Covering the Bases: Part B premiums vary according to income

Q: In looking over my widowed aunt's financial records, I was surprised to find that she is paying a higher Medicare Part B premium than my wife and I. Should I check to see if this is an error?

A: Medicare premiums for Part B are now based on income reported on income tax returns. If your aunt's reported income is more than $82,000, she is paying a higher premium because the government is not subsidizing her premium as much as those whose income is less than that amount.

For those filing an individual tax return with incomes between $82,000 and less than $102,000, the monthly premium is $122.20. From $102,000 to less than $153,000, a person pays $160.90 per month. From $153,000 to less than $205,000, the premium is $199.70 per month, and with a reported income more than $205,000 annually, the monthly premium cost is $238.40.

It is also possible that your aunt is paying a penalty on her Part B premium each month due to having signed up for Medicare Part B later than normal. She can check with the Social Security Administration to find out why her premium is higher than the $96.40 that most individuals pay.

Q: We have recently come to the realization that my mother has short-term memory loss. Among the many issues we uncovered, we discovered that she didn't pay her Medicare Part D premium for six months, and the company that covered her has disenrolled her.

I contacted the plan and asked them to reinstate her, but they said they won't because they made a reasonable effort to contact her and then notified her in writing that they were going to discontinue her coverage. Is there anything I can do for her?

A: Unfortunately, the plan does have the right to disenroll your mother because it followed the regulations for those who are delinquent in paying their premiums. Your mother will have to wait until the next enrollment period for Medicare Part D plans, which is known as the Annual Coordinated Election Period, which runs between Nov. 15 and Dec. 31 of each year. She will be charged a penalty when she signs up at the end of this year and the effective date of her coverage will be Jan. 1, 2009.

Until then you should apply for the Department of Health's Prescription Discount Program. This is not an insurance policy, but it does provide discounts for prescriptions purchased from participating pharmacies, and there is no cost for applying for the card. Call Script Save at 800-700-3957 to apply. The group number for Anne Arundel County is 586. There is also a hearing and eye care benefit attached to this program, and anyone can apply.

Q: I am looking at Medigap plans as a new Medicare beneficiary. I think a high-deductible plan would be a good idea for me. The information I have is not current, so I don't know how much the deductible actually is. I am looking at a high-deductible Plan F.

A: The annual deductible amount for that plan is $1,900, which means that you would pay the first $1,900 of Medicare-covered expenses you incurred before your Medigap plan would pay anything.

The limited Foreign Travel Emergency coverage with Plan F carries a separate deductible of $250 per year, which you would have to meet before being reimbursed for any eligible expenses.

Susan Knight is a senior health insurance consultant. If you have questions about the information in this column, contact the county's Senior Health Insurance Program at the Department of Aging and Disabilities at 410-222-4464 or ship_program@aacounty.org.