83_FR_55842 83 FR 55626 - Income-Related Monthly Adjustment Amounts for Medicare Part B and Prescription Drug Coverage Premiums

83 FR 55626 - Income-Related Monthly Adjustment Amounts for Medicare Part B and Prescription Drug Coverage Premiums

SOCIAL SECURITY ADMINISTRATION

Federal Register Volume 83, Issue 216 (November 7, 2018)

Page Range55626-55632
FR Document2018-24336

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.

Federal Register, Volume 83 Issue 216 (Wednesday, November 7, 2018) 
[Federal Register Volume 83, Number 216 (Wednesday, November 7, 2018)]
[Rules and Regulations]
[Pages 55626-55632]
From the Federal Register Online  [www.thefederalregister.org]
[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.

-----------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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).
---------------------------------------------------------------------------

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

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

55626 Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations BILLING CODE 4910–13–C Issued in Burlington, MA, on November The Bipartisan Budget Act of 2018 (BBA (h) Alternative Methods of Compliance 01, 2018. 2018) revised the MAGI ranges again for (AMOCs) Robert J. Ganley, years beginning with 2019. We consider (1) The Manager, ECO Branch, FAA, has Manager, Engine and Propeller Standards a beneficiary’s MAGI and tax filing the authority to approve AMOCs for this AD, Branch, Aircraft Certification Service. status to determine: The percentage of if requested using the procedures found in 14 [FR Doc. 2018–24250 Filed 11–6–18; 8:45 am] the unsubsidized Medicare Part B CFR 39.19. In accordance with 14 CFR 39.19, BILLING CODE 4910–13–P premium that the beneficiary must pay; send your request to your principal inspector and the percentage of the cost of basic or local Flight Standards District Office, as Medicare prescription drug coverage the appropriate. If sending information directly SOCIAL SECURITY ADMINISTRATION beneficiary must pay. This final rule to the manager of the certification office, send it to the attention of the person makes our regulations consistent with 20 CFR Part 418 the MAGI ranges specified by MACRA identified in paragraph (i) of this AD. You may email your request to: ANE-AD-AMOC@ [Docket No. SSA–2018–0041] and BBA 2018. faa.gov. DATES: This rule is effective November RIN 0960–AI37 (2) Before using any approved AMOC, 7, 2018. notify your appropriate principal inspector, Income-Related Monthly Adjustment or lacking a principal inspector, the manager FOR FURTHER INFORMATION CONTACT: Amounts for Medicare Part B and of the local flight standards district office/ Donald Murphy, Office of Income Prescription Drug Coverage Premiums certificate holding district office. Security Programs, Social Security (i) Related Information AGENCY: Social Security Administration. Administration, 6401 Security For more information about this AD, ACTION: Final rule. Boulevard, Baltimore, MD 21235–6401, contact Kevin M. Clark, Aerospace Engineer, (410) 965–9090. For information on SUMMARY: The Medicare Access and amozie on DSK3GDR082PROD with RULES ECO Branch, FAA, 1200 District Avenue, eligibility or filing for benefits, call our Burlington, MA, 01803; phone: 781–238– CHIP Reauthorization Act of 2015 national toll-free number, 1–800–772– 7088; fax: 781–238–7199; email: (MACRA) changed the modified 1213, or TTY 1–800–325–0778, or visit kevin.m.clark@faa.gov. adjusted gross income (MAGI) ranges our internet site, Social Security Online, associated with Medicare Part B and (j) Material Incorporated by Reference at http://www.socialsecurity.gov. Medicare prescription drug coverage ER07NO18.005</GPH> None. premiums for years beginning in 2018. SUPPLEMENTARY INFORMATION: VerDate Sep<11>2014 16:15 Nov 06, 2018 Jkt 247001 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 E:\FR\FM\07NOR1.SGM 07NOR1

Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations 55627 Background Explanation of Changes MAGI ranges need to be in place by For Medicare Part B, the income- The changes detailed below make our calendar year 2019. We find that it is related monthly adjustment amount regulations consistent with the updates unnecessary to delay the effective date (IRMAA) is the amount that a specified by MACRA and BBA 2018. of the final rule because the rule merely beneficiary must pay in addition to the In § 418.1115 and § 418.2115, we reflects the changes to the law that Medicare Part B standard monthly updated the lists of MAGI ranges for Congress has already made. In addition, premium when the beneficiary’s MAGI beneficiaries of all tax filing statuses for we find that it is in the public interest is above a specified threshold.1 For 2018 and for years beginning in 2019. to make this final rule effective on the Medicare prescription drug coverage, In § 418.1120 and § 418.2120, we date of publication in order to ensure IRMAA is an amount that a beneficiary added tables to show the figures that are that our rules accurately reflect the will pay in addition to the Medicare applicable for 2018 and for years statute when the MAGI ranges for 2019 prescription drug coverage plan beginning in 2019. The tables in become effective. monthly premium when the § 418.1120 show the updated MAGI Executive Order (E.O.) 12866, as beneficiary’s MAGI is above the ranges, and within each range, the Supplemented by E.O. 13563 specified threshold.2 percentage of the unsubsidized To determine a beneficiary’s IRMAA, Medicare Part B premium that will be We consulted with the Office of we consider the beneficiary’s MAGI, paid by beneficiaries and the percentage Management and Budget (OMB) and together with tax filing status, to of the Medicare Part B premium that determined that this final rule does not determine: (1) The percentage of the will be subsidized by contributions from meet the criteria for a significant unsubsidized Medicare Part B premium the Federal Government. The tables in regulatory action under E.O. 12866, as the beneficiary must pay; and (2) the § 418.2120 show the updated MAGI supplemented by E.O. 13563. Thus, percentage of the cost of basic Medicare ranges, and within each range, the OMB did not review the final rule. prescription drug coverage that the percentage of the cost of basic Medicare We also determined that this final beneficiary must pay. prescription drug coverage that rule meets the plain language In our regulations, we use lists and beneficiaries will pay. requirement of E.O. 12866. tables to show the MAGI ranges we use We also made minor conforming to determine IRMAA for specific years. changes in these sections. E.O. 13132 (Federalism) The lists associated with both Medicare Regulatory Procedures We analyzed this rule in accordance Part B and Medicare prescription drug with the principles and criteria coverage specify the MAGI ranges. The We follow the Administrative established by Executive Order 13132, tables associated with Medicare Part B Procedure Act (APA) rulemaking and determined that the rule will not show, within each MAGI range, the procedures specified in 5 U.S.C. 553 have sufficient Federalism implications percentage of the unsubsidized when we develop regulations. to warrant the preparation of a Medicare Part B premium that Generally, the APA requires that an Federalism assessment. We also beneficiaries must pay and the agency provide prior notice and determined that this rule will not percentage