that
falls within each of the ranges. The
column on the right in each table shows
the percentage of the Medicare Part B
premium that will be subsidized by
contributions from the Federal
Government. We use your tax filing
status and your modified adjusted gross
income for the tax year to determine
which income-related monthly
adjustment amount to apply to you. The
dollar amount of income-related
monthly adjustment for each range will
be set annually for each year after 2019
as described in paragraph (c) of this
section. The modified adjusted gross
income ranges will be adjusted annually
after 2019 as described in § 418.1115(e).
(1) General tables of applicable
percentages. If, for the tax year, we use
your filing status for your Federal
income taxes for the tax year is single;
head of household; qualifying
widow(er) with dependent child; or
married filing separately and you lived
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Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations
apart from your spouse for the entire tax
year, we will use the general tables of
applicable percentages. When your
modified adjusted gross income for the
year we use is in the range listed in the
left column in the following tables, then
the Federal Government’s Part B
premium subsidy of 75 percent is
reduced to the percentage listed in the
right column. You will pay an amount
based on the percentage listed in the
center column.
Beneficiary
percentage
(percent)
Table 1 to paragraph (b)(1): Modified adjusted gross income effective in 2011–2017
Greater
Greater
Greater
Greater
than
than
than
than
$85,000 but less than or equal to $107,000 ......................................................................................
$107,000 but less than or equal to $160,000 ....................................................................................
$160,000 but less than or equal to $214,000 ....................................................................................
$214,000 ............................................................................................................................................
than
than
than
than
$85,000 but less than or equal to $107,000 ......................................................................................
$107,000 but less than or equal to $133,500 ....................................................................................
$133,500 less than or equal to $160,000 ..........................................................................................
$160,000 ............................................................................................................................................
Greater
Greater
Greater
Greater
Greater
than
than
than
than
than
$85,000 but less than or equal to $107,000 ......................................................................................
$107,000 but less than or equal to $133,500 ....................................................................................
$133,500 but less than or equal to $160,000 ....................................................................................
$160,000 but less than $500,000 ......................................................................................................
or equal to $500,000 ..........................................................................................................................
(2) Tables of applicable percentages
for joint returns. If, for the tax year, we
use your Federal tax filing status is
married filing jointly for the tax year
and your modified adjusted gross
income for that tax year is in the range
listed in the left column in the following
tables, then the Federal Government’s
Part B premium subsidy of 75 percent
is reduced to the percentage listed in the
than
than
than
than
$170,000
$214,000
$320,000
$428,000
than
than
than
than
$170,000
$214,000
$267,000
$320,000
but less than or equal to $214,000 ....................................................................................
but less than or equal to $320,000 ....................................................................................
but less than or equal to $428,000 ....................................................................................
............................................................................................................................................
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than
than
than
than
than
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but less than or equal to $214,000 ....................................................................................
but less than or equal to $267,000 ....................................................................................
but less than or equal to $320,000 ....................................................................................
............................................................................................................................................
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65
50
35
20
15
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Federal
premium
subsidy
(percent)
65
50
35
20
Federal
premium
subsidy
(percent)
35
50
65
80
Beneficiary
percentage
(percent)
$170,000 but less than or equal to $214,000 ....................................................................................
$214,000 but less than or equal to $267,000 ....................................................................................
$267,000 but less than or equal to $320,000 ....................................................................................
$320,000 but less than $750,000 ......................................................................................................
or equal to $750,000 ..........................................................................................................................
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Federal
premium
subsidy
(percent)
35
50
65
80
Beneficiary
percentage
(percent)
Table 3 to paragraph (b)(2): Modified adjusted gross income effective beginning in 2019
Greater
Greater
Greater
Greater
Greater
65
50
35
20
35
50
65
80
85
Beneficiary
percentage
(percent)
Table 2 to paragraph (b)(2): Modified adjusted gross income effective in 2018
Greater
Greater
Greater
Greater
Federal
premium
subsidy
(percent)
right column. You will pay an amount
based on the percentage listed in the
center column.
Table 1 to paragraph (b)(2): Modified adjusted gross income effective in 2011–2017
Greater
Greater
Greater
Greater
65
50
35
20
35
50
65
80
Beneficiary
percentage
(percent)
Table 3 to paragraph (b)(1): Modified adjusted gross income effective beginning in 2019
Federal
premium
subsidy
(percent)
35
50
65
80
Beneficiary
percentage
(percent)
Table 2 to paragraph (b)(1): Modified adjusted gross income effective in 2018
Greater
Greater
Greater
Greater
55629
35
50
65
80
85
65
50
35
20
Federal
premium
subsidy
(percent)
65
50
35
20
15
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(3) Tables of applicable percentages
for married individuals filing separate
returns. If, for the tax year, we use your
Federal tax filing status is married filing
separately, you lived with your spouse
at some time during that tax year, and
your modified adjusted gross income is
in the range listed in the left column in
the following tables, then the Federal
Government’s Part B premium subsidy
of 75 percent is reduced to the
percentage listed in the right column.
You will pay an amount based on the
percentage listed in the center column.
Beneficiary
percentage
(percent)
Table 1 to paragraph (b)(3): Modified adjusted gross income effective in 2011–2017
Greater than $85,000 but less than or equal to $129,000 ......................................................................................
Greater than $129,000 ............................................................................................................................................
Greater than $85,000 ..............................................................................................................................................
Greater than $85,000 but less than $415,000 ........................................................................................................
Greater than or equal to $415,000 ..........................................................................................................................
*
*
*
*
Subpart C—Income-Related Monthly
Adjustments to Medicare Prescription
Drug Coverage Premiums
5. The authority citation for subpart C
of part 418 continues to read as follows:
■
Authority: Secs. 702(a)(5), 1860D–13(a)
and (c) of the Social Security Act (42 U.S.C.
902(a)(5), 1395w–113(a) and (c)).
6. Amend § 418.2115 by:
a. Revising the first sentence in
paragraph (a); and
■ b. Revising paragraphs (b), (c), (d), and
(e).
