I understand that premiums for Medicare Part B will be means-tested starting in 2007. For a single person with income between $80 to $100K, he/she will pay 1.4 times the standard monthly premium. Between $100K to $150K he/she pays
2 times as much, between $150K and $200K, 2.6 times as much, and above $200K, 3.2 times. These income limits double for married filing joint. I also understand that the income test is based on one's income two years prior to the year the premium increase kicks in. Question 1: Is my understanding correct?Question 2: What counts as income - AGI, taxable income, other? Question 3: Other things being approximately equal, is it feasible to minimize this extra bite for a married couple by registering the couple's accounts in, say, the wife's SS number, and letting her take the brunt of the income (assuming that interest, dividends, and cap gains represent the bulk), and filing as married-separate? In this way, only the wife might be subject to the means-testing. Question 4: What are some strategies for eliminating/minimizing the impact of means testing? For example, a person or couple might try to reduce the extra bite to every other year by bunching up charitable deductions, state income tax, etc. to every other year, alternating with the standard deduction, and at least getting to pay only the standard Medicare premium every other year. I appreciate any insights or approaches.