Help! Our Part B is really expensive!
Joe and Nancy called our office soon after signing up for their Medicare plans. They were concerned that they had been billed for more than the monthly $134 each for their Part B of Medicare. It was a whopping $267.90 a month each!
We assured them there was a logical answer and proceeded to ask questions. We reminded them that in our prior meeting we had asked if their income was more than $170,000 a year, filing joint on their taxes. They had told us “no”. If your income is below the $170,000 filing joint, everyone pays the $134 for Part B. What they didn’t tell us was that Joe had gotten a retirement check the year before, and for that year their adjusted gross income was way above the $170,000.
When Medicare is establishing your Part B and Part D monthly premiums, they check your last two years IRS returns and base your Part B premium on those amounts. Since their income the year before was about $250,000 it resulted in $267.90. “Is there anything we can do?” they exclaimed? Yes! File an appeal with Medicare that informs them that you had a life event and retired, and your yearly income will be much lower, and below the $170,000 threshold per year.
They were happy with the instructions we offered, but keep in mind that even with an appeal it is not certain their Part B premium will be reduced. It’s never a sure thing when dealing with Medicare.
Medicare will automatically review your Part B premium amount each year when you file your taxes with the IRS. Medicare will then automatically adjust up or down your monthly Medicare Part B premium. You must keep in mind that Medicare, the IRS, and Social Security are really good friends and they each know everything about you, especially your yearly income!
$$ Filing Single $$ Filing Jointly You Pay Monthly *IRMAA Part D IRMAA**
$85,000 or Less $170,000 or Less $134 $0
$85,000 to $107,000 $170,001 to $214,000 $187.50 $13.00
$107,001 to $133,500 $214,001 to $267,000 $267.00 $54.20
$160,001 to 214,001 $320,001 to $428,000 $428.60 $74.80
*IRMAA Income Relate Monthly Adjustment Amount for Part B Medicare **Same for Single or Joint
Refer to the chart for 2018 and see where your income will fall and then see the corresponding Part B premium you will be responsible for.
Also, Medicare will automatically deduct the monthly Part B premium right out of your Social Security monthly benefit check. If you are not taking your Social Security check because you are letting it grow, Medicare will bill you quarterly. If you are billed you can pay with a check, credit card, or set up autopay out of your bank checking account.
*Source: www.medicare.gov