The revisions read as follows:
■
■
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§ 418.2115 What are the modified adjusted
gross income ranges?
(a) We list the modified adjusted gross
income ranges for the calendar years
2011 through and including 2017, 2018,
and beginning in 2019 for each Federal
tax filing category in paragraphs (b), (c)
and (d) of this section. * * *
(b) The modified adjusted gross
income ranges for individuals with a
Federal tax filing status of single, head
of household, qualifying widow(er) with
dependent child, and married filing
separately when the individual has
lived apart from his/her spouse for the
entire tax year for the year we use to
make our income-related monthly
adjustment amount determination are as
follows:
(1) For calendar years 2011 through
and including 2017—
(i) Greater than $85,000 but less than
or equal to $107,000;
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(ii) Greater than $107,000 but less
than or equal to $160,000;
(iii) Greater than $160,000 but less
than or equal to $214,000; and
(iv) Greater than $214,000.
(2) For calendar year 2018—
(i) Greater than $85,000 but less than
$107,000;
(ii) Greater than $107,000 but less
than $133,500;
(iii) Greater than $133,500 but less
than $160,000; and
(iv) Greater than $160,000.
(3) For calendar years beginning in
2019—
(i) Greater than $85,000 but less than
or equal to $107,000;
(ii) Greater than $107,000 but less
than or equal to $133,500;
(iii) Greater than $133,500 but less
than or equal to $160,000;
(iv) Greater than $160,000 but less
than $500,000; and
(v) Greater than or equal to $500,000.
(c) The modified adjusted gross
income ranges for individuals who are
married and filed a joint tax return for
the tax year we use to make the incomerelated monthly adjustment amount
determination are as follows.
(1) For calendar years 2011 through
2017—
(i) Greater than $170,000 but less than
or equal to $214,000;
(ii) Greater than $214,000 but less
than or equal to $320,000;
(iii) Greater than $320,000 but less
than or equal to $428,000; and
(iv) Greater than $428,000.
(2) For calendar year 2018—
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35
20
Federal
premium
subsidy
(percent)
80
Beneficiary
percentage
(percent)
Table 3 to paragraph (b)(3): Modified adjusted gross income effective beginning in 2019
*
65
80
Beneficiary
percentage
(percent)
Table 2 to paragraph (b)(3): Modified adjusted gross income effective in 2018
Federal
premium
subsidy
(percent)
80
85
20
Federal
premium
subsidy
(percent)
20
15
(i) Greater than $170,000 but less than
or equal to $214,000;
(ii) Greater than $214,000 but less
than or equal to $267,000;
(iii) Greater than $267,000 but less
than or equal to $320,000; and
(iv) Greater than $320,000.
(3) For calendar years beginning in
2019—
(i) Greater than $170,000 but less than
or equal to $214,000;
(ii) Greater than $214,000 but less
than or equal to $267,000;
(iii) Greater than $267,000 but less
than or equal to $320,000;
(iv) Greater than $320,000 but less
than $750,000; and
(v) Greater than or equal to $750,000.
(d) The modified adjusted gross
income ranges for married individuals
who file a separate return and have
lived with their spouse at any time
during the tax year we use to make the
income-related monthly adjustment
amount determination are as follows:
(1) For calendar years 2011 through
and including 2017—
(i) Greater than $85,000 but less than
or equal to $129,000; and
(ii) Greater than $129,000.
(2) For calendar year 2018—Greater
than $85,000.
(3) For calendar years beginning in
2019—
(i) Greater than $85,000 but less than
$415,000; and
(ii) Greater than or equal to $415,000.
(e)(1) Subject to paragraph (e)(2) of
this section, in 2019, CMS will set the
modified adjusted gross income ranges
E:\FR\FM\07NOR1.SGM
07NOR1
Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations
for 2020 and publish them in the
Federal Register. In each year thereafter,
CMS will set the modified adjusted
gross income ranges by increasing the
preceding year’s ranges by any
percentage increase in the Consumer
Price Index rounded to the nearest
$1,000 and will publish the amounts for
the following year in September of each
year.
(2) The amounts listed in paragraphs
(b), (c), and (d) of $415,000, $500,000,
and $750,000 will not be adjusted under
paragraph (e)(1) of this section until
2028. Beginning in 2027, and in each
year thereafter, CMS will adjust these
range amounts for the following year
under paragraph (e)(1) of this section
and publish the updated ranges in the
Federal Register.
7. Amend § 418.2120 by revising
paragraph (b) to read as follows:
■
§ 418.2120 How do we determine your
income-related monthly adjustment
amount?
*
*
*
*
*
(b) Tables of applicable percentage.
The tables in paragraphs (b)(1) through
(b)(3) of this section contain the
modified adjusted gross income ranges
for calendar years 2011 through and
including 2017, 2018, and 2019, and the
corresponding percentage of the cost of
basic Medicare prescription drug
coverage that individuals with modified
adjusted gross incomes that fall within
each of the ranges will pay. The
monthly dollar amounts will be
determined by CMS using the formula
in section 1860D–13(a)(7)(B) of the Act.
Based on your tax filing status for the
tax year we use to make a determination
about your income-related monthly
adjustment amount, we will determine
which table is applicable to you. We
will use your modified adjusted gross
income to determine which incomerelated monthly adjustment amount to
apply to you. The dollar amounts used
for each of the ranges of income-related
monthly adjustment will be set annually
after 2019 as described in paragraph (c)
of this section. The modified adjusted
gross income ranges will be adjusted
annually after 2019 as described in
§ 418.2115(e).
(1) General tables of applicable
percentages. If your filing status for your
Federal income taxes for the tax year we
use is single; head of household;
qualifying widow(er) with dependent
child; or married filing separately and
you lived apart from your spouse for the
entire tax year, we will use the general
tables of applicable percentages. When
your modified adjusted gross income for
the year we use is in the range listed in
the left column in the following tables,
you will pay an amount based on the
percentage listed in the right column,
which represents a percentage of the
cost of basic Medicare prescription drug
coverage.
