[Federal Register Volume 78, Number 181 (Wednesday, September 18, 2013)]
[Rules and Regulations]
[Pages 57257-57260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-22445]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Parts 404 and 418
[Docket No. SSA-2012-0011]
RIN 0960-AH47
Medicare Determinations and Income-Related Monthly Adjustment
Amounts to Medicare Part B Premiums; Conforming Changes to Regulations
AGENCY: Social Security Administration.
ACTION: Interim final rule with request for comments.
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SUMMARY: We are modifying our regulations regarding Medicare Part B
income-related monthly adjustment amounts (IRMAA) in order to conform
to changes made to the Social Security Act (Act) by the Affordable Care
Act. This rule freezes the modified adjusted gross income threshold and
ranges from 2011 through 2019 and removes the requirement that
beneficiaries consent to our release of Internal Revenue Service (IRS)
information to the U.S. Department of Health and Human Services (HHS)
for the purpose of adjudicating any appeal of an IRMAA to the Part B
premium subsidy. We are also removing provisions that phased in IRMAA
between 2007 and 2009 and updating a citation to reflect the transfer
of authority for hearing appeals under Title XVIII of the Act from the
Social Security Administration to HHS.
DATES: Effective Date: This interim final rule will be effective
September 18, 2013.
Comment Date: To ensure that your comments are considered, we must
receive them no later than November 18, 2013.
ADDRESSES: You may submit comments by any one of three methods--
Internet, fax, or mail. Do not submit the same comments multiple times
or by more than one method. Regardless of which method you choose,
please state that your comments refer to Docket No. SSA-2012-0011 so
that we may associate your comments with the correct regulation.
Caution: You should be careful to include in your comments only
information that you wish to make publicly available. We strongly urge
you not to include in your comments any personal information such as
Social Security numbers or medical information.
1. Internet: We strongly recommend that you submit your comments
via the Internet. Please visit the Federal eRulemaking portal at http://www.regulations.gov. Use the Search function to find docket number
SSA-2012-0011. The system will issue a tracking number to confirm your
submission. You will not be able to view your comment immediately
because we must post each comment manually. It may take up to a week
for your comment to be viewable.
2. Fax: Fax comments to (410) 966-2830.
3. Mail: Mail your comments to the Office of Regulations, Social
Security Administration, 107 Altmeyer Building, 6401 Security
Boulevard, Baltimore, Maryland 21235-6401.
Comments are available for public viewing on the Federal
eRulemaking portal at http://www.regulations.gov or in person, during
regular business hours, by arranging with the contact person identified
below.
FOR FURTHER INFORMATION CONTACT: Craig Streett, Office of Income
Security Programs, Social Security Administration, 2-R-24 Robert M.
Ball Federal Building, 6401 Security Boulevard, Baltimore, MD 21235-
6401, (410) 965-9793. 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:
Background
Medicare Part B is a voluntary medical insurance program that
provides coverage for services such as physician's care, diagnostic
services, and medical supplies. A beneficiary enrolled in Medicare Part
B pays monthly premiums, deductibles, and co-insurance associated with
covered services. The Centers for Medicare & Medicaid Services (CMS)
issues rules and regulations about the Medicare program, including the
standard monthly premium. We determine and
[[Page 57258]]
deduct the amount of certain Medicare Part B premiums from
beneficiaries' Social Security benefits and make rules and regulations
necessary to carry out these functions.
The Federal Government subsidizes the cost of Medicare Part B
coverage. However, beneficiaries with modified adjusted gross incomes
(MAGI) above a specified threshold must pay a higher percentage of the
average cost of coverage than those with MAGI below the threshold.\1\
We refer to this subsidy reduction as an IRMAA.
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\1\ MAGI is defined in 42 U.S.C. 1395r(i)(4). The threshold
amount is defined in 42 U.S.C. 1395r(i)(2).
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CMS determines and publishes the annual MAGI threshold and ranges.
The IRS provides us with beneficiaries' MAGI information for the
applicable tax year. We use this information to determine IRMAAs using
the CMS-determined annual MAGI threshold.
