[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]


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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.

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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 http://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\
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    \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.
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    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).
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    \3\ Public Law 114-10, section 402, 129 Stat. 87, 160.
    \4\ Public Law 115-123, section 53114.
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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