If you are one of the lucky retirees whose modified adjusted gross income (MAGI) exceeds $85,000 (for a single person) then you will be subject to Medicare’s income-related monthly adjustment.
What that means is that you will pay more for your monthly Medicare Part B and extra for your Part D prescription drug plan. Some refer to IRMAA as a Medicare ‘surcharge’ for wealthier individuals.
“These new premium adjustments were created under the Affordable Care Act and first went into effect in 2011.” according to medicare.gov
For more information you can use the link: https://medicare.com/about-medicare/what-are-medicare-part-d-irmaa-and-part-b-irmaa/
According to the medicare.gov website: “IRMAA Part B and IRMAA Part D premium adjustments are calculated by the Social Security Administration (SSA) based on information you submit to the Internal Revenue Service (IRS) with your yearly income tax return.”
IRMAA is based on income data you reported two years prior; in 2018, for example, the SSA (Social Security Administration) uses your 2016 income to decide on whether you are assessed under IRMAA.
The medicare.gov site also provides a helpful table to calculate - what is the extra amount that you will be paying (as long as your income meets the criteria.)
According to Medicare, only 5% of Medicare beneficiaries are subject to IRMAA Part B and IRMAA Part D.
If you are subject to IRMAA - There is an opportunity to change/reduce the IRMAA adjustment charge.
According to Form SSA-44, available on the ssa.gov website there are certain life changing situations that qualify: the “life changing situations” noted are: marriage, divorce/annulment; death of spouse; work stoppage; work reduction; loss of income producing property; loss of pension income and employer settlement payment. You must file form SSA-44 .
You will find the form on ssa.gov site.
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