Beneficiary
percentage
(percent)
Table 1 to paragraph (b)(1): Modified adjusted gross income effective in 2011–2017
Greater
Greater
Greater
Greater
than
than
than
than
$85,000 but less than or equal to $107,000 ..................................................................................................................
$107,000 but less than or equal to $160,000 ................................................................................................................
$160,000 but less than or equal to $214,000 ................................................................................................................
$214,000 ........................................................................................................................................................................
than
than
than
than
$85,000 but less than or equal to $107,000 ..................................................................................................................
$107,000 but less than or equal to $133,500 ................................................................................................................
$133,500 but less than or equal to $160,000 ................................................................................................................
$160,000 ........................................................................................................................................................................
Table 3 to paragraph (b)(1): Modified adjusted gross income effective beginning in 2019
Greater
Greater
Greater
Greater
Greater
than
than
than
than
than
$85,000 but less than or equal to $107,000 ..................................................................................................................
$107,000 but less than or equal to $133,500 ................................................................................................................
$133,500 but less than or equal to $160,000 ................................................................................................................
$160,000 but less than $500,000 ..................................................................................................................................
or equal to $500,000 ......................................................................................................................................................
(2) Tables of applicable percentages
for joint returns. If your Federal tax
filing status is married filing jointly for
the tax year we use and your modified
adjusted gross income for that tax year
is in the range listed in the left column
in the following tables, you will pay an
amount based on the percentage listed
amozie on DSK3GDR082PROD with RULES
than
than
than
than
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$170,000
$214,000
$320,000
$428,000
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Beneficiary
percentage
(percent)
35
50
65
80
85
Beneficiary
percentage
(percent)
but less than or equal to $214,000 ................................................................................................................
but less than or equal to $320,000 ................................................................................................................
but less than or equal to $428,000 ................................................................................................................
........................................................................................................................................................................
16:15 Nov 06, 2018
35
50
65
80
in the right column, which represents a
percentage of the cost of basic Medicare
prescription drug coverage.
Table 1 to paragraph (b)(2): Modified adjusted gross income effective in 2011–2017
Greater
Greater
Greater
Greater
35
50
65
80
Beneficiary
percentage
(percent)
Table 2 to paragraph (b)(1): Modified adjusted gross income effective in 2018
Greater
Greater
Greater
Greater
55631
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35
50
65
80
55632
Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations
Beneficiary
percentage
(percent)
Table 2 to paragraph (b)(2): Modified adjusted gross income effective in 2018
Greater
Greater
Greater
Greater
than
than
than
than
$170,000
$214,000
$267,000
$320,000
but less than or equal to $214,000 ................................................................................................................
but less than or equal to $267,000 ................................................................................................................
but less than or equal to $320,000 ................................................................................................................
........................................................................................................................................................................
Table 3 to paragraph (b)(2): Modified adjusted gross income effective beginning in 2019
Greater
Greater
Greater
Greater
Greater
than
than
than
than
than
$170,000 but less than or equal to $214,000 ................................................................................................................
$214,000 but less than or equal to $267,000 ................................................................................................................
$267,000 but less than or equal to $320,000 ................................................................................................................
$320,000 but less than $750,000 ..................................................................................................................................
or equal to $750,000 ......................................................................................................................................................
(3) Tables of applicable percentages
for married individuals filing separate
returns. If, for the tax year we use, your
Federal tax filing status is married filing
separately, you lived with your spouse
at some time during that tax year, and
your modified adjusted gross income is
in the range listed in the left column in
the following tables, you will pay an
amount based on the percentage listed
Greater than $85,000 ..........................................................................................................................................................................
Table 3 to paragraph (b)(3): Modified adjusted gross income effective beginning in 2019
Greater than $85,000 but less than $415,000 ....................................................................................................................................
Greater than or equal to $415,000 ......................................................................................................................................................
*
*
*
BILLING CODE 4191–02–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9842]
RIN 1545–BO63
amozie on DSK3GDR082PROD with RULES
Tax Return Preparer Due Diligence
Penalty Under Section 6695(g)
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulation and removal of
temporary regulation.
AGENCY:
This document contains final
regulations relating to the tax return
SUMMARY:
VerDate Sep<11>2014
16:15 Nov 06, 2018
Jkt 247001
preparer penalty. The final regulations
are necessary to implement recent law
changes that expand the scope of the tax
return preparer due diligence penalty so
that it applies to the child tax credit
(CTC)/additional child tax credit
(ACTC), and the American opportunity
tax credit (AOTC) as well as to
eligibility to file a return or claim for
refund as head of household. The
regulations affect tax return preparers.
DATES:
Effective date: These regulations are
effective November 7, 2018.
Applicability date: For the
applicability date, see § 1.6695–2(e).
FOR FURTHER INFORMATION CONTACT:
Marshall French, 202–317–6845 (not a
toll-free number).
Paperwork Reduction Act
The collection of information in
current § 1.6695–2 was previously
PO 00000
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Sfmt 4700
65
80
Beneficiary
percentage
(percent)
Table 2 to paragraph (b)(3): Modified adjusted gross income effective in 2018
*
35
50
65
80
85
Beneficiary
percentage
(percent)
Greater than $85,000 but less than or equal to $129,000 ..................................................................................................................
Greater than $129,000 ........................................................................................................................................................................
[FR Doc. 2018–24336 Filed 11–6–18; 8:45 am]
Beneficiary
percentage
(percent)
in the right column, which represents a
percentage of the cost of basic Medicare
prescription drug coverage.
Table 1 to paragraph (b)(3): Modified adjusted gross income effective in 2011–2017
*
35
50
65
80
80
Beneficiary
percentage
(percent)
80
85
reviewed and approved under control
number 1545–1570. Control number
1545–1570 was discontinued in 2014, as
the burden for the collection of
information contained in § 1.6695–2 is
reflected in the burden for Form 8867,
‘‘Paid Preparer’s Due Diligence
Checklist,’’ under control number 1545–
1629.
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments
to the Income Tax Regulations (26 CFR
part 1) under section 6695(g) of the
Internal Revenue Code (Code) regarding
the tax return preparer due diligence
requirements.
