How do I know if I need a medicare premium adjustment

[Time2]

I made a mistake and doubled up on 2022 withdrawals and had a AGI of a little over $300k. Do I have an to pay more for medicare? If I do, does the government tell me? I used turbotax and it didn't tell me I owe more money. My medicare bill has not changed. What's up?

 

[youbet]

Are you referring to IRMAA?

 

[pb4uski]

Yes. Yes. In 2024 (2 year lag).

 

[Time2]

Are you referring to IRMAA?

I think so, I had originally typed IRMAA, and then changed it because I wasn't sure that was it.

 

[Time2]

Yes. Yes. In 2024 (2 year lag).

So then after 2024 it drops off if my income is lower? It will be!
I'll just get a medicare bill that is higher, I don't have to do anything?
Other than pay it.

 

[Midpack]

So then after 2024 it drops off if my income is lower? It will be!

Yes. IRMAA is annual, with a 2 year lag. 2024-25 thresholds (based on 2022-23 MAGI) aren’t published yet but $300K in 2022 probably means you’ll pay 2X Medicare Part B & Part D premiums in 2024 if you’re MFJ. If your income drops below $208K (estimated) in 2023, your Medicare premiums will go back to 1X. Don’t worry, you’ll be notified…you don’t have to do anything.

 

[Time2]

Oh, geez, by 2024 my wife will be on Medicare also.
Her premium will be higher also?


What are the rules about keeping a a private BCBS policy for an extra year?
I think it would be a lot cheaper for her just to keep her existing policy than paying double for A & B.

 

[rayvt]

I made a mistake and doubled up on 2022 withdrawals and had a AGI of a little over $300k. Do I have an to pay more for medicare? If I do, does the government tell me? I used turbotax and it didn't tell me I owe more money. My medicare bill has not changed. What's up?

Don't worry, Medicare will send you a letter sometime in November telling you about your new (higher) premium for the next year, and if you passed the IRMAA threshold they'll include that information. If you file a joint return, you'll both get the IRMAA letter.

Note that even though they do a two-year lookback, it's 2 years from the UPCOMING year. IOW, they look at your return last year.

 

[Gotadimple]

What are the rules about keeping a a private BCBS policy for an extra year?
I think it would be a lot cheaper for her just to keep her existing policy than paying double for A & B.

First of all you have to call BCBS and ask. They may have exclusions once Medicare kicks in.
She has 7 months to enroll in Medicare. There are Q&As on the Medicare website here: https://www.medicare.gov/basics/get-started-with-medicare/sign-up/when-does-medicare-coverage-start

There may be late enrollment penalties. I encourage you to pencil this out, because late enrollment penalties never go away. IRMAA charges go away when income drops based on the look-back period.

 

[Midpack]

Oh, geez, by 2024 my wife will be on Medicare also.
Her premium will be higher also?


What are the rules about keeping a a private BCBS policy for an extra year?
I think it would be a lot cheaper for her just to keep her existing policy than paying double for A & B.

Yep.

I don't know if she can avoid IRMAA by delaying signing up for Medicare Part B/D - but might be valuable info for you and others. Good question. However, as the post above notes, there are penalties for delaying Medicare enrollment.

 

[Koolau]

Yep.

I don't know if she can avoid IRMAA by delaying signing up for Medicare Part B/D - but might be valuable info for you and others. Good question. However, as the post above notes, there are penalties for delaying Medicare enrollment.

Check all this out very carefully - officially. Mistakes can be costly.