I have been reading your articles regarding turning 65, being laid off and enrolling in Medicare properly but I have not read an article on how to lower my Medicare monthly premium. I need help.
I turned 65 in September and enrolled in Medicare. I received a letter from Social Security stating that I must pay $544.30 for Part B and $71.30 for Part D, totaling $615.60 monthly. The IRS states that my income was $345,000 in 2020.
My husband passed away in February, I only have my Social Security check of $2400 a month to pay bills, no longer including my husband’s income.
How do I inform Social Security that my income has changed? I have heard from friends that you are aware of a special way I can bring my Medicare premium to a lower, affordable amount. Thanks…Gwen from Destin, FL
Hi Gwen:
Do you want to wait 2 years for the IRS to inform Medicare that your income has decreased due to a “Life Changing Event” such as the death of a spouse, recently married/divorced, retired, being laid off/working part-time, etc., or do you want to let Medicare know now that you have had a “Life Changing Event,” because you or your spouse are no longer earning that amount of income?
Many Americans still believe that everyone pays the same amount for their Medicare Parts B and D premium. Those days are long gone!
If your income as an individual is over $91,000 for 2022 and $97,000 in 2023 or your married income is over $182,000 for 2022 or $194,000 in 2023, then your Medicare Parts B and D premiums will be more. Social Security explains in the letter that is mailed to you, how they arrived at the Part B and D premiums based on your “Modified Adjusted Gross Income” (MAGI) from your last filed tax return.
Your MAGI was over $340,000 and the table used in the letter you received from Social Security shows what the Part B and Part D “premium adjustment will be, whether you are filing single or married.
There are special situations also known as “Life Changing Events” that can lower your “income-related monthly adjusted amount” (IRMAA).
Below are some of the life-changing events that can make your income go down:
• You have gotten married or divorced, or your spouse has died.
• you or your spouse have stopped working or have reduced your hours.
• you have lost property that you were making money from due to a disaster or other event beyond your control, or
• yours or your spouse’s benefits from an insured pension plan stopped or went down
Use form SSA-44 titled “Medicare Income-Related Monthly Adjusted Amount – Life-Changing Event” to advise Social Security of your change in income. Visit SSA.gov to download SSA-44 or view chapter 8 of Toni’s Medicare Survival Guide Advanced edition for Medicare forms including SSA-44 and others.
Once Social Security is satisfied with the evidence, it will update its records and correct Part B and Part D premiums to what your current income is.
**Social Security reviews your filed tax returns each year and will adjust your Part B and D premiums to correspond with your new income level the following year. You will want to keep filing Form SSA-44 until your last filed return reflects your current income.
Toni’s new Medicare Moments podcasts are at www.seniorresource.com/medicare-moments. Email info@tonisays.com or call 832/519-8664 for answers to your Medicare questions.
