If your Medicare Part B premiums increased, it may be due to IRMAA (Income-Related Monthly Adjustment Amount). IRMAA applies when Medicare looks at your Modified Adjusted Gross Income (MAGI) from two years ago and determines whether you earned above certain income thresholds, even if your income has since dropped.
The good news? You may be able to appeal.
An appeal is appropriate if you’ve experienced a life-changing event that permanently reduced your income, such as:
- Retirement or work stoppage
- Death of a spouse
- Divorce
If your income is lower now and will stay lower, an appeal is often worth pursuing.
The appeal form has two key pages:
- Page 1: Basic information and confirmation of the income Medicare used.
- Page 2: Where you explain why your income dropped and when it happened.
You’ll either:
- Report income that has already decreased, or
- Estimate a future income reduction if the drop hasn’t occurred yet.
Accuracy matters, as Social Security will verify the information you provide.
Your appeal will only be approved if you provide evidence, such as:
- A recent federal tax return
- A retirement or termination letter from your employer
- Pay stubs showing reduced income
Including a brief personal letter explaining your situation can also help.
We’ve found that when appeals are done correctly, most are approved, often saving retirees thousands of dollars per year in Medicare premiums.
If you’ve recently retired or experienced a major income change and your Medicare premiums increased, it’s worth reviewing whether an IRMAA appeal makes sense for you. If you have questions, we’re here to help.
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