For those on Medicare, starting Medicare, or researching Medicare for the future, you may have come across an acronym, IRMAA. It stands for your Income-Related Monthly Adjusted Amount. Medicare premiums are based on income and if your income in 2016 is higher than $170,000 for married couples and $85,000 for single filers, you will pay an additional amount in premiums in 2018.
Medicare premiums are based on your income from 2 years prior. This can be extremely frustrating for individuals who have had a change in life circumstances over the past 2 years. For example if you retired in 2017 and were a high-income earner, it is possible that your 2018 premiums will be high even though your income has significantly dropped.
However, Medicare will sometimes make exceptions and lower or remove your IRMAA under various circumstances including stopping work, marriage change, and others. If you feel like this may be you, you should call Social Security at 1-800-325-0778
**Disclaimer: Reston Wealth Management has provided this information as a service and does not provide legal, accounting or tax advice. The appropriate professionals should be consulted on all legal, accounting and tax matters. Every individual situation is unique and a proper plan should be put in place before making a decision regarding Social Security and Medicare. The Social Security Administration alone makes all final determinations on your eligibility for benefits and the benefit amounts. You should consult with your local Social Security Office before acting upon any information provided.