that will be subsidized by opportunity for public comment before preempt any State law or State contributions from the Federal issuing a final rule. The APA provides regulation or affect the States’ abilities Government. The tables associated with exceptions to its notice and public to discharge traditional State prescription drug coverage show, within comment procedures when an agency governmental functions. each MAGI range, the percentage of the finds there is good cause for dispensing cost of basic Medicare prescription drug with such procedures because they are Regulatory Flexibility Act coverage the beneficiaries must pay. impracticable, unnecessary, or contrary MACRA 3 changed the MAGI ranges to the public interest. We certify that these rules will not associated with Medicare Part B and We find that there is good cause have a significant economic impact on prescription drug coverage premiums under 5 U.S.C. 553(b)(B) to issue this a substantial number of small entities for years beginning in 2018. BBA 2018 4 regulatory change as a final rule without because they affect individuals only. changed the MAGI ranges associated prior public comment. We find that Therefore, a regulatory flexibility with Medicare Part B and prescription prior public comment is unnecessary analysis is not required under the drug coverage premiums for years because this final rule merely makes our Regulatory Flexibility Act, as amended. beginning in 2019. Based on these regulations (20 CFR 418.1115, 418.1120, E.O. 13771 changes, we revised the lists and tables 418.2115, and 418.2120) consistent with to show the updated MAGI ranges and the MAGI ranges specified by MACRA This regulation does not impose novel associated figures for 2018 and for years and BBA 2018. BBA 2018 indicated that costs on the public and as such is beginning in 2019. In each case, the the new amounts for 2019 must be in considered an exempt regulatory action MAGI ranges are subject to an inflation place by calendar year 2019. under E.O. 13771. adjustment for calendar years beginning Importantly, we have no agency Paperwork Reduction Act in 2020, as we explain in sections discretion for establishing these figures. 418.1105(c), 418.1115(e), 418.2105(c), Accordingly, we find there is good This rule does not create any new or and 418.2115(e). cause to issue this final rule without affect any existing collections and, prior public comment. therefore, does not require Office of 1 Medicare Part B standard monthly premiums In addition, we find that there is good Management and Budget approval cause for dispensing with the 30-day under the Paperwork Reduction Act. amozie on DSK3GDR082PROD with RULES may also be increased for late enrollment and for reenrollment. See 42 CFR 408.22 for an explanation. delay in the effective date of a 2 Medicare prescription drug coverage premiums (Catalog of Federal Domestic Assistance substantive rule provided by 5 U.S.C. Program Nos. 96.001, Social Security— may also be increased for the reasons found in 42 CFR 423.286. 553(d)(3). As we explained above, these Disability Insurance; 96.002, Social 3 Public Law 114–10, section 402, 129 Stat. 87, final rules merely make our regulations Security—Retirement Insurance; 96.004, 160. consistent with the MAGI ranges Social Security—Survivors Insurance; and 4 Public Law 115–123, section 53114. specified by Congress in the law. Those 96.006, Supplemental Security Income). VerDate Sep<11>2014 16:15 Nov 06, 2018 Jkt 247001 PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 E:\FR\FM\07NOR1.SGM 07NOR1