In March 2010, Congress passed the Affordable Care Act.\2\ The
Affordable Care Act temporarily freezes the MAGI threshold above which
beneficiaries must pay a higher percentage of the costs of their
coverage. As a result, we are updating our regulations to reflect this
change.
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\2\ Public Law 111-148.
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Section 3402 of the Affordable Care Act temporarily set aside the
annual inflation adjustment used to set the MAGI threshold and ranges
for purposes of determining IRMAAs. From January 1, 2011 through
December 31, 2019, the dollar amounts used for 2010 are the threshold
and ranges used to determine if an IRMAA will apply. During this
period, the threshold is $170,000 for beneficiaries who file their
Federal income taxes as married filing jointly and $85,000 for
beneficiaries who file their Federal income taxes with any other filing
status.\3\ After 2019, these thresholds will resume adjustment for
inflation as required by section 1839(i)(5) of the Act.
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\3\ 74 FR 54571, 54573 (2009).
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Regulatory Changes
We revised sections 418.1105, What is the threshold?, 418.1115,
What are the modified adjusted gross income ranges?, and 418.1120, How
do we determine your income-related monthly adjustment amount?, to
reflect the new threshold and ranges established by the Affordable Care
Act.
We removed section 418.1130 as well as language from sections
418.1001(b), 418.1101(c), 418.1125(b), and 418.1230(a) that described
how we phased in the IRMAA. When Congress created the IRMAA, it
provided for a gradual phase-in of the subsidy reduction. We completed
the phase-in in 2009. Therefore, section 418.1130 and the phase-in
language used in the revised sections are no longer necessary.
We deleted from section 418.1350 the requirement that an individual
provide consent for us to release relevant tax return information to
HHS' Office of Medicare Hearings and Appeals or Medicare Appeals
Council for the purposes of adjudicating any appeal of the amount of an
IRMAA to the Part B premium subsidy. The Affordable Care Act removed
this requirement by amending section 6103(l)(20) of the Internal
Revenue Code to provide that we may disclose return information to
officers and employees of the Department of HHS to the extent necessary
to resolve administrative appeals of premium subsidy adjustments or
increased premiums.\4\
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\4\ Public Law 111-148, sec. 3308(b)(2)(C)(iv).
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We also updated 20 CFR 404.900(a) to correct an outdated citation
to the HHS regulations. We replaced the reference to 42 CFR 405.701(c)
with 42 CFR 405.904(a)(1). 42 CFR 405.904(a)(1) provides that we make
initial determinations and reconsiderations of Medicare Part A and B
applications and entitlement, and HHS handles Medicare appeals
following a reconsideration.
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 good cause for dispensing with such procedures because
they are impracticable, unnecessary, or contrary to the public
interest, and the agency incorporates a statement of the finding and
its reasons in the rule issued.\5\
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\5\ 5 U.S.C. 553(b)(B).
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We find that good cause exists for proceeding without prior public
notice and comment with respect to the changes that freeze the MAGI
threshold and ranges at 2010 levels from January 1, 2011 until December
31, 2019 and that remove the requirement that individuals consent to
our release of relevant tax information to HHS for adjudication of
IRMAA appeals. These changes are nondiscretionary under the Affordable
Care Act. Accordingly, we find that prior public comment with respect
to these changes is unnecessary.
We also find that good cause exists for proceeding without prior
public notice and comment with respect to the changes that remove the
outdated phase-in procedures from our rules. The language we are
removing has no current effect and has not applied since we completed
the IRMAA phase-in in 2009. Therefore, we find prior comment with
respect to these changes is also unnecessary.
We also find that good cause exists for proceeding without prior
public notice and comment with respect to the change to 20 CFR
404.900(a) because it is a technical change that only updates a
citation to the HHS regulations. Therefore, we also find that prior
public comment with respect to this change is unnecessary.
Additionally, we find that good cause exists for dispensing with
the 30-day delay in the effective date of this rule. For the reasons we
stated above, we find that it is unnecessary to delay the effective
date of the changes we are making in this interim final rule.
Accordingly, we are making this interim final rule effective September
18, 2013.
