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2018 COLA INCREASES FOR MEDICAID, SOCIAL SECURITY, MEDICARE, TAX AND VETERANS

by: Begley Law Group

by Thomas D. Begley, Jr., Esquire, CELA

There are a great many public benefit numbers and tax numbers that are adjusted on an annual basis. This article is designed to make those numbers readily available. The following are current numbers for 2018.

Medicaid

  • Income Cap[1] $2,250
  • Maximum Community Spouse Resource Allowance (CSRA)[2] $123,600
  • Minimum CSRA[3] $24,720
  • Maximum Minimum Monthly Maintenance Needs Allowance (MMMNA)[4] $3,090
  • MMMNA (July 1, 2017 until June 30, 2018)[5] $2,030
  • Excess Shelter Allowance (July 1, 2017 until June 30, 2018)[6] $609
  • Maximum Resource Limit (Individual)[7] $2,000
  • Minimum and Maximum Cap on Equity in the Home[8] $572,000 –$858,000

Social Security

  • There will be a 2.0% COLA increase for Social Security benefits.
  • Maximum Social Security benefit for a single individual retiring at full retirement age[9]    $2,788
  • Supplemental Security Income (SSI) – Single[10]  $750
  • Supplemental Security Income (SSI) – Couple[11]   $1,125
  • Supplemental Security Income (SSI) – Essential Person[12]   $376
  • Maximum Annual SSI benefit – Single[13] $9,000
  • Maximum Annual SSI benefit – Couple[14] $13,500
  • Substantial Gainful Activity (SGA) – Disabled[15] $1,180
  • SGA – Blind[16]    $1,970
  • Tax Rate Employer and Employee calculated separately[17] (includes OASDI and Medicare)

Add an additional .09% for individuals earning more than $200,000 or married couples earning more than $250,000    7.65%

  • Tax Rate Self Employed[18]       30%
  • Trial Work Period[19]           $850
  • Maximum Social Security Wage Base[20]      $128,700
  • Quarter of Coverage[21]            $1,320

Medicare

Part A

  • Medicare Co-Payment – Skilled Nursing Facility (SNF)[22] $167.50
  • Hospital Deductible[23] $1,340
  • Per day Co-Insurance – Day 61 -90[24] $355
  • Per day Co Insurance – Day 91-150[25] $670

Part A Premium (for voluntary enrollees only)

  • With 30-39 quarters of Social Security coverage[26] $232
  • With 29 or fewer quarters of Social Security coverage[27] $422

Part B

  • Medicare Part B Deductible[28]  $183
  • Standard Part B Premium[29]    $134

Medicare Part B – Single or Married and Filing Joint Return

Part B Income-Related Premium[30]

Beneficiaries who file an individual tax return with income:

 

Beneficiaries who file a joint tax return with income: Income-related monthly adjustment amount Total monthly premium amount

 

Less than or equal to $85,000

 

Less than or equal to $170,000 $0.00 $134.00
Greater than $85,000 and less than or equal to $107,000

 

Greater than $170,000 and less than or equal to $214,000 $53.50 $187.50
Greater than $107,000 and less than or equal to $160,000

 

Greater than $214,000 and less than or equal to $320,000 $133.90 $267.90
Greater than $160,000 and less than or equal to $214,000

 

Greater than $320,000 and less than or equal to $428,000 $214.30 $348.30
Greater than $214,000 Greater than $428,000 $294.60 $428.60

In addition, the monthly premium rates to be paid by beneficiaries who are married, but file a separate return from their spouse and lived with their spouse at some time during the taxable year are:

Beneficiaries who are married but file a separate tax return from their spouse:

 

Income-related monthly adjustment amount Total monthly premium amount
Less than or equal to $85,000

 

$0.00 $134.00
Greater than $85,000

 

$214.30 $428.60

 

Standard Part D Cost-Sharing for 2018[31]

  • Annual Deductible Maximum $405
  • Member Pays 25% of the Next…      $3,300 (25% = $825)
  • Initial Benefit Period Maximum    $3,750 ($400 + $3,300)
  • Donut Hole Threshold    $3,725

(Brand name drugs: 50% + 5% plan “subsidy,” Generic drug: 49% subsidy)

  • Catastrophic Coverage   $5,000 ($400 + $825 + $3,725)
  • Catastrophic cost-sharing:  Generic           $3.35/$8.35 or 5% (whichever is greater)
  • Catastrophic cost-sharing: Brand        $7.40 or 5% (whichever is greater)