Prior to 2016, section 6695(g) imposed
a penalty on tax return preparers who
failed to comply with due diligence
requirements set forth in regulations
prescribed by the Secretary with respect
E:\FR\FM\07NOR1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 216 (Wednesday, November 7, 2018)]
[Rules and Regulations]
[Pages 55626-55632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24336]
=======================================================================
-----------------------------------------------------------------------
SOCIAL SECURITY ADMINISTRATION
20 CFR Part 418
[Docket No. SSA-2018-0041]
RIN 0960-AI37
Income-Related Monthly Adjustment Amounts for Medicare Part B and
Prescription Drug Coverage Premiums
AGENCY: Social Security Administration.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Medicare Access and CHIP Reauthorization Act of 2015
(MACRA) changed the modified adjusted gross income (MAGI) ranges
associated with Medicare Part B and Medicare prescription drug coverage
premiums for years beginning in 2018. The Bipartisan Budget Act of 2018
(BBA 2018) revised the MAGI ranges again for years beginning with 2019.
We consider a beneficiary's MAGI and tax filing status to determine:
The percentage of the unsubsidized Medicare Part B premium that the
beneficiary must pay; and the percentage of the cost of basic Medicare
prescription drug coverage the beneficiary must pay. This final rule
makes our regulations consistent with the MAGI ranges specified by
MACRA and BBA 2018.
DATES: This rule is effective November 7, 2018.
FOR FURTHER INFORMATION CONTACT: Donald Murphy, Office of Income
Security Programs, Social Security Administration, 6401 Security
Boulevard, Baltimore, MD 21235-6401, (410) 965-9090. For information on
eligibility or filing for benefits, call our national toll-free number,
1-800-772-1213, or TTY 1-800-325-0778, or visit our internet site,
Social Security Online, at https://www.socialsecurity.gov.
SUPPLEMENTARY INFORMATION:
[[Page 55627]]
Background
For Medicare Part B, the income-related monthly adjustment amount
(IRMAA) is the amount that a beneficiary must pay in addition to the
Medicare Part B standard monthly premium when the beneficiary's MAGI is
above a specified threshold.\1\ For Medicare prescription drug
coverage, IRMAA is an amount that a beneficiary will pay in addition to
the Medicare prescription drug coverage plan monthly premium when the
beneficiary's MAGI is above the specified threshold.\2\
---------------------------------------------------------------------------
\1\ Medicare Part B standard monthly premiums may also be
increased for late enrollment and for reenrollment. See 42 CFR
408.22 for an explanation.
\2\ Medicare prescription drug coverage premiums may also be
increased for the reasons found in 42 CFR 423.286.
---------------------------------------------------------------------------
To determine a beneficiary's IRMAA, we consider the beneficiary's
MAGI, together with tax filing status, to determine: (1) The percentage
of the unsubsidized Medicare Part B premium the beneficiary must pay;
and (2) the percentage of the cost of basic Medicare prescription drug
coverage that the beneficiary must pay.
In our regulations, we use lists and tables to show the MAGI ranges
we use to determine IRMAA for specific years. The lists associated with
both Medicare Part B and Medicare prescription drug coverage specify
the MAGI ranges. The tables associated with Medicare Part B show,
within each MAGI range, the percentage of the unsubsidized Medicare
Part B premium that beneficiaries must pay and the percentage that will
be subsidized by contributions from the Federal Government. The tables
associated with prescription drug coverage show, within each MAGI
range, the percentage of the cost of basic Medicare prescription drug
coverage the beneficiaries must pay.
MACRA \3\ changed the MAGI ranges associated with Medicare Part B
and prescription drug coverage premiums for years beginning in 2018.
BBA 2018 \4\ changed the MAGI ranges associated with Medicare Part B
and prescription drug coverage premiums for years beginning in 2019.
Based on these changes, we revised the lists and tables to show the
updated MAGI ranges and associated figures for 2018 and for years
beginning in 2019. In each case, the MAGI ranges are subject to an
inflation adjustment for calendar years beginning in 2020, as we
explain in sections 418.1105(c), 418.1115(e), 418.2105(c), and
418.2115(e).
---------------------------------------------------------------------------
\3\ Public Law 114-10, section 402, 129 Stat. 87, 160.
\4\ Public Law 115-123, section 53114.
---------------------------------------------------------------------------
Explanation of Changes
The changes detailed below make our regulations consistent with the
updates specified by MACRA and BBA 2018.
In Sec. 418.1115 and Sec. 418.2115, we updated the lists of MAGI
ranges for beneficiaries of all tax filing statuses for 2018 and for
years beginning in 2019.
In Sec. 418.1120 and Sec. 418.2120, we added tables to show the
figures that are applicable for 2018 and for years beginning in 2019.
The tables in Sec. 418.1120 show the updated MAGI ranges, and within
each range, the percentage of the unsubsidized Medicare Part B premium
that will be paid by beneficiaries and the percentage of the Medicare
Part B premium that will be subsidized by contributions from the
Federal Government. The tables in Sec. 418.2120 show the updated MAGI
ranges, and within each range, the percentage of the cost of basic
Medicare prescription drug coverage that beneficiaries will pay.
We also made minor conforming changes in these sections.
Regulatory Procedures
We follow the Administrative Procedure Act (APA) rulemaking
procedures specified in 5 U.S.C. 553 when we develop regulations.
Generally, the APA requires that an agency provide prior notice and
opportunity for public comment before issuing a final rule. The APA
provides exceptions to its notice and public comment procedures when an
agency finds there is good cause for dispensing with such procedures
because they are impracticable, unnecessary, or contrary to the public
interest.
We find that there is good cause under 5 U.S.C. 553(b)(B) to issue
this regulatory change as a final rule without prior public comment. We
find that prior public comment is unnecessary because this final rule
merely makes our regulations (20 CFR 418.1115, 418.1120, 418.2115, and
418.2120) consistent with the MAGI ranges specified by MACRA and BBA
2018. BBA 2018 indicated that the new amounts for 2019 must be in place
by calendar year 2019. Importantly, we have no agency discretion for
establishing these figures. Accordingly, we find there is good cause to
issue this final rule without prior public comment.
