Medicare PartB - reduce paid amount each month?

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patandjames72
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Location: 11710

Medicare PartB - reduce paid amount each month?

Post by patandjames72 »

So let me try to explain this: In 2019 I was laid off from my job. I got severance package worth gross as $145,000. I was not laid off tho until April 1st. so I got income for the 1st quarter as $36,000. So for 2019, my gross income was $181,000. My wife only contributes $35,000 per year - so our 2019 gross is $216,000. In 2021 I will need to pay my Medicare Plan B cost $270.90 per month based on this salary. IN 2020,and 2021 I will not have a job and live off savings, pension, and social security where by my gross (wife and me) will just be $103,000 per year. Is there any way to get the government to characterize my medicare part B GROSS Salary so I only have to pay $135.50 per month???? What is the process to get the monthly Plan B cost reduced? In 2022, my gross salary will be $130,000 so it will just be $135.50 per month and takes care of itself each year thereafter. Hopefully this is clear?
Flyer24
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Re: Medicare PartB - reduce paid amount each month?

Post by Flyer24 »

Thread is now in the Personal Finance (not investing) section.
mhalley
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Re: Medicare PartB - reduce paid amount each month?

Post by mhalley »

Work stoppage is one of the reasons you can file for an irmaa appeal.

https://www.ssa.gov/forms/ssa-44-ext.pdf

https://boomerbenefits.com/reconsideration/
Topic Author
patandjames72
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Location: 11710

Re: Medicare PartB - reduce paid amount each month?

Post by patandjames72 »

Ok - this is my 2nd year requesting a reduced Medicare premium-as LIFE Changing Event" My wife just got a letter from them saying they are going to increase it next year. So I am filing another SSA-44 with the same documentation. I had zero income in 2020, and we are stating that in the letter we are writing as follows: "

To Whom it Concerns:

The information from the IRS is correct, but my Husband, Jerry Clare [social security xxx-xx-xxxx], lost his job on April14th, 2019. This information was filed with Social Security on Feb 25th 2020 as a "life changing event".

New information for you is that my husband, Jerry Clare, looked for a new job to replace his income from 2019. He has been unable to get a new job in 2020 and has no job related income for 2020. He did receive New Jersey unemployment and the pandemic unemployment monies during the year which helped us deal with our expenses in 2020.

Since he has no job, our income in 2020 and as we look forward to 2021 will be reduced to what we believe is about $100,000. This income will come from pensions, social security, savings, and retirement savings.

Please do not raise our Medicare premiums due to this situation.

Regards,




Nancy Clare

I have attached the following documents as part of this update:
1) SSA-44(11-2019)
2) New Jersey Unemployment on exhausted claim statement
3) Husband’s W2 from 2019, 2018, 2017
4) JPMorgan Chase notice of termination (2019)
5) 2019 Joint Federal Tax return
6) Nov 2nd letter to me from Social Security



Is there any suggestions besides the filling out of SSA-44 with 2019 and 2021 info that I need to do to account for this for the next year???
Thank you in advance for your help.
HoneyBee
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Re: Medicare PartB - reduce paid amount each month?

Post by HoneyBee »

Hi there,

Could you post the result of your latest SSA-44 application? That is, whenever you hear from Medicare/SSA.

I too will need to file a SSA-44 form for perhaps two years in a row. I retired in 2020 and my 2019 income would put me several tiers up on the IRMAA scale. My 2020 income will be close to the limit. But my 2021 income will plummet. I plan to file for Medicare Part B in January 2021 and it will be effective July 1, 2021.

thanks.
Topic Author
patandjames72
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Location: 11710

Re: Medicare PartB - reduce paid amount each month?

Post by patandjames72 »

I sent in my SSA-44 and am waiting on a result. I also sent one in for my wife since we file married filing jointly. For my wife - even tho she paid in 2020 $148 or so for medicare part B and she had an approved SSA-44 on file - they hit her with $1,478 of not paid medicare plan B expense at the end of 2020 as IF the SSA-44 was never filed. So not very happy on that - in 2020 she had $516 gross income on file.
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Eagle33
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Re: Medicare PartB - reduce paid amount each month?

