How ‘life-changing events’ can lower Medicare premiums

Dear Toni: I turned 65 in November and enrolled in Medicare. I received a letter from Social Security stating that I must pay $527.50 for Part B and $70 for Part D. The IRS states that my income was $375,000 in 2022.

The high income level is because my husband was working in 2022. Charlie died in February, and my income now is only my Social Security check of $2,400 a month.

How do I inform Social Security that my income has changed? — Gwen from Austin, Texas

Dear Gwen: You do not want to wait the usual two years for the IRS to inform Medicare that your income has decreased because of a “life-changing event” (such as death of a spouse). You want to let Medicare know now that you (or your spouse) are no longer earning that higher income.

Many Americans still believe that everyone pays the same amount for their Medicare Parts B and D. Those days are long gone.

If your income as an individual was over $97,000 for 2023 and is over $103,000 in 2024, or if your married/joint income was over $194,000 for 2023 or is over $206,000 for 2024, then your Parts B and D premiums will be more. Social Security bases the premiums on the modified adjusted gross income from your last filed tax return.

But special situations, also known as “life-changing events,” can lower your income-related monthly adjusted amount.

Below are a few “life-changing events” that can decrease your modified adjusted gross income:

■ You got married or divorced or your spouse died.

■ You or your spouse stopped working or reduced your hours.

■ Because of a disaster or other event beyond your control, you lost property that was generating income.

■ You or your spouse’s benefits from an insured pension plan stopped or went down.

Use form SSA-44, “Medicare Income-Related Monthly Adjusted Amount — Life-Changing Event,” to advise Social Security of your change in income. Visit SSA.gov to download the form.

Once Social Security is satisfied with the evidence, it will update its records and correct the premiums to reflect your current income.

Gwen, since you are now single and no longer receiving Charlie’s income, you will have significant changes to your income amount. The IRS and Social Security office review your tax returns each year and will adjust your Parts B and D premiums to correspond with your new income level the following year. You will want to keep filing form SSA-44 until your last filed return reflects your current income.

Toni King is an author and columnist on Medicare and health insurance issues. If you have a Medicare question, email info@tonisays.com or call 832-519-8664.