In addition, we find that there is good cause for dispensing with
the 30-day delay in the effective date of a substantive rule provided
by 5 U.S.C. 553(d)(3). As we explained above, these final rules merely
make our regulations consistent with the MAGI ranges specified by
Congress in the law. Those MAGI ranges need to be in place by calendar
year 2019. We find that it is unnecessary to delay the effective date
of the final rule because the rule merely reflects the changes to the
law that Congress has already made. In addition, we find that it is in
the public interest to make this final rule effective on the date of
publication in order to ensure that our rules accurately reflect the
statute when the MAGI ranges for 2019 become effective.
Executive Order (E.O.) 12866, as Supplemented by E.O. 13563
We consulted with the Office of Management and Budget (OMB) and
determined that this final rule does not meet the criteria for a
significant regulatory action under E.O. 12866, as supplemented by E.O.
13563. Thus, OMB did not review the final rule.
We also determined that this final rule meets the plain language
requirement of E.O. 12866.
E.O. 13132 (Federalism)
We analyzed this rule in accordance with the principles and
criteria established by Executive Order 13132, and determined that the
rule will not have sufficient Federalism implications to warrant the
preparation of a Federalism assessment. We also determined that this
rule will not preempt any State law or State regulation or affect the
States' abilities to discharge traditional State governmental
functions.
Regulatory Flexibility Act
We certify that these rules will not have a significant economic
impact on a substantial number of small entities because they affect
individuals only. Therefore, a regulatory flexibility analysis is not
required under the Regulatory Flexibility Act, as amended.
E.O. 13771
This regulation does not impose novel costs on the public and as
such is considered an exempt regulatory action under E.O. 13771.
Paperwork Reduction Act
This rule does not create any new or affect any existing
collections and, therefore, does not require Office of Management and
Budget approval under the Paperwork Reduction Act.
(Catalog of Federal Domestic Assistance Program Nos. 96.001, Social
Security--Disability Insurance; 96.002, Social Security--Retirement
Insurance; 96.004, Social Security--Survivors Insurance; and 96.006,
Supplemental Security Income).
[[Page 55628]]
List of Subjects in 20 CFR Part 418
Administrative practice and procedure, Aged, Blind, Disability
benefits, Medicare, Reporting and recordkeeping requirements.
Nancy A. Berryhill,
Acting Commissioner of Social Security.
For the reasons set forth in the preamble, we amend subpart B and
subpart C of part 418 of title 20 of the Code of Federal Regulations as
set forth below:
PART 418--MEDICARE SUBSIDIES
Subpart B--Medicare Part B Income-Related Monthly Adjustment Amount
0
1. The authority citation for subpart B of part 418 continues to read
as follows:
Authority: Secs. 702(a)(5) and 1839(i) of the Social Security
Act (42 U.S.C. 902(a)(5) and 1395r(i)).
0
2. Amend Sec. 418.1001 by revising the first sentence of the
introductory text to read as follows:
Sec. 418.1001 What is this subpart about?
This subpart relates to section 1839(i) of the Social Security Act
(the Act), as amended. * * *
* * * * *
0
3. Amend Sec. 418.1115 by:
0
a. Revising the first sentence of paragraph (a); and
0
b. Revising paragraphs (b), (c), (d), and (e).
The revisions read as follows:
Sec. 418.1115 What are the modified adjusted gross income ranges?
(a) We list the modified adjusted gross income ranges for the
calendar years 2011 through and including 2017, 2018, and for years
beginning in 2019 for each Federal tax filing category in paragraphs
(b), (c) and (d) of this section. * * *
(b) The modified adjusted gross income ranges for individuals with
a Federal tax filing status of single, head of household, qualifying
widow(er) with dependent child, and married filing separately when the
individual has lived apart from his/her spouse for the entire tax year
for the year we use to make our income-related monthly adjustment
amount determination are as follows.
(1) For calendar years 2011 through and including 2017--
(i) Greater than $85,000 but less than or equal to $107,000;
(ii) Greater than $107,000 but less than or equal to $160,000;
(iii) Greater than $160,000 but less than or equal to $214,000; and
(iv) Greater than $214,000.
(2) For calendar year 2018--
(i) Greater than $85,000 but less than or equal to $107,000;
(ii) Greater than $107,000 but less than or equal to $133,500;
(iii) Greater than $133,500 but less than or equal to $160,000; and
(iv) Greater than $160,000
(3) For calendar years beginning with 2019--
(i) Greater than $85,000 but less than or equal to $107,000;
(ii) Greater than $107,000 but less than or equal to $133,500;
(iii) Greater than $133,500 but less than or equal to $160,000;
(iv) Greater than $160,000 but less than $500,000; and
(v) Greater than or equal to $500,000.
(c) The modified adjusted gross income ranges for individuals who
are married and filed a joint tax return for the tax year we use to
make the income-related monthly adjustment amount determination are as
follows.
(1) For calendar years 2011 through and including 2017--
(i) Greater than $170,000 but less than or equal to $214,000;
(ii) Greater than $214,000 but less than or equal to $320,000;
(iii) Greater than $320,000 but less than or equal to $428,000; and
(iv) Greater than $428,000.
(2) For calendar year 2018--
(i) Greater than $170,000 but less than or equal to $214,000;
(ii) Greater than $214,000 but less than or equal to $267,000;
(iii) Greater than $267,000 but less than or equal to $320,000; and
(iv) Greater than $320,000.
(3) For calendar years beginning in 2019--
(i) Greater than $170,000 but less than or equal to $214,000;
(ii) Greater than $214,000 but less than or equal to $267,000;
(iii) Greater than $267,000 but less than or equal to $320,000;
(iv) Greater than $320,000 but less than $750,000; and
(v) Greater than or equal to $750,000.
(d) The modified adjusted gross income ranges for married
individuals who file a separate return and have lived with their spouse
at any time during the tax year we use to make the income-related
monthly adjustment amount determination are as follows.