Post by Eagle33 »

patandjames72 wrote: Wed Apr 07, 2021 1:53 pm I sent in my SSA-44 and am waiting on a result. I also sent one in for my wife since we file married filing jointly. For my wife - even tho she paid in 2020 $148 or so for medicare part B and she had an approved SSA-44 on file - they hit her with $1,478 of not paid medicare plan B expense at the end of 2020 as IF the SSA-44 was never filed. So not very happy on that - in 2020 she had $516 gross income on file.
2020 Medicare premiums would have been based on your combined 2018 MAGI. 2021 premiums are based on 2019 MAGI.
Rocket science is not “rocket science” to a rocket scientist, just as personal finance is not “rocket science” to a Boglehead.
water2357
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Re: Medicare PartB - reduce paid amount each month?

Post by water2357 »

You get a life changing event exception when you retire if you can prove that during the year of your retirement and/or the next year your income will decrease to a lower IRMAA bracket. So, assuming 2019 was the last year you had high income and you are applying for Medicare in 2021, normally Medicare would look at your 2019 MAGI to determine if you owe IRMAA in 2021.

If however in 2020 your income decreased such that using 2020 MAGI would put you in a lower IRMAA bracket than your 2019 MAGI, you file an SSA-44 form to tell Medicare(actually the Social Security Administration) that you had a life changing event, e.g. retirement, that lowered your income to the point that IRMAA would decrease. You file that SSA-44 after you have applied for Medicare, so SSA has your information on file (check with them that you are set up to receive Medicare), but before Medicare actually starts billing you (deducting) for your 2021 Part B premium. You report on SSA-44 what you have estimated your 2020 MAGI to be and provide what proof you can that it will be what you have estimated. If you were laid off from your job, Medicare often wants to see the documents of any severance agreement showing you were laid off or proof from your employer that you retired.

If Medicare (SSA) approves the exception, Medicare will use the 2020 MAGI estimate that you provided instead of your actual 2019 MAGI to determine your IRMAA premium for 2021. If your actual 2020 MAGI ends up being higher, Medicare will recalulate your 2021 IRMAA premium and bill you for the difference.

So, next Medicare will be using your actual 2020 MAGI to determine your 2022 IRMAA premium. Your income as reported on your 2020 tax return has now decreased and Medicare will use the 2020 MAGI as it is reported on your 2020 taxes for determine you 2022 IRMAA premium. There is no further impact from your life changing event and no SSA-44 to file.

The way you would have 2 years of SSA-44's filed back to back is if 2019 is your last year of high income, and you apply for Medicare in 2020. Medicare would be looking to use your 2018 MAGI for your 2020 Medicare IRMAA determination, but you file SSA-44 telling them that your were retired/laid off since 2018 and your income MAGI as of 2020 is lower to the point it puts you in a lower IRMAA bracket. Submit your estimated 2020 MAGI on the SSA-44, substantiate it and if Medicare/SSA approves your estimated 2020 MAGI will be used to determine your 2020 IRMAA premium. So, the next year 2021, you are still retired/laid off but Medicare/SSA would normally use your 2019 MAGI to determine your IRMAA premium but your 2019 is high since you were still working. So, you have to file SSA-44 again to tell Medicare again that you were retired/laid off in 2019 and your income decreased such that you are in a lower IRMAA bracket. On the SSA-44 you tell Medicare your estimated MAGI for 2021, provide some proof, if Medicare approves they will use your 2021 estimated MAGI for your 2021 IRMAA determination. Now it's 2022, Medicare will use your 2020 actual MAGI for IRMAA. Your life changing event is over, your 2020 MAGI is lower, Medicare can see this. Medicare will now proceed with using your MAGI from 2 years back for your current and all future IRMAA determinations (unless you truly qualify for another life changing event per the SSA-44, and you are already retired, so it won't be that).

Bottom line you either file SSA-44 for one year or two years depending on how soon your new lower income actually appears on your 1040 after your retirement.
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