Stuart or anybody, I noticed in the PRC2024 manual that it states the Medicare Part D can be auto-calculated (along with B). Within the tool, the notes on the healthcare expense cells (still?) seem to indicate that Part D can be added manually even when Part B is auto-calculated, suggesting to me that the Part D premium is only added manually, while B and IRMAA for D (and B) is calc'd. Can this be clarified? Thx
@mullins343 You're right, the comment in the expense cell needs to be updated to state that you only need to enter the cost of supplemental insurance if you've told PRC to auto-calculate Medicare premiums. The auto-calculation includes Part B and D premiums according to current IRMAA brackets, with no surcharge for B/D for incomes below $206,000 Married or $103,000 Single.
Stuart
So, how is it determining a D premium (not the D IRMAA surcharge) given the D premium varies by individual plan (which is unlike B)? This is the piece of the D cost (made up of a premium and a surcharge) I have always believed required a manual entry since it varies, unlike the surcharge which can be calc'd, if exceeding the MAGI thresholds as you mention. Still puzzled? Thanks
@mullins343 PRC only calculates the Part D surcharge as shown on the attached screenshot from HelpAdvisor.com. Obviously, it cannot auto-calculate the portion of the premium that's unique to your Part D plan.
Stuart
Thanks Stuart. That's what I thought. Was lead astray by the 3rd paragraph on Page 99 of the manual, I think. Specifically, "Caution: If you check the auto-calculate box, be sure to exclude Basic Medicare Part B and Part D costs in the insurance premium fields." Thanks for the prompt clarification.
Craig
@Stuart Matthews Thank you so much for making yourself SO accessible to the users of your product. It makes so much difference!
As a military retiree, I pay Part B Medicare premiums for my wife and me, but prescription medicines for both of us are covered by "Tricare for Life," (TFL) which is akin to a Medicare supplemental. This coverage kicks in automatically for a military retiree when they enroll in Medicare. TFL covers prescription medications. I don't have a Medicare Part D plan, and I do not pay for separate drug coverage. I am having PRC calculate our Medicare coverages. Some of my scenarios have episodic IRMAA triggers. With my coverage, I should never have an IRMAA Part D surcharge, but I think the program is automatically calculating a Part D surcharge in the scenarios where IRMAA kicks in. Is there any way around that?
@yankeelaker You're welcome! I'm sorry but, no, there's no way around the IRMAA Part D surcharges at the present time. I'll add that to the enhancement list for the Pralana Online tool (due out this Spring, but this feature will not be included in the initial release). For now, though, if these charges are significant, maybe you could offset them with non-taxable entries in the Other Income section of the Income page.
@smatthews51 Is there a way to see a break-out of what part of a given year's IRMA surcharge is for Part D?
@yankeelaker No, not within the tool. You'd have to use IRMAA bracket tables to reverse-engineer it. It looks to me like the Part D surcharge is about 15% of the overall IRMAA charge.
Stuart