(1) For calendar years 2011 through and including 2017--
(i) Greater than $85,000 but less than or equal to $129,000; and
(ii) Greater than $129,000.
(2) For calendar year 2018--Greater than $85,000.
(3) For calendar years beginning in 2019--
(i) Greater than $85,000 but less than $415,000; and
(ii) Greater than or equal to $415,000.
(e)(1) Subject to paragraph (e)(2) of this section, in 2019, CMS
will set the modified adjusted gross income ranges for 2020 and publish
them in the Federal Register. In each year thereafter, CMS will set the
modified adjusted gross income ranges by increasing the preceding
year's ranges by any percentage increase in the Consumer Price Index
rounded to the nearest $1,000 and will publish the amounts for the
following year in September of each year.
(2) The amounts listed in paragraphs (b), (c), and (d) of $415,000,
$500,000, and $750,000 will not be adjusted under paragraph (e)(1) of
this section until 2028. Beginning in 2027, and in each year
thereafter, CMS will adjust these range amounts for the following year
under paragraph (e)(1) of this section and publish the updated ranges
in the Federal Register.
0
4. Amend Sec. 418.1120 by revising paragraph (b) to read as follows:
Sec. 418.1120 How do we determine your income-related monthly
adjustment amount?
* * * * *
(b) Tables of applicable percentage. The tables in paragraphs
(b)(1) through (b)(3) of this section contain the modified adjusted
gross income ranges for calendar years 2011 through and including 2017,
2018, and beginning in 2019 in the column on the left in each table.
The middle column in each table shows the percentage of the
unsubsidized Medicare Part B premium that will be paid by individuals
with modified adjusted gross income that falls within each of the
ranges. The column on the right in each table shows the percentage of
the Medicare Part B premium that will be subsidized by contributions
from the Federal Government. We use your tax filing status and your
modified adjusted gross income for the tax year to determine which
income-related monthly adjustment amount to apply to you. The dollar
amount of income-related monthly adjustment for each range will be set
annually for each year after 2019 as described in paragraph (c) of this
section. The modified adjusted gross income ranges will be adjusted
annually after 2019 as described in Sec. 418.1115(e).
(1) General tables of applicable percentages. If, for the tax year,
we use your filing status for your Federal income taxes for the tax
year is single; head of household; qualifying widow(er) with dependent
child; or married filing separately and you lived
[[Page 55629]]
apart from your spouse for the entire tax year, we will use the general
tables of applicable percentages. When your modified adjusted gross
income for the year we use is in the range listed in the left column in
the following tables, then the Federal Government's Part B premium
subsidy of 75 percent is reduced to the percentage listed in the right
column. You will pay an amount based on the percentage listed in the
center column.
------------------------------------------------------------------------
Federal
Table 1 to paragraph (b)(1): Modified Beneficiary premium
adjusted gross income effective in 2011- percentage subsidy
2017 (percent) (percent)
------------------------------------------------------------------------
Greater than $85,000 but less than or 35 65
equal to $107,000......................
Greater than $107,000 but less than or 50 50
equal to $160,000......................
Greater than $160,000 but less than or 65 35
equal to $214,000......................
Greater than $214,000................... 80 20
------------------------------------------------------------------------
------------------------------------------------------------------------
Federal
Table 2 to paragraph (b)(1): Modified Beneficiary premium
adjusted gross income effective in 2018 percentage subsidy
(percent) (percent)
------------------------------------------------------------------------
Greater than $85,000 but less than or 35 65
equal to $107,000......................
Greater than $107,000 but less than or 50 50
equal to $133,500......................
Greater than $133,500 less than or equal 65 35
to $160,000............................
Greater than $160,000................... 80 20
------------------------------------------------------------------------
------------------------------------------------------------------------
Federal
Table 3 to paragraph (b)(1): Modified Beneficiary premium
adjusted gross income effective percentage subsidy
beginning in 2019 (percent) (percent)
------------------------------------------------------------------------
Greater than $85,000 but less than or 35 65
equal to $107,000......................
Greater than $107,000 but less than or 50 50
equal to $133,500......................
Greater than $133,500 but less than or 65 35
equal to $160,000......................
Greater than $160,000 but less than 80 20
$500,000...............................
Greater than or equal to $500,000....... 85 15
------------------------------------------------------------------------
(2) Tables of applicable percentages for joint returns. If, for the
tax year, we use your Federal tax filing status is married filing
jointly for the tax year and your modified adjusted gross income for
that tax year is in the range listed in the left column in the
following tables, then the Federal Government's Part B premium subsidy
of 75 percent is reduced to the percentage listed in the right column.
You will pay an amount based on the percentage listed in the center
column.
------------------------------------------------------------------------
Federal
Table 1 to paragraph (b)(2): Modified Beneficiary premium
adjusted gross income effective in 2011- percentage subsidy
2017 (percent) (percent)
------------------------------------------------------------------------
Greater than $170,000 but less than or 35 65
equal to $214,000......................
Greater than $214,000 but less than or 50 50
equal to $320,000......................
Greater than $320,000 but less than or 65 35
equal to $428,000......................
Greater than $428,000................... 80 20
------------------------------------------------------------------------
------------------------------------------------------------------------
Federal
Table 2 to paragraph (b)(2): Modified Beneficiary premium
adjusted gross income effective in 2018 percentage subsidy
(percent) (percent)
------------------------------------------------------------------------
Greater than $170,000 but less than or 35 65
equal to $214,000......................
Greater than $214,000 but less than or 50 50
equal to $267,000......................
Greater than $267,000 but less than or 65 35
equal to $320,000......................
Greater than $320,000................... 80 20
------------------------------------------------------------------------
------------------------------------------------------------------------
Federal
Table 3 to paragraph (b)(2): Modified Beneficiary premium
adjusted gross income effective percentage subsidy
beginning in 2019 (percent) (percent)
------------------------------------------------------------------------
Greater than $170,000 but less than or 35 65
equal to $214,000......................
