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Today's milestone..just started Medicare!
Old 02-01-2021, 06:41 PM   #1
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Today's milestone..just started Medicare!

I turned 65 today and began medicare ( I am supposed to celebrate.....right?). However......it ain't as cheap as everyone has told me. I have part A and B and added Plan G (covers co pays etc) and a drug plan. Prior to all this I was on Blue Cross PPO that ran about $850 per month. So, I basically replaced that plan with the medicare I mentioned. Turns out the government took my 2019 income (had allot of deferred income) and placed me in a "high means adjusted" bracket. My new medicare plan is costing $711.00 per month. I had been hoping for something far more reasonable. Did I miss something in the medicare 101 class?
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Old 02-01-2021, 06:46 PM   #2
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No, you didn't. It's called IRMAA (Income Related Monthly Adjustment Amount ). But assuming the deferred income was a one-time thing and won't be repeated in tax years 2020 and forward, then your Medicare premium will drop down.
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Old 02-01-2021, 06:48 PM   #3
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Originally Posted by Franklin View Post
I turned 65 today and began medicare ( I am supposed to celebrate.....right?). However......it ain't as cheap as everyone has told me. I have part A and B and added Plan G (covers co pays etc) and a drug plan. Prior to all this I was on Blue Cross PPO that ran about $850 per month. So, I basically replaced that plan with the medicare I mentioned. Turns out the government took my 2019 income (had allot of deferred income) and placed me in a "high means adjusted" bracket. My new medicare plan is costing $711.00 per month. I had been hoping for something far more reasonable. Did I miss something in the medicare 101 class?
As to your first question: Yes, you are supposed to celebrate. Congratulations.

I am 10 years into Medicare and have classic Medicare from HHS, and a separate Medicare supplement policy from a separate insurer. So, I am not really into details of Medicare Advantage plan costs. I do know, I get to pay more for my classic Medicare because of "high income" and I always resent having to do that. But them's the rules.
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Old 02-01-2021, 06:52 PM   #4
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IRMAA brackets - 2021
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Old 02-01-2021, 06:53 PM   #5
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Does someone know for sure if the 709 gift exemption form can be filed electronically or does it have to be filed through the mail?
Think maybe you put your question on the wrong thread!

This is a Medicare premium new thread.

Maybe do a search for gift taxes or 709's to find someone who can respond knowledgably.
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Old 02-01-2021, 06:55 PM   #6
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Does someone know for sure if the 709 gift exemption form can be filed electronically or does it have to be filed through the mail?
Here is a 709 thread "might" have something relevent.

https://www.early-retirement.org/for...-a-106862.html
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Old 02-01-2021, 07:04 PM   #7
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As to your first question: Yes, you are supposed to celebrate. Congratulations.

I am 10 years into Medicare and have classic Medicare from HHS, and a separate Medicare supplement policy from a separate insurer. So, I am not really into details of Medicare Advantage plan costs. I do know, I get to pay more for my classic Medicare because of "high income" and I always resent having to do that. But them's the rules.
Thanks for that info. Just wanted to make sure I didn't screw this up. My deferred comp is gonna last a few years so it sounds like my benefit from medicare will be delayed. As you say.....them the rules.
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Old 02-01-2021, 07:11 PM   #8
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Thanks for that info. Just wanted to make sure I didn't screw this up. My deferred comp is gonna last a few years so it sounds like my benefit from medicare will be delayed. As you say.....them the rules.


You池e not alone. We both start in August. This year we値l have a slight IRMAA hit, but next year it値l be 3.2 times the normal cost since 2020 we had high income. After that it値l be more under our control, but we have to balance Roth conversions against IRMAA.
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Old 02-01-2021, 07:16 PM   #9
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Originally Posted by RetireeRobert View Post
As to your first question: Yes, you are supposed to celebrate. Congratulations.

I am 10 years into Medicare and have classic Medicare from HHS, and a separate Medicare supplement policy from a separate insurer. So, I am not really into details of Medicare Advantage plan costs. I do know, I get to pay more for my classic Medicare because of "high income" and I always resent having to do that. But them's the rules.
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Originally Posted by Dash man View Post
You池e not alone. We both start in August. This year we値l have a slight IRMAA hit, but next year it値l be 3.2 times the normal cost since 2020 we had high income. After that it値l be more under our control, but we have to balance Roth conversions against IRMAA.
Thanks, I guess misery loves company!! It does seem odd that when u finally get a "seniors benefit" the " means test " brings it back to reality. My MIL and FIL were bragging how medicare paid all their medical expenses and I chimed in and said the opposite.....they thought I was crazy!!
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Old 02-01-2021, 07:18 PM   #10
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I turned 65 today and began medicare ( I am supposed to celebrate.....right?). However......it ain't as cheap as everyone has told me. I have part A and B and added Plan G (covers co pays etc) and a drug plan. Prior to all this I was on Blue Cross PPO that ran about $850 per month. So, I basically replaced that plan with the medicare I mentioned. Turns out the government took my 2019 income (had allot of deferred income) and placed me in a "high means adjusted" bracket. My new medicare plan is costing $711.00 per month. I had been hoping for something far more reasonable. Did I miss something in the medicare 101 class?
Look at the bright side. You are still saving over $100 compared to your BC plan.

FWIW, we expect to hit IRMAA at RMD time (even with conversions). Don't like it, but it is what it is.
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Old 02-01-2021, 07:24 PM   #11
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Look at the bright side. You are still saving over $100 compared to your BC plan.

FWIW, we expect to hit IRMAA at RMD time (even with conversions). Don't like it, but it is what it is.
i agree, gotta look at the bright side. Just thought it was more than a hundred.
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Old 02-01-2021, 07:39 PM   #12
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Quote:
Originally Posted by Franklin View Post
I turned 65 today and began medicare ( I am supposed to celebrate.....right?). However......it ain't as cheap as everyone has told me. I have part A and B and added Plan G (covers co pays etc) and a drug plan. Prior to all this I was on Blue Cross PPO that ran about $850 per month. So, I basically replaced that plan with the medicare I mentioned. Turns out the government took my 2019 income (had allot of deferred income) and placed me in a "high means adjusted" bracket. My new medicare plan is costing $711.00 per month. I had been hoping for something far more reasonable. Did I miss something in the medicare 101 class?


Congratulations! But sorry you are not getting a bigger break on your premiums.

How do the deductibles compare? I was under the impression that Medicare deductibles are much smaller than affordable care act plans, especially HSA eligible plans.
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Old 02-01-2021, 07:43 PM   #13
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Does someone know for sure if the 709 gift exemption form can be filed electronically or does it have to be filed through the mail?
I think it has to me mailed in. I have mine ready to go.
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Old 02-01-2021, 08:00 PM   #14
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Sorry, I did mess up, I'm very sorry.

Thanks so much for your help on my question, very much appreciated once again.
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Old 02-01-2021, 08:03 PM   #15
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Sorry, I did mess up can one of the mods delete it.
If you look at the bottom right of your post, there is an "Edit" button. I think that button can also be used to "delete" one's own post, if so desired.

Hope you find your 709 answer somewhere!
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Old 02-01-2021, 08:08 PM   #16
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My new MA plan is costing me +1 IRMAA off SS plus fifteen bucks a month. Way cheaper than before.
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Old 02-02-2021, 03:37 PM   #17
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I turned 65 today and began medicare ( I am supposed to celebrate.....right?).
By all means celebrate, you have your official curmudgeon card!

You are also now eligible for all those senior discounts that you couldn't get before.
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