[Federal Register Volume 79, Number 41 (Monday, March 3, 2014)]
[Rules and Regulations]
[Page 11706]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-04610]



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: Final rule.


SUMMARY: This final rule adopts, without change, the interim final rule 
with request for comments we published in the Federal Register on 
September 18, 2013. The interim final rule modified our rules regarding 
Medicare Part B income-related monthly adjustment amounts to conform to 
changes made to the Social Security Act (Act) and Internal Revenue Code 
by the Affordable Care Act. We also removed provisions that phased in 
income-related monthly adjustment amounts between 2007 and 2009 and 
updated a citation to reflect the transfer of authority for hearing 
appeals under title XVIII of the Act from the Social Security 
Administration to the Department of Health and Human Services.

DATES: The interim final rule with request for comments published on 
September 18, 2013, at 78 FR 57257, is confirmed as final, effective 
March 3, 2014.

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 

SUPPLEMENTARY INFORMATION: 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 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 income-related monthly 
adjustment amounts (IRMAA).

    \1\ MAGI is defined in 42 USC 1395r(i)(4). The threshold amount 
is defined in 42 USC 1395r(i)(2).

    CMS determines and publishes the annual MAGI threshold and ranges. 
The Internal Revenue Service 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. It also revised the Internal Revenue Code to allow us to 
disclose tax return information to the Department of Health and Human 
Services (HHS) to the extent necessary to resolve administrative 
appeals of IRMAA determinations. We have updated our regulations to 
reflect these changes. The regulations now freeze the MAGI threshold 
and ranges from 2011 through 2019 and no longer require that 
beneficiaries consent to our release of Internal Revenue Service 
information to HHS to allow HHS to adjudicate an appeal of a 
determination applying an IRMAA to the Part B premium subsidy. We also 
removed provisions that phased in IRMAA between 2007 and 2009 because 
they are no longer necessary and corrected an outdated citation to HHS 
regulations, which reflects the transfer of authority for hearing 
appeals under title XVIII of the Social Security Act from the Social 
Security Administration to HHS.

    \2\ Public Law 111-148.

Public Comments

    On September 18, 2013, we published an interim final rule with 
request for comments in the Federal Register, at 78 FR 57257. We 
provided a 60-day public comment period. We received no comments from 
the public. As a result, we are adopting the interim final rule as a 
final rule without change.

Regulatory Procedures

Executive Order 12866 as Supplemented by Executive Order 13563

    We consulted with the Office of Management and Budget and 
determined that this final rule does not meet the criteria for a 
significant regulatory action under Executive Order 12866, as 
supplemented by Executive Order 13563.

Regulatory Flexibility Act

    We certify that this final rule will not have a significant 
economic impact on a substantial number of small entities because it 
only affects individuals. Therefore, a regulatory flexibility analysis 
is not required under the Regulatory Flexibility Act, as amended.

Paperwork Reduction Act

    This final rule imposes no reporting or recordkeeping requirements 
subject to OMB clearance.

(Catalog of Federal Domestic Assistance Program Nos. 93.774 Medicare 
Supplementary Medical Insurance; 96.002 Social Security--Retirement 

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.

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: February 21, 2014.
Carolyn W. Colvin,
Acting Commissioner of Social Security.

    Accordingly, the interim final rule amending 20 CFR chapter III, 
part 404, subpart J and 20 CFR chapter III, part 418, subpart B that 
was published at 78 FR 57257 on September 18, 2013 is adopted as a 
final rule without change.

[FR Doc. 2014-04610 Filed 2-28-14; 8:45 am]