55628 Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations List of Subjects in 20 CFR Part 418 (2) For calendar year 2018— (i) Greater than $85,000 but less than Administrative practice and (i) Greater than $85,000 but less than $415,000; and or equal to $107,000; (ii) Greater than or equal to $415,000. procedure, Aged, Blind, Disability (e)(1) Subject to paragraph (e)(2) of (ii) Greater than $107,000 but less benefits, Medicare, Reporting and this section, in 2019, CMS will set the than or equal to $133,500; recordkeeping requirements. modified adjusted gross income ranges (iii) Greater than $133,500 but less Nancy A. Berryhill, than or equal to $160,000; and for 2020 and publish them in the Acting Commissioner of Social Security. (iv) Greater than $160,000 Federal Register. In each year thereafter, (3) For calendar years beginning with CMS will set the modified adjusted For the reasons set forth in the 2019— gross income ranges by increasing the preamble, we amend subpart B and (i) Greater than $85,000 but less than preceding year’s ranges by any subpart C of part 418 of title 20 of the or equal to $107,000; percentage increase in the Consumer Code of Federal Regulations as set forth (ii) Greater than $107,000 but less Price Index rounded to the nearest below: than or equal to $133,500; $1,000 and will publish the amounts for PART 418—MEDICARE SUBSIDIES (iii) Greater than $133,500 but less the following year in September of each than or equal to $160,000; year. Subpart B—Medicare Part B Income- (iv) Greater than $160,000 but less (2) The amounts listed in paragraphs Related Monthly Adjustment Amount than $500,000; and (b), (c), and (d) of $415,000, $500,000, (v) Greater than or equal to $500,000. and $750,000 will not be adjusted under ■ 1. The authority citation for subpart B (c) The modified adjusted gross paragraph (e)(1) of this section until of part 418 continues to read as follows: income ranges for individuals who are 2028. Beginning in 2027, and in each Authority: Secs. 702(a)(5) and 1839(i) of married and filed a joint tax return for year thereafter, CMS will adjust these the Social Security Act (42 U.S.C. 902(a)(5) the tax year we use to make the income- range amounts for the following year and 1395r(i)). related monthly adjustment amount under paragraph (e)(1) of this section determination are as follows. and publish the updated ranges in the ■ 2. Amend § 418.1001 by revising the (1) For calendar years 2011 through Federal Register. first sentence of the introductory text to and including 2017— ■ 4. Amend § 418.1120 by revising read as follows: (i) Greater than $170,000 but less than paragraph (b) to read as follows: § 418.1001 What is this subpart about? or equal to $214,000; (ii) Greater than $214,000 but less § 418.1120 How do we determine your This subpart relates to section 1839(i) income-related monthly adjustment than or equal to $320,000; of the Social Security Act (the Act), as amount? (iii) Greater than $320,000 but less amended. * * * * * * * * than or equal to $428,000; and * * * * * (iv) Greater than $428,000. (b) Tables of applicable percentage. ■ 3. Amend § 418.1115 by: (2) For calendar year 2018— The tables in paragraphs (b)(1) through ■ a. Revising the first sentence of (i) Greater than $170,000 but less than (b)(3) of this section contain the paragraph (a); and or equal to $214,000; modified adjusted gross income ranges ■ b. Revising paragraphs (b), (c), (d), and (ii) Greater than $214,000 but less for calendar years 2011 through and (e). than or equal to $267,000; including 2017, 2018, and beginning in The revisions read as follows: (iii) Greater than $267,000 but less 2019 in the column on the left in each than or equal to $320,000; and table. The middle column in each table § 418.1115 What are the modified adjusted (iv) Greater than $320,000. shows the percentage of the gross income ranges? unsubsidized Medicare Part B premium (3) For calendar years beginning in (a) We list the modified adjusted gross 2019— that will be paid by individuals with income ranges for the calendar years (i) Greater than $170,000 but less than modified adjusted gross income that 2011 through and including 2017, 2018, or equal to $214,000; falls within each of the ranges. The and for years beginning in 2019 for each (ii) Greater than $214,000 but less column on the right in each table shows Federal tax filing category in paragraphs than or equal to $267,000; the percentage of the Medicare Part B (b), (c) and (d) of this section. * * * (iii) Greater than $267,000 but less premium that will be subsidized by (b) The modified adjusted gross than or equal to $320,000; contributions from the Federal income ranges for individuals with a (iv) Greater than $320,000 but less Government. We use your tax filing Federal tax filing status of single, head than $750,000; and status and your modified adjusted gross of household, qualifying widow(er) with (v) Greater than or equal to $750,000. income for the tax year to determine dependent child, and married filing (d) The modified adjusted gross which income-related monthly separately when the individual has income ranges for married individuals adjustment amount to apply to you. The lived apart from his/her spouse for the who file a separate return and have dollar amount of income-related entire tax year for the year we use to lived with their spouse at any time monthly adjustment for each range will make our income-related monthly during the tax year we use to make the be set annually for each year after 2019 adjustment amount determination are as income-related monthly adjustment as described in paragraph (c) of this follows. amount determination are as follows. section. The modified adjusted gross (1) For calendar years 2011 through (1) For calendar years 2011 through income ranges will be adjusted annually and including 2017— and including 2017— after 2019 as described in § 418.1115(e). (i) Greater than $85,000 but less than (i) Greater than $85,000 but less than (1) General tables of applicable amozie on DSK3GDR082PROD with RULES or equal to $107,000; or equal to $129,000; and percentages. If, for the tax year, we use (ii) Greater than $107,000 but less (ii) Greater than $129,000. your filing status for your Federal than or equal to $160,000; (2) For calendar year 2018—Greater income taxes for the tax year is single; (iii) Greater than $160,000 but less than $85,000. head of household; qualifying than or equal to $214,000; and (3) For calendar years beginning in widow(er) with dependent child; or (iv) Greater than $214,000. 2019— married filing separately and you lived VerDate Sep<11>2014 16:15 Nov 06, 2018 Jkt 247001 PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 E:\FR\FM\07NOR1.SGM 07NOR1

Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations 55629 apart from your spouse for the entire tax year we use is in the range listed in the reduced to the percentage listed in the year, we will use the general tables of left column in the following tables, then right column. You will pay an amount applicable percentages. When your the Federal Government’s Part B based on the percentage listed in the modified adjusted gross income for the premium subsidy of 75 percent is center column. Federal Beneficiary premium Table 1 to paragraph (b)(1): Modified adjusted gross income effective in 2011–2017 percentage subsidy (percent) (percent) Greater than $85,000 but less than or equal to $107,000 ...................................................................................... 35 65 Greater than $107,000 but less than or equal to $160,000 .................................................................................... 50 50 Greater than $160,000 but less than or equal to $214,000 .................................................................................... 65 35 Greater than $214,000 ............................................................................................................................................ 80 20 Federal Beneficiary premium Table 2 to paragraph (b)(1): Modified adjusted gross income effective in 2018 percentage subsidy (percent) (percent) Greater than $85,000 but less than or equal to $107,000 ...................................................................................... 35 65 Greater than $107,000 but less than or equal to $133,500 .................................................................................... 50 50 Greater than $133,500 less than or equal to $160,000 .......................................................................................... 65 35 Greater than $160,000 ............................................................................................................................................ 80 20 Federal Beneficiary premium Table 3 to paragraph (b)(1): Modified adjusted gross income effective beginning in 2019 percentage subsidy (percent) (percent) Greater than $85,000 but less than or equal to $107,000 ...................................................................................... 35 65 Greater than $107,000 but less than or equal to $133,500 .................................................................................... 50 50 Greater than $133,500 but less than or equal to $160,000 .................................................................................... 65 35 Greater than $160,000 but less than $500,000 ...................................................................................................... 80 20 Greater than or equal to $500,000 .......................................................................................................................... 85 15 (2) Tables of applicable percentages income for that tax year is in the range right column. You will pay an amount for joint returns. If, for the tax year, we listed in the left column in the following based on the percentage listed in the use your Federal tax filing status is tables, then the Federal Government’s center column. married filing jointly for the tax year Part B premium subsidy of 75 percent and your modified adjusted gross is reduced to the percentage listed in the Federal Beneficiary premium Table 1 to paragraph (b)(2): Modified adjusted gross income effective in 2011–2017 percentage subsidy (percent) (percent) Greater than $170,000 but less than or equal to $214,000 .................................................................................... 35 65 Greater than $214,000 but less than or equal to $320,000 .................................................................................... 50 50 Greater than $320,000 but less than or equal to $428,000 .................................................................................... 65 35 Greater than $428,000 ............................................................................................................................................ 80 20 Federal Beneficiary premium Table 2 to paragraph (b)(2): Modified adjusted gross income effective in 2018 percentage subsidy (percent) (percent) Greater than $170,000 but less than or equal to $214,000 .................................................................................... 35 65 Greater than $214,000 but less than or equal to $267,000 .................................................................................... 50 50 Greater than $267,000 but less than or equal to $320,000 .................................................................................... 65 35 Greater than $320,000 ............................................................................................................................................ 80 20 Federal Beneficiary premium Table 3 to paragraph (b)(2): Modified adjusted gross income effective beginning in 2019 percentage subsidy (percent) (percent) amozie on DSK3GDR082PROD with RULES Greater than $170,000 but less than or equal to $214,000 .................................................................................... 35 65 Greater than $214,000 but less than or equal to $267,000 .................................................................................... 50 50 Greater than $267,000 but less than or equal to $320,000 .................................................................................... 65 35 Greater than $320,000 but less than $750,000 ...................................................................................................... 80 20 Greater than or equal to $750,000 .......................................................................................................................... 85 15 VerDate Sep<11>2014 16:15 Nov 06, 2018 Jkt 247001 PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 E:\FR\FM\07NOR1.SGM 07NOR1

