You can claim Medicare fees related to that income. This is the way

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For some Medicare beneficiaries, premiums are just the beginning of the amount they have to pay each month to get coverage.

That is, instead of paying the standard premiums for Part B (outpatient care) and Part D (prescription drugs) like most Medicare enrollees do, their income is high enough that “the Income-Related Monthly Adjustment”, or IRMAA, in effect.

However, the surcharge is often based on their tax returns from two years ago – which may not accurately reflect their current financial situation.

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“For some clients, their income two years ago was significantly higher than it is now or will be when they retire,” said Elizabeth Gavino, founder of Lewin & Gavino and independent broker. established cum general agent for Medicare plans said.

The good news for those beneficiaries is that they can appeal the IRMAA.

“Most people don’t want to wait two years for lower income to catch up to them to be reduced or eliminated by the IRMAA,” said Danielle Roberts, co-founder of insurance company Boomer Benefits.

Of Medicare’s 63.3 million beneficiaries, about 7% — 4.4 million — pay monthly copayments, according to the Centers for Medicare & Medicaid Services. This is because various law changes over the years have required people with higher incomes to pay a larger share of the costs of Medicare.

The reason to use a tax return from two years ago is that it is usually the most recent return available when the Social Security Administration makes its IRMAA decision before each new year.

For 2022, IRMAA starts working for individuals with revised adjusted gross income over $91,000. For couples filing jointly, the surcharge starts above $182,000 next year. Surcharges increase at higher income thresholds.

The standard monthly premium for Part B next year is $170.10, which is what most Medicare beneficiaries pay. (Part A, which provides hospital coverage, usually has no premium.) Surcharges for those with higher incomes range from $68 to $408.20, depending on income. That results in monthly premiums ranging from $238.10 to $578.30.

For Part D, the surcharge for 2022 ranges from $12.40 to $77.90. It’s in addition to any premiums you pay, whether through a stand-alone prescription drug plan or through a Medicare Advantage Plan, which typically includes Part D coverage. While premiums differ For prescription coverage, the average for 2022 is about $33.

The process to prove that your current income is lower includes asking the Social Security Administration to review their assessment. You have to Fill out a form and provide supporting documents.

“The best way to appeal is to file your application with as much evidence as possible,” says Roberts.

Appropriate evidence may include a more recent tax return (if applicable), a letter from your former employer stating that you are retired, a more recent pay stub or something similar for see evidence that your income has decreased.

The required form has a list of “life-changing” events that qualify as a reason for IRMAA reduction or elimination, including marriage, spouse death, divorce, loss of pension or the fact that you have stopped working or reduced your working hours.

If your efforts don’t work, you can appeal the decision to an administrative law judge, although the process can take time and you’ll continue to pay those fees in the meantime. .

Additionally, your situation is reassessed annually, which means that the IRMAA (or whether you pay them) can change from year to year, depending on how volatile your income is. You can claim Medicare fees related to that income. This is the way

Emma James

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