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Medicare premium payment

Posted: Sat Jan 26, 2013 6:59 pm
by jwtietz
My wife was just 65 and is starting to receive Medicare pt B as of September. She is required to sign up for this and prescription D by her pension fund. Because our earnings are too high our Modified AGI has her paying a premium for Medicare B and prescription D coverage. I would like a record of the premium payments. Is there a statement of account somewhere that you can access showing payment to cms, or is there something like a 1099 sent out from ssa? I just paid it on our credit card. Thanks

Re: Medicare premium payment

Posted: Sat Jan 26, 2013 7:31 pm
by sscritic
I believe you mean she is paying a premium premium, unless the base premium is paid by the pension fund, in which case she is only paying the premium premium by itself. To avoid this confusion, let's call it what it is, the Income Related Monthly Adjustment Amount (IRMAA). IRMAA for 2013 at the first tier is $42 for Part B and $11.60 for part D. If she is on SS, her SSA-1099 will show the total premiums paid. Since there is no base premium for Part D, the Part D reported is IRMAA. The Part B reported will be the total of the base plus the IRMAA.

Since she is not receiving Social Security (or you wouldn't be using your credit card), you won't get a SSA-1099. I don't know what CMS provides you at the end of the year. Maybe someone else knows, or try calling them on Monday.

Re: Medicare premium payment

Posted: Sat Jan 26, 2013 7:46 pm
by sscritic
These are the 2013 rates. You should know the 2012 rates because you paid them. What sort of record do you need? I have a spreadsheet. Every month is exactly the same. If you write a check instead of using your credit card, can't you print the check image from your bank's website? You also have your credit card statement. I feel I am missing something.

Re: Medicare premium payment

Posted: Sat Jan 26, 2013 9:08 pm
by jwtietz
She gets a reimbursement for the part B and the D. They give the standard amount, with provisions for magi increases. To show the payment of the increased amounts they are now asking for proof of payment as in either a ssa1099, a quarterly statement (which I have not gotten and can find no reference to), or canceled check. I wrote 2 checks and the bank modified them into an instant transfer to cms with no image. The other 2 payments I used a credit card and have it on the statement but am not sure that is enough. I would like it if they (cms) issues some sort of end of the year statement of payment. Hope that is clearer as to my need. thanks

Re: Medicare premium payment

Posted: Sat Jan 26, 2013 10:22 pm
by sscritic
jwtietz wrote:She gets a reimbursement for the part B and the D. They give the standard amount, with provisions for magi increases. To show the payment of the increased amounts they are now asking for proof of payment as in either a ssa1099, a quarterly statement (which I have not gotten and can find no reference to), or canceled check. I wrote 2 checks and the bank modified them into an instant transfer to cms with no image. The other 2 payments I used a credit card and have it on the statement but am not sure that is enough. I would like it if they (cms) issues some sort of end of the year statement of payment. Hope that is clearer as to my need. thanks
You should have the initial letter showing the IRMAA amounts. I get mine from SS, and I would think you would too since medicare is part of the SS act. Note that the SSA-44, the appeal of their determination of your IRMAA, comes from SS. I know I get my annual notice of IRMAA from SS, but since I am getting SS and your wife isn't, there may be some slight difference (but I doubt it).

I also get reimbursed for Part B, but not Part D. My retirement system wants to see the letter from SS showing what I will be charged for Part B, including both the standard amount* and IRMAA. I am not sure why her system won't accept that. Can you pay your bank to research your payments and give you proof? I know I wouldn't want to, so I would ask the system if they would accept the letter from SS showing your premiums. On Monday, call CMS and ask if you can get a statement.

* Because of the hold harmless provisions and the years there was no SS cola, the standard amount isn't the same for everyone.

Re: Medicare premium payment

Posted: Sat Jan 26, 2013 10:51 pm
by sscritic
jwtietz wrote:To show the payment of the increased amounts they are now asking for proof of payment as in either a ssa1099, a quarterly statement (which I have not gotten and can find no reference to)
My understanding is that CMS bills quarterly. That would be your quarterly statement, not of what you paid but of what you owed. How did you know what to pay and where to send the payments if you did not get a statement. Were you paying monthly? You mentioned four payments: Sept, Oct, Nov, Dec, but not yet Jan?
If you get Social Security, Railroad Retirement Board (RRB) benefits, or Civil Service benefits, your Medicare Part B (Medical Insurance) premium will get deducted from your benefit payment. If you don't get these benefit payments and you sign up for Part B, you'll get a bill.
Did you get a bill? I think it is a Notice of Medicare Premium Payment Due (CMS-500) or something similar:
A premium notice, Notice of Medicare Premium Payment Due (HCFA-500), is sent to all beneficiaries who are billed directly.
Premium notices for Medicare Part A are issued monthly because of the high cost of the premium. Premium notices for Part B are issued on a quarterly basis.
I don't know why you are paying monthly, when the bills come quarterly.

