Medicare Premiums

[j909496b]

 Hello,

 Can someone please help me sort out my medicare premiums problems?  Here's the issue.  After working for a company for 44 years I retired in Feb 2022 at the age of 64 and received early retirement severance pay for the remainder of the year .  The severance covered income and  COBRA health insurance payments for 2022 since I also lost company health insurance.

Upon turning 65 in Jan 2023 I applied for medicare.  They said my premiums would be over $500.00 per month because of my 2021 income.   Mind you, I did not work or earn any income in 2023 and will not in 2024.  They're stating I still have to pay the high premium because they're now looking at 2022 income.They look at 2 years prior income instead of current year income.  

Can anyone provide advice on how to proceed?

Thanks.🤔

[GailL1]

@j909496b 

You are being effected by the Medicare IRMAA Premium adjustment based on your income amount as reported by the IRS from two (2) years prior - That’s the latest tax return that the IRS has - 2022 Tax Year.  OR in your case when you initially filed for Medicare in January 2023, they are using your 2021 tax year return.

IRMAA Medicare premiums are the Income Related Medicare Adjusted Amount for premiums.

This is a good explanation of the IRMAA Medicare premium surcharge and shows the rate for both years.

ValuePenguin.com - 11/20/2023 - .What Are the 2023 and 2024 IRMAA Medicare Income Brackets?

You can file an appeal for a redetermination for some conditions.  The linked website says:  

If your life circumstances have changed dramatically in the last two years, you can file an appeal to eliminate or lower your IRMAA payment. The Social Security Administration (SSA) maintains a list of common qualifying events, such as marriage and job loss, on its website.

• Marriage
• Divorce
• Death of a spouse
• Work stoppage

• Job loss
• Income loss
• Pension loss
• Loss of a rental property

Call the Social Security Administration at 800-772-1213 (TTY 1-800-325-0778) if you’ve experienced two or more qualifying events. Otherwise, you can use the SSA-44 form, available on the Social Security Administration website, to appeal your IRMAA status by mail or fax.

HERE IS THE FORM TO APPEAL for REDETERMINATION:

SSA-44 FORM