Higher cost for Medicare

[Texas Proud]

I know that someone here has had to go through this, so hopefully you can help me help one of my sisters...


She sold an asset last year and had a $35K cap gain... this made her income go up over $100K....

She has been informed that her medicare premium for something (I do not remember which part) is going up for 2017. This is a one year spike in income and will not happen again...

Is there a way to not get this premium spike?

If not, will the premium go back to normal for 2018 after she goes back down in income?

 

[meierlde]

I know that someone here has had to go through this, so hopefully you can help me help one of my sisters...


She sold an asset last year and had a $35K cap gain... this made her income go up over $100K....

She has been informed that her medicare premium for something (I do not remember which part) is going up for 2017. This is a one year spike in income and will not happen again...

Is there a way to not get this premium spike?

If not, will the premium go back to normal for 2018 after she goes back down in income?

They use the modified agi to determine the level (taxable income plus tax exempt)

It would be for parts b and d.
But for 2018 they will look at the 2016 income. so it adjusts every year its called an income related monthly adjustment amount irmaa.

 

[kaneohe]

Here is the form for requesting a "non-increase" in premiums.
https://www.ssa.gov/forms/ssa-44.pdf
Note that the life-changing events specified from you to choose from is quite limited and a LTCG such as you describe is not included. You can still appeal but it seems unlikely to be changed if you do not have one of the specified life-changing events.

Consumer would say the event was a one-time event and SSA would say the increase is also a one-time and temporary 1 yr event.

 

[Texas Proud]

Here is the form for requesting a "non-increase" in premiums.
https://www.ssa.gov/forms/ssa-44.pdf
Note that the life-changing events specified from you to choose from is quite limited and a LTCG such as you describe is not included. You can still appeal but it seems unlikely to be changed if you do not have one of the specified life-changing events.

Consumer would say the event was a one-time event and SSA would say the increase is also a one-time and temporary 1 yr event.

Thanks for this.... I will pass it on to my sister...

 

[kaneohe]

As noted above, you can also appeal (which SSA seems to consider a different path). Didn't want to discourage but based (no personal experience) on similar questions/responses like yours in other forums, the odds appealing for "normal" events like you describe seemed low to me.
https://www.medicareinteractive.org...aling-a-higher-part-b-or-part-d-premium-irmaa

 

[braumeister]

There's a reason why SS has such a short list of "life-changing events"

But I can confirm that they will automatically remove the IRMAA surcharge when the MAGI goes back down on the next year's return. They evaluate it in November every year (when they get a copy of your previous year's tax return).

 

[Texas Proud]

Again, thanks for the info... at least it is a one time thing...

Does anybody know where the cut off point is

We could not do it last year, but if we can manage her income going forward that would be something I would want to do...

However, she is pretty steady since her total income is her pension, SS, RMD and whatever divis and cap gains her funds shoot off now... she sold the last of the real estate she owned... well, except for her house...

 

[braumeister]

Does anybody know where the cut off point is?

The threshold income amounts are given here:

https://secure.ssa.gov/poms.nsf/lnx/0601101020

 

[Texas Proud]

The threshold income amounts are given here:

https://secure.ssa.gov/poms.nsf/lnx/0601101020

Whew... she was within $2K of having to pay $80 more per month for part B...


BUT... she is going to be really close to having to pay the same amount for 2018 as her income is going to go up since she does not have any loss from her rental!!! We will see what happens...