Here is a previous thread where several people mention paying quarterly.
http://www.bogleheads.org/forum/viewtopic.php?t=81765

If you get a quarterly statement, then you have a quarterly statement to show.

Re: Medicare premium payment

Posted: Sun Jan 27, 2013 6:15 am
by jwtietz
I was sent the notice of the over limits magi. They send me a bill for Sept,oct and Nov for $419. In late sept they sent me another bill for 34.80 for med pt D increases. Then in late Nov I got another bill for $152 and another in Late Dec for $158.50. I just paid another in Jan 2013 for I believe $158.50. I just assumed that the billing was monthly or I would get a statement of account at some point. Stupid me.

Re: Medicare premium payment

Posted: Sun Jan 27, 2013 6:36 am
by carolinaman
You should get Form SSA 1099 from SS that lists her SS income and any deductions for 2012 (I got mine this week). This would include all payments for Part B and D. In addition, you should have received a statement from SS whenever your wife signed up indicating what she would pay including the premium for B & D. You also will get this annually. Those statements should suffice for proof. I assume SS can resend these upon request if you do not have them.

Re: Medicare premium payment

Posted: Sun Jan 27, 2013 7:09 am
by sscritic
jwtietz wrote:I was sent the notice of the over limits magi. They send me a bill for Sept,oct and Nov for $419. In late sept they sent me another bill for 34.80 for med pt D increases. Then in late Nov I got another bill for $152 and another in Late Dec for $158.50. I just paid another in Jan 2013 for I believe $158.50. I just assumed that the billing was monthly or I would get a statement of account at some point. Stupid me.
$158.50 is 146.90 + 11.60 = 104.90 + 42.00 + 11.60
= Part B + Part D = Part A base + Part B IRMAA + Part D (IRMAA)
This is your premium for 2013. You got a bill in December for January. You just paid another bill for February.

The other bills were for 2012 and used 2012 premiums. There is a start up period, so your 2012 bills were split.

$34.80 divided by 3 is $11.60. This is the Part D (IRMAA) for the three months of Sept, Oct, Nov
(it stayed the same at this level in 2013).

If your $152 bill was really $151.50, then that was 139.90 + 11.60 or Part B total plus Part D for December.
If your $419 bill was really $419.70, then that was 139.90 times 3 or the Part B total for the three months.

You paid 4 months of IRMAA of $40.00 and $11.60 for 2012 and you are paying $42.00 + $11.60 this year.

I can't believe you never got a letter explaining your premiums.

P.S. I hope you now understand that the word "statement" means bill, just as it does when it comes from your credit card company.

P.P.S. Since you are paying more than the standard amount, it might be that your billing is supposed to be monthly. I base that on the previous quote mentioning that Part A premiums are billed monthly because of the high cost and because you are now getting monthly bills. :)

Re: Medicare premium payment

Posted: Sun Jan 27, 2013 10:13 am
by pshonore
sscritic wrote:[I don't know why you are paying monthly, when the bills come quarterly.

Here is a previous thread where several people mention paying quarterly.
http://www.bogleheads.org/forum/viewtopic.php?t=81765

If you get a quarterly statement, then you have a quarterly statement to show.
My wife gets an annual bill. Her very small monthly SS benefit (retired teacher) does not cover the Part B premium. Medicare evidently will not do quartely bills under a certain amount so back in November, she got a bill that represented her annual Part B cost minus her annual SS benefit. And of course, her monthly SS deposit stopped. I imagine she will get another bill in November of this year for 2014

Re: Medicare premium payment

Posted: Sun Jan 27, 2013 10:21 am
by sscritic
I think we have the evidence now:

Small amounts, annual billing.
Regular amounts, quarterly billing.
Large amounts, monthly billing.

Really really large amounts, weekly billing? :)

Re: Medicare premium payment

Posted: Sun Jan 27, 2013 12:25 pm
by jwtietz
Well i got a little tied up with my mom in the hospital and just paid the bills when they came. I should have looked a little more closely at them, but they seemed to be inline with the letter i got for 2012 with reference to the magi. The second 2 payments seemed to be inline with the 2013 letter that i did get with the increased medicare and ptD payment plus the magi increase. I just was wondering if i would get some sort of statement showing payments made. It talked of this in the notice i got from the state requesting copies of the ssa letter and quarterly statements or canceled checks. I don't know why they billed monthly, but that might be the way they do it. Things will be easier when she reaches 66 and her full ret age. Then it will just be deducted from her check and i will get a ssa1099. Thanks for all the input, i guess this is what i get for saving all these years- too much $$. :D