You Can Reduce Medicare Payments by Appealing for Lost Income!
Around 7% of Medicare beneficiaries end up paying more money because of income related charges.
Medicare is a health insurance program primarily designated for people age 65 and older, although people under 65 with certain disabilities and conditions may also qualify.
Read more: Medicare Part B premiums for 2022
Medicare functions on a federal level while the rules for Medicaid are set by each state — although Medicaid is also a federal health program,” said Jagger Esch, president and CEO of Elite Insurance Partners
Medicare Part A (hospital insurance) and Part B (medical insurance) are provided by the federal government and make up Original Medicare.
Medicare Part C, also known as Medicare Advantage, is provided by private insurance companies. Part C is an alternative to Original Medicare and contains Part A, Part B and sometimes, Part D. Part D is also provided by private insurance companies.
“The law requires Medicare parts B and D to make premium adjustments based on a person’s income,” according to Medical News Today. “A person’s income cannot be so high that it disqualifies them for Medicare. Even those who receive very high incomes may enroll. However, individuals with higher incomes pay higher premiums.”
To alleviate this, beneficiaries can apply to appeal the IRMAAs.
The Social Security Administration (SSA) makes IRMAA determinations ahead of each new year and will typically use the most recent tax return available, which could be from two years earlier.
For this tax year, IRMAAs kick in when your modified adjusted gross income exceeds $88,000, or $176,000 for married couples filing jointly. The higher your household income, the higher the surcharge.
To appeal the determination, you must fill out a form and ask the SSA to reconsider their decision, including proof that your current income is lower.
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