When (in the year) is IRMAA recalculated?

[Philliefan33]

November 2018 is when DH starts Medicare. A couple of months ago, he got the letter telling him that he is subject to IRMAA based on our 2016 income. Thanks to what I learned on this forum, it was not a surprise to me. DH’s contracting gig was substantial in 2015-2016, raising our income significantly.

Our 2017 income was below the IRMAA threshold because DH did very little contracting. He filled out the SSA-44 to claim a life-changing event, but it was denied for lack of proof. Our 2017 1040 is not enough to prove that he is no longer working, we need either a letter from our accountant (that would be me) or a letter from the company he previously contracted with stating that they no longer contract with DH. Sort of annoying, because he contracted with multiple companies.

My question is: At what point of the calendar year does the automatic revisit of IRMAA happen? If the premiums for 2019 are recalculated in January 2019 using the 2017 tax return, our income will be below the threshold. If that’s the case, it’s not worth our time to try to produce proof of a LCE. Ww will pay the IRMAA for Nov/Dec 2018 and be done with it.

If, however, the IRMAA will not be revisited until November 2019, I’m going to find some way to prove that DH is no longer working.

 

[braumeister]

I think they're looking at it now. You should get a letter in late November telling you that the IRMAA will be dropped for 2019 based on your lower 2017 income. I may be wrong, but that's the way it has worked for me.

 

[Philliefan33]

Thank you. Once we pay for the two months in 2018, we should be free of IRMAA for a few years until my income streams kick in and DH has to start RMDs.

 

[Marc]

A follow-up IRMAA question. My birthday is also in November so glad to hear that I may have to pay higher premium for two months then lower when using next year's income. My question regards indexing of the 170,000 (MFJ) value; will it be indexed and, if so, when will indexing start? I will start Medicare in 2022 (based on 2020 income) but more concerned about 2023 (based on 2021 income) as that is year we will both be on Medicare. 2020 income will be above 170K but I am hoping the IRMAA amount will be higher in 2021 so that I don't have to worry about it.

thanks,

Marc

 

[MBSC]

My question regards indexing of the 170,000 (MFJ) value; will it be indexed and, if so, when will indexing start?

The IRMAA thresholds will increase by about 2% in 2020 and will be indexed to inflation after that.

The income thresholds that determine the income-related premium payments are frozen through 2019, but will increase by about 2 percent in 2020 and will be indexed after that for general price inflation.

Reference: https://www.kff.org/medicare/issue-...miums-under-current-law-and-proposed-changes/