Executive Order 12866
We consulted with the Office of Management and Budget (OMB) and
determined that this interim rule meets the criteria for a significant
regulatory action under Executive Order 12866. It was subject to OMB
review.
Regulatory Flexibility Act
We certify that this interim final rule will not have a significant
economic impact on a substantial number of small entities because it
affects individuals only. Therefore, a regulatory flexibility analysis
is not required under the Regulatory Flexibility Act, as amended.
Paperwork Reduction Act (PRA)
These rules do not impose any new public reporting burdens under
the PRA or affect any existing OMB-approved PRA collections.
(Catalog of Federal Domestic Assistance Program Nos. 93.774 Medicare
Supplementary Medical Insurance; 96.002 Social Security--Retirement
Insurance.)
List of Subjects
20 CFR Part 404
Administrative practice and procedure, Aged, Alimony, Blind,
Disability benefits, Government employees, Income taxes, Insurance,
Investigations, Old-age, Survivors and disability insurance, Penalties,
Railroad retirement, Reporting and recordkeeping requirements, Social
Security, Travel and transportation expenses, Treaties, Veterans,
Vocational rehabilitation.
[[Page 57259]]
20 CFR Part 418
Administrative practice and procedure, Aged, Blind, Disability
benefits, Public assistance programs, Reporting and recordkeeping
requirements, Supplemental Security Income (SSI), Medicare subsidies.
Dated: September 9, 2013.
Carolyn W. Colvin,
Acting Commissioner of Social Security.
For the reasons set out in the preamble, we amend 20 CFR chapter
III, part 404, subpart J and 20 CFR chapter III, part 418, subpart B as
set forth below:
PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE
(1950- )
Subpart J--Determinations, Administrative Review Process, and
Reopening of Determinations and Decisions
0
1. The authority citation for subpart J of part 404 continues to read
as follows:
Authority: Secs. 201(j), 204(f), 205(a)-(b), (d)-(h), and (j),
221, 223(i), 225, and 702(a)(5) of the Social Security Act (42
U.S.C. 401(j), 404(f), 405(a)-(b), (d)-(h), and (j), 421, 423(i),
425, and 902(a)(5)); sec. 5, Pub. L. 97-455, 96 Stat. 2500 (42
U.S.C. 405 note); secs. 5, 6(c)-(e), and 15, Pub. L. 98-460, 98
Stat. 1802 (42 U.S.C. 421 note); sec. 202, Pub. L. 108-203, 118
Stat. 509 (42 U.S.C. 902 note).
0
2. Amend Sec. 404.900 by removing ``42 CFR 405.701(c)'' from paragraph
(a) and adding in its place ``42 CFR 405.904(a)(1).''
PART 418--MEDICARE SUBSIDIES
Subpart B--Medicare Part B Income-Related Monthly Adjustment Amount
0
3. 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)).
Sec. 418.1001 [Amended]
0
4. Amend Sec. 418.1001 by removing the last sentence of paragraph (b).
0
5. Amend Sec. 418.1101 by revising paragraph (c) to read as follows:
Sec. 418.1101 What is the income-related monthly adjustment amount?
* * * * *
(c) We will determine your income-related monthly adjustment amount
using the method described in Sec. 418.1120.
0
6. Amend Sec. 418.1105 by revising paragraphs (b) and (c) to read as
follows:
Sec. 418.1105 What is the threshold?
* * * * *
(b) From January 1, 2011 through December 31, 2019, the modified
adjusted gross income threshold is $170,000 for individuals with a
Federal income tax filing status of married filing jointly. The
threshold is $85,000 for individuals with any other filing status.
(c) Starting on January 1, 2020, the threshold amounts will resume
adjustment for inflation as required by section 1839(i)(5) of the Act.
In each year thereafter, CMS will set all modified adjusted gross
income threshold amounts for the following year by increasing the
preceding year's threshold amounts by any percentage increase in the
Consumer Price Index rounded to the nearest $1,000. CMS will publish
the amounts in the Federal Register in September of each year.
Published threshold amounts will be effective January 1 of the next
calendar year, for the full calendar year.