Greater than $214,000 but less than or 50 50
equal to $267,000......................
Greater than $267,000 but less than or 65 35
equal to $320,000......................
Greater than $320,000 but less than 80 20
$750,000...............................
Greater than or equal to $750,000....... 85 15
------------------------------------------------------------------------
[[Page 55630]]
(3) Tables of applicable percentages for married individuals filing
separate returns. If, for the tax year, we use your Federal tax filing
status is married filing separately, you lived with your spouse at some
time during that tax year, and your modified adjusted gross income is
in the range listed in the left column in the following tables, then
the Federal Government's Part B premium subsidy of 75 percent is
reduced to the percentage listed in the right column. You will pay an
amount based on the percentage listed in the center column.
------------------------------------------------------------------------
Federal
Table 1 to paragraph (b)(3): Modified Beneficiary premium
adjusted gross income effective in 2011- percentage subsidy
2017 (percent) (percent)
------------------------------------------------------------------------
Greater than $85,000 but less than or 65 35
equal to $129,000......................
Greater than $129,000................... 80 20
------------------------------------------------------------------------
------------------------------------------------------------------------
Federal
Table 2 to paragraph (b)(3): Modified Beneficiary premium
adjusted gross income effective in 2018 percentage subsidy
(percent) (percent)
------------------------------------------------------------------------
Greater than $85,000.................... 80 20
------------------------------------------------------------------------
------------------------------------------------------------------------
Federal
Table 3 to paragraph (b)(3): Modified Beneficiary premium
adjusted gross income effective percentage subsidy
beginning in 2019 (percent) (percent)
------------------------------------------------------------------------
Greater than $85,000 but less than 80 20
$415,000...............................
Greater than or equal to $415,000....... 85 15
------------------------------------------------------------------------
* * * * *
Subpart C--Income-Related Monthly Adjustments to Medicare
Prescription Drug Coverage Premiums
0
5. The authority citation for subpart C of part 418 continues to read
as follows:
Authority: Secs. 702(a)(5), 1860D-13(a) and (c) of the Social
Security Act (42 U.S.C. 902(a)(5), 1395w-113(a) and (c)).
0
6. Amend Sec. 418.2115 by:
0
a. Revising the first sentence in paragraph (a); and
0
b. Revising paragraphs (b), (c), (d), and (e).
The revisions read as follows:
Sec. 418.2115 What are the modified adjusted gross income ranges?
(a) We list the modified adjusted gross income ranges for the
calendar years 2011 through and including 2017, 2018, and beginning in
2019 for each Federal tax filing category in paragraphs (b), (c) and
(d) of this section. * * *
(b) The modified adjusted gross income ranges for individuals with
a Federal tax filing status of single, head of household, qualifying
widow(er) with dependent child, and married filing separately when the
individual has lived apart from his/her spouse for the entire tax year
for the year we use to make our income-related monthly adjustment
amount determination are as follows:
(1) For calendar years 2011 through and including 2017--
(i) Greater than $85,000 but less than or equal to $107,000;
(ii) Greater than $107,000 but less than or equal to $160,000;
(iii) Greater than $160,000 but less than or equal to $214,000; and
(iv) Greater than $214,000.
(2) For calendar year 2018--
(i) Greater than $85,000 but less than $107,000;
(ii) Greater than $107,000 but less than $133,500;
(iii) Greater than $133,500 but less than $160,000; and
(iv) Greater than $160,000.
(3) For calendar years beginning in 2019--
(i) Greater than $85,000 but less than or equal to $107,000;
(ii) Greater than $107,000 but less than or equal to $133,500;
(iii) Greater than $133,500 but less than or equal to $160,000;
(iv) Greater than $160,000 but less than $500,000; and
(v) Greater than or equal to $500,000.
(c) The modified adjusted gross income ranges for individuals who
are married and filed a joint tax return for the tax year we use to
make the income-related monthly adjustment amount determination are as
follows.
(1) For calendar years 2011 through 2017--
(i) Greater than $170,000 but less than or equal to $214,000;
(ii) Greater than $214,000 but less than or equal to $320,000;
(iii) Greater than $320,000 but less than or equal to $428,000; and
(iv) Greater than $428,000.
(2) For calendar year 2018--
(i) Greater than $170,000 but less than or equal to $214,000;
(ii) Greater than $214,000 but less than or equal to $267,000;
(iii) Greater than $267,000 but less than or equal to $320,000; and
(iv) Greater than $320,000.
(3) For calendar years beginning in 2019--
(i) Greater than $170,000 but less than or equal to $214,000;
(ii) Greater than $214,000 but less than or equal to $267,000;
(iii) Greater than $267,000 but less than or equal to $320,000;
(iv) Greater than $320,000 but less than $750,000; and
(v) Greater than or equal to $750,000.
(d) The modified adjusted gross income ranges for married
individuals who file a separate return and have lived with their spouse
at any time during the tax year we use to make the income-related
monthly adjustment amount determination are as follows:
(1) For calendar years 2011 through and including 2017--
(i) Greater than $85,000 but less than or equal to $129,000; and
(ii) Greater than $129,000.
(2) For calendar year 2018--Greater than $85,000.
(3) For calendar years beginning in 2019--
(i) Greater than $85,000 but less than $415,000; and
(ii) Greater than or equal to $415,000.
(e)(1) Subject to paragraph (e)(2) of this section, in 2019, CMS
will set the modified adjusted gross income ranges
[[Page 55631]]
for 2020 and publish them in the Federal Register. In each year
thereafter, CMS will set the modified adjusted gross income ranges by
increasing the preceding year's ranges by any percentage increase in
the Consumer Price Index rounded to the nearest $1,000 and will publish
the amounts for the following year in September of each year.
(2) The amounts listed in paragraphs (b), (c), and (d) of $415,000,
$500,000, and $750,000 will not be adjusted under paragraph (e)(1) of
this section until 2028. Beginning in 2027, and in each year
thereafter, CMS will adjust these range amounts for the following year
under paragraph (e)(1) of this section and publish the updated ranges
in the Federal Register.
