If you are what Social Security considers a “higher-income beneficiary,” you pay more for Medicare Part B, the health insurance portion of Medicare, and Part D, prescription drug coverage. The Social Security Administration (SSA) uses the most recent Federal tax return provided by the IRS to make this determination, but that might reflect your income from two years prior. If you have experienced a life-changing event that has caused an income decrease, you can request that Social Security revisit its decision.
“Life-Changing Events” include:
- You married, divorced or became widowed;
- You or your spouse stopped working or reduced your work hours;
- You or your spouse lost income-producing property because of a disaster or other event beyond your control;
- You or your spouse experienced a scheduled cessation, termination or reorganization of an employer’s pension plan; or
- You or your spouse received a settlement from an employer or former employer because of the employer’s closure, bankruptcy or reorganization.
To request a reduction of your Medicare premium you will need to file Form SSA-44, “Medicare Income-Related Monthly Adjustment Amount – Life Changing Event,” and include a copy of your most recent tax return and evidence of the life-changing event. Acceptable documentation is notated on the form.
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