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The first step to running a Scepter report is knowing how all the pieces work together and knowing which information influences costs.

In the image below, the last four pieces of information are the important pieces. Gender, which obviously cannot be changed, drives the cost of Medicare Part D. Current Age and Retirement Age will help calculate when the clock starts ticking on costs. Lastly, the Tax Status in Retirement field defines which means testing bracket the illustration will be compared against. For example, an individual with a tax status of single has a lower income threshold to the second Means-Testing bracket then a couple filing jointly. Choose the appropriate tax status to ensure the projections are in line with current situation.


Next up is the state of Residency in Retirement. Since Medicare Part D plans are offered by Private Insurance Companies, costs can vary state to state. So you may find that if you reside in Massachusetts your clients may pay more for Part D insurance than you would if you lived in Florida during retirement.


Now it is time to enter the individuals types of income. You will see there are 4 buckets of income and they are as follows: Social Security, Pension, Taxable Income and Non-Taxable Income. The first three buckets (Social Security, Pension and Taxable Income) all are subject to income means testing, which drives the cost of Medicare premiums. The last bucket, Non-taxable income, is not included in the means testing calculations.