0
7. Revise Sec. 418.1115 to 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 2019 for each Federal tax
filing category in paragraphs (b), (c) and (d) of this section. We will
use your modified adjusted gross income amount together with your tax
filing status to determine the amount of your income-related monthly
adjustment for these calendar years.
(b) For calendar years 2011 through and including 2019, 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) Greater than $85,000 and less than or equal to $107,000;
(2) Greater than $107,000 and less than or equal to $160,000;
(3) Greater than $160,000 and less than or equal to $214,000; and
(4) Greater than $214,000.
(c) For calendar years 2011 through and including 2019, 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) Greater than $170,000 and less than or equal to $214,000;
(2) Greater than $214,000 and less than or equal to $320,000;
(3) Greater than $320,000 and less than or equal to $428,000; and
(4) Greater than $428,000.
(d) For calendar years 2011 through and including 2019, 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) Greater than $85,000 and less than or equal to $129,000; and
(2) Greater than $129,000.
(e) In 2019, CMS will set all modified adjusted gross income ranges
for 2020 and publish them in the Federal Register. In each year
thereafter, CMS will set all 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.
0
8. Revise Sec. 418.1120 to read as follows:
Sec. 418.1120 How do we determine your income-related monthly
adjustment amount?
(a) We will determine your income-related monthly adjustment amount
by using your tax filing status and modified adjusted gross income.
(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 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).
[[Page 57260]]
(1) General table 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 apart from your
spouse for the entire tax year, we will use the general table 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 table, 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 Federal premium
Modified adjusted gross income percentage subsidy
effective in 2011-2019 (percent) (percent)
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More than $85,000 but less than or 35 65
equal to $107,000..................
More than $107,000 but less than or 50 50
equal to $160,000..................
More than $160,000 but less than or 65 35
equal to $214,000..................
More than $214,000.................. 80 20
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(2) Table 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 table, 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 Federal premium
Modified adjusted gross income percentage subsidy
effective in 2011-2019 (percent) (percent)
------------------------------------------------------------------------
More than $170,000 but less than or 35 65
equal to $214,000..................
More than $214,000 but less than or 50 50
equal to $320,000..................
More than $320,000 but less than or 65 35
equal to $428,000..................
More than $428,000.................. 80 20
------------------------------------------------------------------------
(3) Table 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 table, 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 Federal premium
Modified adjusted gross income percentage subsidy
effective in 2011-2019 (percent) (percent)
------------------------------------------------------------------------
More than $85,000 but less than or 65 35
equal to $129,000..................
More than $129,000.................. 80 20
------------------------------------------------------------------------
(c) For each year after 2019, CMS will annually publish in the
Federal Register the dollar amounts for the income-related monthly
adjustment amount described in paragraph (b) of this section.
Sec. 418.1125 [Amended]
0
9. Amend Sec. 418.1125 by removing paragraph (b) and redesignating
paragraph (c) as paragraph (b).
Sec. 418.1130 [Removed and reserved]
0
10. Remove and reserve Sec. 418.1130.
0
11. Amend Sec. 418.1230 to remove paragraph (a), redesignate
paragraphs (b) through (d) as paragraphs (a) through (c), and revise
new paragraph (a) to read as follows:
Sec. 418.1230 What is the effective date of an income-related monthly
adjustment amount initial determination that is based on a more recent
tax year?
(a) Subject to paragraph (b) of this section, when your modified
adjusted gross income for the more recent tax year is significantly
reduced as a result of a major life-changing event, our initial
determination is generally effective on January 1 of the year in which
you make your request. If your first month of enrollment or
reenrollment in Medicare Part B is after January of the year for which
you make your request, our initial determination is effective on the
first day of your Medicare Part B enrollment or reenrollment.
* * * * *
0
12. Revise Sec. 418.1350 to read as follows:
Sec. 418.1350 What are the rules for review of a reconsidered
determination or an administrative law judge decision?
You may request a hearing before an OMHA administrative law judge
consistent with HHS' regulations at 42 CFR part 405. You may seek
further review of the administrative law judge's decision by requesting
MAC review and judicial review in accordance with HHS' regulations.
[FR Doc. 2013-22445 Filed 9-17-13; 8:45 a.m.]
BILLING CODE 4191-02-P