Medicare Income-Related Monthly Adjustment Amount (IRMAA)
By: The FAI Team
If you are eligible for Medicare Part B and Part D while still earning a high income, you may be subject to the Income-Related Monthly Adjustment Amount, or IRMAA, added to your premium.
A Medicare law requires that some people, based on their income, pay higher premiums for their Medicare Part B (medical insurance) and Part D (prescription drugs). The additional amount you pay is called an Income-Related Monthly Adjustment Amount. The IRS provides the Social Security Administration (SSA) your income information from your latest filed tax return. The SSA then determines the amount you will pay for your Medicare premiums based on Medicare IRMAA tables.
If you have had a life-changing event since you filed your last tax return that has reduced your income or you will experience a life-changing event in the near future that will reduce your income, you can challenge the Social Security Administration’s findings and apply to have your premiums reduced. Acceptable life-changing events include marriage, divorce, death of a spouse, work stoppage (retirement), work reduction, loss of income-producing property, loss of pension income, and employer settlement payment.
If you want to challenge the SSA’s findings and you have a reduction in income for any of the above, you must file Form SSA-44 (click here). You must file your appeal within 60 days of receipt of the IRMAA letter you receive from the SSA. When completing the Form SSA-44, you will need to provide summary information on the form and attach documentation to prove the life-changing event and the current and projected reduced income level.
More information on the IRMAA and how to file the Form SSA-44 can be found in the Social Security Handbook, Chapter 25, (click here), and in the instructions attached to Form SSA-44.
As part of FAI’s wealth management offering, our advisors assist clients in navigating the complexities of Medicare and Social Security. If you have a minimum of $500,000 in investable assets, we welcome the opportunity to meet with you to discuss your financial planning and investment management concerns. Call us at 410-715-9200 to speak with one of our advisors.
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