Comments on: How Are Medicare Premium Increases Calculated?

By: Jim Blankenship, CFP®, EA

Jim Blankenship, CFP®, EA — Tue, 15 Nov 2011 02:43:46 +0000

Carl,

You should be able to get your premium reduced if your income has dropped enough. I’d contact Medicare and discuss your situation to see if that’s the case. It’s also possible that you might be eligible for a refund for premiums paid in 2010 if your income dropped enough.

By: Carl

Carl — Mon, 14 Nov 2011 17:57:55 +0000

Hi in 2009 I retired and with bonus, income and options I made enough to drive into paying 369.00 dollars for medicare. Do they look at my income each year and look two years back. Because my income dropped in 2010 and will drop more this year.

Thanks Jim

Carl

By: Jim Blankenship, CFP®, EA

Jim Blankenship, CFP®, EA — Sat, 16 Apr 2011 16:26:44 +0000

Natalie -

Without seeing your return(s) I can’t say for sure if amending will help your situation out or not. From what you’ve said, it sounds like your husband earns a significant amount and that is what is impacting your benefit… and I doubt if filing MFS will resolve that issue.

Sorry I couldn’t be of more assistance.

By: Natalie

Natalie — Mon, 11 Apr 2011 14:10:01 +0000

My Medicare Part B is 369.00 per month based on married filing jointly. My SSI income is only 669 per month. If I amend my prior year tax return and file as married filing separate returns can I get some of that medicare payment back. I talked to Medicare and SS and they said WE made too much money. I didn’t make anything except SS. Why are they taking so much out of my SSI, which leaves me with practically nothing.

By: Jim Blankenship, CFP®, EA

Jim Blankenship, CFP®, EA — Mon, 06 Dec 2010 15:43:03 +0000

Raymond:

This is one of the effects of a Roth Conversion that most folks don’t think about… even though you do not have the money for spending, you have recognized it as income with the conversion to Roth, therefore (as you have noted) all other calculations that depend upon your income as an input, will be affected, sometimes dramatically. The income used for the calculation is typically from two years prior to the current year.

On the other hand, in the following year when your income is back to “normal”, your Part B premium should reduce back to the standard premium.

Hope this helps -

By: Raymond

Raymond — Mon, 06 Dec 2010 15:25:10 +0000

I rollover my IRA into a ROTH IRA which I paid the Taxes out of another account $39,500. My rollover increased my Income to $240,000 on my 1040 Tax Form. This in turn according to the Social Security has increased my payment to Medicare as well as my wife’s.
Therefore I will now pay medicare Part B Premium $230.70 reducing my Social Security Check from $2,139.70 to $1,909.00. Is this correct because they said I cashed my IRA when I actually roll it over to a ROTH IRA? Thanks Ray

By: Jim Blankenship, CFP®, EA

Jim Blankenship, CFP®, EA — Sun, 11 Apr 2010 18:40:18 +0000

Hello, David -

Regrettably, I don’t have an answer for you. I’ve done quite a bit of searching around for the topic and have not found any information for you. I suggest that you turn to whoever told you that you could apply for a refund – or talk to your local/state contacts.

And if you find out something about this situation, please let me know. You can return here and post a comment with what you’ve found. In the meantime I’ll keep looking around as well.

Sorry I couldn’t help -

By: DAVID

DAVID — Sat, 10 Apr 2010 20:04:41 +0000

A FEW YEARS AGO I HAD A SIGNIFICANT INCREASE IN MY INCOME FOR THE YEAR BECAUSE I SOLD A MUTUAL FUND ON WHICH I HAD A LARGE CAPITAL GAIN TO PAY DOWN MY MORTGAGE. THIS RESULTED IN A LARGE INCREASE IN THE MONTHLY PREMIUM FOR MEDICARE FOR THAT YEAR. THIS WAS A ONE-TIME EVENT AND NOT REFLECTIVE OF MY ACTUAL ANNUAL INCOME. I WAS TOLD THAT I COULD APPLY FOR A REFUND OF THE INCREASED PREMIUM I PAID FOR THAT YEAR. IS THIS THE CASE AND, IF SO, HOW DO I GO ABOUT REQUESTING TH4E REFUND?

THANKS