55630 Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations (3) Tables of applicable percentages at some time during that tax year, and of 75 percent is reduced to the for married individuals filing separate your modified adjusted gross income is percentage listed in the right column. returns. If, for the tax year, we use your in the range listed in the left column in You will pay an amount based on the Federal tax filing status is married filing the following tables, then the Federal percentage listed in the center column. separately, you lived with your spouse Government’s Part B premium subsidy Federal Beneficiary premium Table 1 to paragraph (b)(3): Modified adjusted gross income effective in 2011–2017 percentage subsidy (percent) (percent) Greater than $85,000 but less than or equal to $129,000 ...................................................................................... 65 35 Greater than $129,000 ............................................................................................................................................ 80 20 Federal Beneficiary premium Table 2 to paragraph (b)(3): Modified adjusted gross income effective in 2018 percentage subsidy (percent) (percent) Greater than $85,000 .............................................................................................................................................. 80 20 Federal Beneficiary premium Table 3 to paragraph (b)(3): Modified adjusted gross income effective beginning in 2019 percentage subsidy (percent) (percent) Greater than $85,000 but less than $415,000 ........................................................................................................ 80 20 Greater than or equal to $415,000 .......................................................................................................................... 85 15 * * * * * (ii) Greater than $107,000 but less (i) Greater than $170,000 but less than than or equal to $160,000; or equal to $214,000; Subpart C—Income-Related Monthly (iii) Greater than $160,000 but less (ii) Greater than $214,000 but less Adjustments to Medicare Prescription than or equal to $214,000; and than or equal to $267,000; Drug Coverage Premiums (iv) Greater than $214,000. (iii) Greater than $267,000 but less (2) For calendar year 2018— than or equal to $320,000; and ■ 5. The authority citation for subpart C (i) Greater than $85,000 but less than (iv) Greater than $320,000. of part 418 continues to read as follows: $107,000; (3) For calendar years beginning in Authority: Secs. 702(a)(5), 1860D–13(a) (ii) Greater than $107,000 but less 2019— and (c) of the Social Security Act (42 U.S.C. than $133,500; (i) Greater than $170,000 but less than 902(a)(5), 1395w–113(a) and (c)). (iii) Greater than $133,500 but less or equal to $214,000; ■ 6. Amend § 418.2115 by: than $160,000; and (ii) Greater than $214,000 but less ■ a. Revising the first sentence in (iv) Greater than $160,000. than or equal to $267,000; paragraph (a); and (3) For calendar years beginning in (iii) Greater than $267,000 but less ■ b. Revising paragraphs (b), (c), (d), and 2019— than or equal to $320,000; (e). (i) Greater than $85,000 but less than (iv) Greater than $320,000 but less The revisions read as follows: or equal to $107,000; than $750,000; and § 418.2115 What are the modified adjusted (ii) Greater than $107,000 but less (v) Greater than or equal to $750,000. gross income ranges? than or equal to $133,500; (d) The modified adjusted gross (a) We list the modified adjusted gross (iii) Greater than $133,500 but less income ranges for married individuals income ranges for the calendar years than or equal to $160,000; who file a separate return and have 2011 through and including 2017, 2018, (iv) Greater than $160,000 but less lived with their spouse at any time and beginning in 2019 for each Federal than $500,000; and during the tax year we use to make the tax filing category in paragraphs (b), (c) (v) Greater than or equal to $500,000. income-related monthly adjustment and (d) of this section. * * * (c) The modified adjusted gross amount determination are as follows: (b) The modified adjusted gross income ranges for individuals who are (1) For calendar years 2011 through income ranges for individuals with a married and filed a joint tax return for and including 2017— Federal tax filing status of single, head the tax year we use to make the income- (i) Greater than $85,000 but less than of household, qualifying widow(er) with related monthly adjustment amount or equal to $129,000; and dependent child, and married filing determination are as follows. (ii) Greater than $129,000. separately when the individual has (1) For calendar years 2011 through (2) For calendar year 2018—Greater lived apart from his/her spouse for the 2017— than $85,000. entire tax year for the year we use to (i) Greater than $170,000 but less than (3) For calendar years beginning in make our income-related monthly or equal to $214,000; 2019— amozie on DSK3GDR082PROD with RULES adjustment amount determination are as (ii) Greater than $214,000 but less (i) Greater than $85,000 but less than follows: than or equal to $320,000; $415,000; and (1) For calendar years 2011 through (iii) Greater than $320,000 but less (ii) Greater than or equal to $415,000. and including 2017— than or equal to $428,000; and (e)(1) Subject to paragraph (e)(2) of (i) Greater than $85,000 but less than (iv) Greater than $428,000. this section, in 2019, CMS will set the or equal to $107,000; (2) For calendar year 2018— modified adjusted gross income ranges VerDate Sep<11>2014 16:15 Nov 06, 2018 Jkt 247001 PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 E:\FR\FM\07NOR1.SGM 07NOR1

Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations 55631 for 2020 and publish them in the § 418.2120 How do we determine your apply to you. The dollar amounts used Federal Register. In each year thereafter, income-related monthly adjustment for each of the ranges of income-related amount? monthly adjustment will be set annually CMS will set the modified adjusted gross income ranges by increasing the * * * * * after 2019 as described in paragraph (c) preceding year’s ranges by any (b) Tables of applicable percentage. of this section. The modified adjusted percentage increase in the Consumer The tables in paragraphs (b)(1) through gross income ranges will be adjusted (b)(3) of this section contain the annually after 2019 as described in Price Index rounded to the nearest modified adjusted gross income ranges § 418.2115(e). $1,000 and will publish the amounts for for calendar years 2011 through and the following year in September of each including 2017, 2018, and 2019, and the (1) General tables of applicable year. corresponding percentage of the cost of percentages. If your filing status for your (2) The amounts listed in paragraphs basic Medicare prescription drug Federal income taxes for the tax year we (b), (c), and (d) of $415,000, $500,000, coverage that individuals with modified use is single; head of household; and $750,000 will not be adjusted under adjusted gross incomes that fall within qualifying widow(er) with dependent paragraph (e)(1) of this section until each of the ranges will pay. The child; or married filing separately and 2028. Beginning in 2027, and in each monthly dollar amounts will be you lived apart from your spouse for the year thereafter, CMS will adjust these determined by CMS using the formula entire tax year, we will use the general range amounts for the following year in section 1860D–13(a)(7)(B) of the Act. tables of applicable percentages. When under paragraph (e)(1) of this section Based on your tax filing status for the your modified adjusted gross income for and publish the updated ranges in the tax year we use to make a determination the year we use is in the range listed in about your income-related monthly the left column in the following tables, Federal Register. adjustment amount, we will determine you will pay an amount based on the ■ 7. Amend § 418.2120 by revising which table is applicable to you. We percentage listed in the right column, paragraph (b) to read as follows: will use your modified adjusted gross which represents a percentage of the income to determine which income- cost of basic Medicare prescription drug related monthly adjustment amount to coverage. Beneficiary Table 1 to paragraph (b)(1): Modified adjusted gross income effective in 2011–2017 percentage (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 income effective in 2018 percentage (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 income effective beginning in 2019 percentage (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 adjusted gross income for that tax year in the right column, which represents a for joint returns. If your Federal tax is in the range listed in the left column percentage of the cost of basic Medicare filing status is married filing jointly for in the following tables, you will pay an prescription drug coverage. the tax year we use and your modified amount based on the percentage listed Beneficiary Table 1 to paragraph (b)(2): Modified adjusted gross income effective in 2011–2017 percentage (percent) amozie on DSK3GDR082PROD with RULES 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 VerDate Sep<11>2014 16:15 Nov 06, 2018 Jkt 247001 PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 E:\FR\FM\07NOR1.SGM 07NOR1