Tax

  • Annual Gift Tax Exclusion[32]      $15,000
  • Gifts to Non-Citizen Spouse[33] $152,000
  • Income Level/Maximum Tax Estates and Trust[34]    $12,700
  • Income Level/Maximum Single Individual Income Tax[35]    $426,700
  • Federal Estate Tax Exemption[36] $5,600,000
  • Personal Exemption[37]     $4,150
  • FICA Wage Threshold[38] Domestic Workers   $2,100
  • FUTA Wage Base[39]    $7,000
  • Maximum IRA Contribution[40] $5,500
  • “Catchup” IRA Contribution[41] $1,000
  • Applicable Allowable AGI Limit Roth IRA Single Taxpayer[42] $120,000 –$135,000
  • Applicable Allowable AGI Limit Roth IRA Married Taxpayer Filing Jointly[43]    $189,000 – $199,000
  • Medicare Tax on Earned Incomes over $200,000 – Single, over $250,000 – Married[44]    0.9%
  • Medicare Tax on Unearned Incomes over $200,000 – Single, over $250,000 – Married[45]   3.8%

Veterans Aid & Attendance and Household Benefits

Aid and Attendance

  • Veteran with no dependents $1,830 per month
  • Veteran with one dependent $2,169 per month
  • Spouse of deceased Veteran with no dependent $1,176 per month

Housebound Benefits

  • Housebound Veteran, no dependents $1,340 per month
  • Housebound Veteran, one dependent $1,688 per month
  • Housebound spouse of deceased Veteran, no dependent $899 per month

 

[1] 42 U.S.C. §1396a(a)(10)(A)(v); 2018 SSI and Spousal Impoverishment Standards, www.medicaid.gov.

[2] 2018 SSI and Spousal Impoverishment Standards, www.medicaid.gov.

[3] 2018 SSI and Spousal Impoverishment Standards, www.medicaid.gov.

[4] 2018 SSI and Spousal Impoverishment Standards, www.medicaid.gov.

[5] 82 Fed. Reg. 8832 (Jan. 31, 2017).

[6] 82 Fed. Reg. 8832 (Jan. 31, 2017).

[7] 20 CFR § 416.1205(c).

[8] 42 U.S.C. §1396p(f); 2018 SSI and Spousal Impoverishment Standards, www.medicaid.gov.

[9] Fact Sheet, Social Security, 2018 Social Security Changes, ssa.gov.

[10] 82 Fed. Reg. 50209 (Oct. 30, 2017).

[11] 82 Fed. Reg. 50209 (Oct. 30, 2017).

[12] 82 Fed. Reg. 50209 (Oct. 30, 2017).

[13] 82 Fed. Reg. 50209 (Oct. 30, 2017).

[14] 82 Fed. Reg. 50209 (Oct. 30, 2017).

[15] 82 Fed. Reg. 50209 (Oct. 30, 2017).

[16] 82 Fed. Reg. 50209 (Oct. 30, 2017).

[17] Fact Sheet, Social Security, 2018 Social Security Changes, ssa.gov.

[18] Fact Sheet, Social Security, 2018 Social Security Changes, ssa.gov.

[19] 82 Fed. Reg. 50209 (Oct. 30, 2017).

[20] 82 Fed. Reg. 50209 (Oct. 30, 2017).

[21] 82 Fed. Reg. 50209 (Oct. 30, 2017).

[22]82 Fed. Reg. 55367 (Nov. 21, 2017).

[23]82 Fed. Reg. 55367 (Nov. 21, 2017).

[24]82 Fed. Reg. 55367 (Nov. 21, 2017).

[25]82 Fed. Reg. 55367 (Nov. 21, 2017).

[26]82 Fed. Reg. 55365 (Nov. 21, 2017).

[27]82 Fed. Reg. 55365 (Nov. 21, 2017).

[28]82 Fed. Reg. 55370 (Nov. 21, 2017).

[29]82 Fed. Reg. 55370 (Nov. 21, 2017).

[30] 82 Fed. Reg. 55372 (Nov. 21, 2017).

[31] http://www.medicareadvocacy.org.

[32] I.R.C. §2503; Rev. Proc. 2017-58 (3)(.37)(1).

[33] I.R.C. §2523; Rev. Proc. 2017-58 (3)(.37)(2).

[34] I.R.C. §1(e); Rev. Proc. 2017-58 (3)(.01) Table 5 Section 1(e).

[35] I.R.C. §1(c); Rev. Proc. 2017-58 (3)(.01) Table 3 Section 1(c).

[36] I.R.C. §2010; Rev. Proc. 2017-58 (3)(.35).

[37] I.R.C. §151; Rev. Proc. 2017-58 (3)(.24)(1).

[38] 82 Fed. Reg. 50209 (Oct. 30, 2017).

[39] IRC § 3306(b)(1).

[40] IRC § 219(b)(5)(A);IR-2017-64.

[41] IRC § 219(b)(5)(B); IR-2017-64.

[42] IR- IR-2017-64.

[43] IR- IR-2017-64.

[44] IRC § 3101(b).

[45] IRC § 1411.