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Insurance Costs Increase in the New Year

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There is yet another expense to keep in mind while planning for your client’s retirement. The Medicare Modernization Act of 2003 mandates that beginning in 2007, an individual with modified AGI of more than $80,000 per year or a married couple exceeding $160,000 per year will pay a higher percentage of the Medicare Part B premium. Depending on their income level and tax filing status, beginning January 1, higher-income seniors will pay between $106.00 and $162.10 per month for the coverage. By the end of the three-year transition period mandated by the Act, which is designed to help keep Medicare solvent, the highest income beneficiaries will pay 80% of the total premium.