Retirement planning for Medicare costs

[SumDay]

Since it starts when you turn 65, 1st day of the month IIRC of your bday, if you’re bday is April or later, you could use previous year instead going back 2 years, or will they not accept your copy of tax return as proof and need IRS computers to give them information?

I printed this off long ago, just in case: https://www.ssa.gov/forms/ssa-44.pdf

 

[wmc1000]

It is my understanding that SS calculates the IRMAA payment required, not the taxpayer.

https://secure.ssa.gov/poms.nsf/lnx/0601101031

 

[Bluwtrguy]

If your income is high enough to place your premiums in a higher category and then going forward you would qualify for lower premiums, is an adjustment made, or are you stuck for life with the higher premiums? With me working the first 3 months and getting paid for vacation and incentive plan payouts, I will have a lot of income the year I am 62. Much less going forward.

 

[MichaelB]

If your income is high enough to place your premiums in a higher category and then going forward you would qualify for lower premiums, is an adjustment made, or are you stuck for life with the higher premiums? With me working the first 3 months and getting paid for vacation and incentive plan payouts, I will have a lot of income the year I am 62. Much less going forward.

They recalculate every year, so if your income falls below the IRMAA threshold, you will pay the lower premium.

 

[braumeister]

They recalculate every year, so if your income falls below the IRMAA threshold, you will pay the lower premium.

Which was a huge relief to me a couple of years ago!

 

[Gunny]

My wife and I will both transition to MEDICARE and Tricare for Life in ten years. Does anyone have this type of plan? I'm interested to know what to expect in terms of costs and available/allowed care by such a plan.

 

[braumeister]

My wife and I will both transition to MEDICARE and Tricare for Life in ten years. Does anyone have this type of plan? I'm interested to know what to expect in terms of costs and available/allowed care by such a plan.

Quite a few of us have exactly that. Who knows what changes will happen in the next ten years? That's a long time. As of today, you pay the going rate for Medicare Part B, but beyond that it will cost you very little. Generally a small copay for prescriptions, but that's usually all. You can see any doctor who accepts Medicare, which is the vast majority of them.

The only significant out of pocket cost for us was implanted lenses for cataract surgery. Mine cost nothing because they were standard. But DW had a high degree of astigmatism and needed toric lenses which cost $1,600 each.

Apart from that, our total cost has generally been less than $100 a year (after paying Part B).

 

[Gunny]

Quite a few of us have exactly that. Who knows what changes will happen in the next ten years? That's a long time. As of today, you pay the going rate for Medicare Part B, but beyond that it will cost you very little. Generally a small copay for prescriptions, but that's usually all. You can see any doctor who accepts Medicare, which is the vast majority of them.

The only significant out of pocket cost for us was implanted lenses for cataract surgery. Mine cost nothing because they were standard. But DW had a high degree of astigmatism and needed toric lenses which cost $1,600 each.

Apart from that, our total cost has generally been less than $100 a year (after paying Part B).

Thanks for the response. Looks like a manageable expense if congress does not make drastic changes to the plan.