55632 Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Rules and Regulations Beneficiary Table 2 to paragraph (b)(2): Modified adjusted gross income effective in 2018 percentage (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 income effective beginning in 2019 percentage (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 at some time during that tax year, and in the right column, which represents a for married individuals filing separate your modified adjusted gross income is percentage of the cost of basic Medicare returns. If, for the tax year we use, your in the range listed in the left column in prescription drug coverage. Federal tax filing status is married filing the following tables, you will pay an separately, you lived with your spouse amount based on the percentage listed Beneficiary Table 1 to paragraph (b)(3): Modified adjusted gross income effective in 2011–2017 percentage (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 income effective in 2018 percentage (percent) Greater than $85,000 .......................................................................................................................................................................... 80 Beneficiary Table 3 to paragraph (b)(3): Modified adjusted gross income effective beginning in 2019 percentage (percent) Greater than $85,000 but less than $415,000 .................................................................................................................................... 80 Greater than or equal to $415,000 ...................................................................................................................................................... 85 * * * * * preparer penalty. The final regulations reviewed and approved under control [FR Doc. 2018–24336 Filed 11–6–18; 8:45 am] are necessary to implement recent law number 1545–1570. Control number BILLING CODE 4191–02–P changes that expand the scope of the tax 1545–1570 was discontinued in 2014, as return preparer due diligence penalty so the burden for the collection of that it applies to the child tax credit information contained in § 1.6695–2 is DEPARTMENT OF THE TREASURY (CTC)/additional child tax credit reflected in the burden for Form 8867, (ACTC), and the American opportunity ‘‘Paid Preparer’s Due Diligence Internal Revenue Service tax credit (AOTC) as well as to Checklist,’’ under control number 1545– eligibility to file a return or claim for 1629. 26 CFR Part 1 refund as head of household. The SUPPLEMENTARY INFORMATION: regulations affect tax return preparers. [TD 9842] Background DATES: RIN 1545–BO63 Effective date: These regulations are This document contains amendments effective November 7, 2018. to the Income Tax Regulations (26 CFR Tax Return Preparer Due Diligence Applicability date: For the part 1) under section 6695(g) of the Penalty Under Section 6695(g) applicability date, see § 1.6695–2(e). Internal Revenue Code (Code) regarding AGENCY: Internal Revenue Service (IRS), FOR FURTHER INFORMATION CONTACT: the tax return preparer due diligence amozie on DSK3GDR082PROD with RULES Treasury. Marshall French, 202–317–6845 (not a requirements. ACTION: Final regulation and removal of toll-free number). Prior to 2016, section 6695(g) imposed temporary regulation. a penalty on tax return preparers who Paperwork Reduction Act failed to comply with due diligence SUMMARY: This document contains final The collection of information in requirements set forth in regulations regulations relating to the tax return current § 1.6695–2 was previously prescribed by the Secretary with respect VerDate Sep<11>2014 16:15 Nov 06, 2018 Jkt 247001 PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 E:\FR\FM\07NOR1.SGM 07NOR1


Document Created: 2018-11-07 00:04:46
Document Modified: 2018-11-07 00:04:46
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective November 7, 2018.
ContactDonald 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.
FR Citation83 FR 55626 
RIN Number0960-AI37
CFR AssociatedAdministrative Practice and Procedure; Aged; Blind; Disability Benefits; Medicare and Reporting and Recordkeeping Requirements
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