0
7. Amend Sec. 418.2120 by revising paragraph (b) to read as follows:
Sec. 418.2120 How do we determine your income-related monthly
adjustment amount?
* * * * *
(b) Tables of applicable percentage. The tables in paragraphs
(b)(1) through (b)(3) of this section contain the modified adjusted
gross income ranges for calendar years 2011 through and including 2017,
2018, and 2019, and the corresponding percentage of the cost of basic
Medicare prescription drug coverage that individuals with modified
adjusted gross incomes that fall within each of the ranges will pay.
The monthly dollar amounts will be determined by CMS using the formula
in section 1860D-13(a)(7)(B) of the Act. Based on your tax filing
status for the tax year we use to make a determination about your
income-related monthly adjustment amount, we will determine which table
is applicable to you. We will use your modified adjusted gross income
to determine which income-related monthly adjustment amount to apply to
you. The dollar amounts used for each of the ranges of income-related
monthly adjustment will be set annually after 2019 as described in
paragraph (c) of this section. The modified adjusted gross income
ranges will be adjusted annually after 2019 as described in Sec.
418.2115(e).
(1) General tables of applicable percentages. If your filing status
for your Federal income taxes for the tax year we use is single; head
of household; qualifying widow(er) with dependent child; or married
filing separately and you lived apart from your spouse for the entire
tax year, we will use the general tables of applicable percentages.
When your modified adjusted gross income for the year we use is in the
range listed in the left column in the following tables, you will pay
an amount based on the percentage listed in the right column, which
represents a percentage of the cost of basic Medicare prescription drug
coverage.
------------------------------------------------------------------------
Beneficiary
Table 1 to paragraph (b)(1): Modified adjusted gross percentage
income effective in 2011-2017 (percent)
------------------------------------------------------------------------
Greater than $85,000 but less than or equal to $107,000. 35
Greater than $107,000 but less than or equal to $160,000 50
Greater than $160,000 but less than or equal to $214,000 65
Greater than $214,000................................... 80
------------------------------------------------------------------------
------------------------------------------------------------------------
Beneficiary
Table 2 to paragraph (b)(1): Modified adjusted gross percentage
income effective in 2018 (percent)
------------------------------------------------------------------------
Greater than $85,000 but less than or equal to $107,000. 35
Greater than $107,000 but less than or equal to $133,500 50
Greater than $133,500 but less than or equal to $160,000 65
Greater than $160,000................................... 80
------------------------------------------------------------------------
------------------------------------------------------------------------
Beneficiary
Table 3 to paragraph (b)(1): Modified adjusted gross percentage
income effective beginning in 2019 (percent)
------------------------------------------------------------------------
Greater than $85,000 but less than or equal to $107,000. 35
Greater than $107,000 but less than or equal to $133,500 50
Greater than $133,500 but less than or equal to $160,000 65
Greater than $160,000 but less than $500,000............ 80
Greater than or equal to $500,000....................... 85
------------------------------------------------------------------------
(2) Tables of applicable percentages for joint returns. If your
Federal tax filing status is married filing jointly for the tax year we
use and your modified adjusted gross income for that tax year is in the
range listed in the left column in the following tables, you will pay
an amount based on the percentage listed in the right column, which
represents a percentage of the cost of basic Medicare prescription drug
coverage.
------------------------------------------------------------------------
Beneficiary
Table 1 to paragraph (b)(2): Modified adjusted gross percentage
income effective in 2011-2017 (percent)
------------------------------------------------------------------------
Greater than $170,000 but less than or equal to $214,000 35
Greater than $214,000 but less than or equal to $320,000 50
Greater than $320,000 but less than or equal to $428,000 65
Greater than $428,000................................... 80
------------------------------------------------------------------------
[[Page 55632]]
------------------------------------------------------------------------
Beneficiary
Table 2 to paragraph (b)(2): Modified adjusted gross percentage
income effective in 2018 (percent)
------------------------------------------------------------------------
Greater than $170,000 but less than or equal to $214,000 35
Greater than $214,000 but less than or equal to $267,000 50
Greater than $267,000 but less than or equal to $320,000 65
Greater than $320,000................................... 80
------------------------------------------------------------------------
------------------------------------------------------------------------
Beneficiary
Table 3 to paragraph (b)(2): Modified adjusted gross percentage
income effective beginning in 2019 (percent)
------------------------------------------------------------------------
Greater than $170,000 but less than or equal to $214,000 35
Greater than $214,000 but less than or equal to $267,000 50
Greater than $267,000 but less than or equal to $320,000 65
Greater than $320,000 but less than $750,000............ 80
Greater than or equal to $750,000....................... 85
------------------------------------------------------------------------
(3) Tables of applicable percentages for married individuals filing
separate returns. If, for the tax year we use, your Federal tax filing
status is married filing separately, you lived with your spouse at some
time during that tax year, and your modified adjusted gross income is
in the range listed in the left column in the following tables, you
will pay an amount based on the percentage listed in the right column,
which represents a percentage of the cost of basic Medicare
prescription drug coverage.
------------------------------------------------------------------------
Beneficiary
Table 1 to paragraph (b)(3): Modified adjusted gross percentage
income effective in 2011-2017 (percent)
------------------------------------------------------------------------
Greater than $85,000 but less than or equal to $129,000. 65
Greater than $129,000................................... 80
------------------------------------------------------------------------
------------------------------------------------------------------------
Beneficiary
Table 2 to paragraph (b)(3): Modified adjusted gross percentage
income effective in 2018 (percent)
------------------------------------------------------------------------
Greater than $85,000.................................... 80
------------------------------------------------------------------------
------------------------------------------------------------------------
Beneficiary
Table 3 to paragraph (b)(3): Modified adjusted gross percentage
income effective beginning in 2019 (percent)
------------------------------------------------------------------------
Greater than $85,000 but less than $415,000............. 80
Greater than or equal to $415,000....................... 85
------------------------------------------------------------------------
* * * * *
[FR Doc. 2018-24336 Filed 11-6-18; 8:45 am]
BILLING CODE 4191-02-P
