AKB: Medicare IRMAA Fees

[LionJim]

I retired in December 2020 and got some severance pay in January 2021; this bumped up my earnings for 2021. I started Medicare last year, midyear 2022, a year and a half after the severance payment. Because of the severance, I'm paying ungodly IRMAA Medicare fees that I expect will go back down come January 2024. Now that I've filed our 2022 taxes (no severance there, just retirement), I'm wondering if I can make a case for getting the IRMAA fees cut immediately. Thanks in advance, AKB.

 

[hecklar]

I retired in December 2020 and got some severance pay in January 2021; this bumped up my earnings for 2021. I started Medicare last year, midyear 2022, a year and a half after the severance payment. Because of the severance, I'm paying ungodly IRMAA Medicare fees that I expect will go back down come January 2024. Now that I've filed our 2022 taxes (no severance there, just retirement), I'm wondering if I can make a case for getting the IRMAA fees cut immediately. Thanks in advance, AKB.

Generally CMS will re-evaluate your IRMAA standing on a yearly basis. IIRC they use the tax return from two years prior, so it sounds like your IRMAA will either decrease or drop off. It should happen automatically, but it can't hurt to call them and open a case if you don't see it happen right away. LMK if you have other questions, I deal with CMS and Med D a lot. Cheers.

 

[s1uggo72]

I retired in December 2020 and got some severance pay in January 2021; this bumped up my earnings for 2021. I started Medicare last year, midyear 2022, a year and a half after the severance payment. Because of the severance, I'm paying ungodly IRMAA Medicare fees that I expect will go back down come January 2024. Now that I've filed our 2022 taxes (no severance there, just retirement), I'm wondering if I can make a case for getting the IRMAA fees cut immediately. Thanks in advance, AKB.

You fat cats need to pay your fair share

 

[LionJim]

I retired in December 2020 and got some severance pay in January 2021; this bumped up my earnings for 2021. I started Medicare last year, midyear 2022, a year and a half after the severance payment. Because of the severance, I'm paying ungodly IRMAA Medicare fees that I expect will go back down come January 2024. Now that I've filed our 2022 taxes (no severance there, just retirement), I'm wondering if I can make a case for getting the IRMAA fees cut immediately. Thanks in advance, AKB.

I did a little more research: it looks as if the answer to this is a big No. Ah, well.

 

[hecklar]

I did a little more research: it looks as if the answer to this is a big No. Ah, well.

I'm 99% sure that IRMAA changes yearly (my business is Medicare) so if your tax returns reflect less income it should adjust or drop off. I've been wrong before, but pretty sure I'm not on this one

For context: I manage about 5B in large Medicare health plans and deal w this stuff daily. Cheers!!

 

[LionJim]

I'm 99% sure that IRMAA changes yearly (my business is Medicare) so if your tax returns reflect less income it should adjust or drop off. I've been wrong before, but pretty sure I'm not on this one

For context: I manage about 5B in large Medicare health plans and deal w this stuff daily. Cheers!!

Yes, I do expect that the IRMAA will be reduced come January. I was wondering if I could get the IRMAA reduced right now, looks like I can’t.

 

[BVSt.Paul]

I retired in December 2020 and got some severance pay in January 2021; this bumped up my earnings for 2021. I started Medicare last year, midyear 2022, a year and a half after the severance payment. Because of the severance, I'm paying ungodly IRMAA Medicare fees that I expect will go back down come January 2024. Now that I've filed our 2022 taxes (no severance there, just retirement), I'm wondering if I can make a case for getting the IRMAA fees cut immediately. Thanks in advance, AKB.

Jim - the exact situation happened to us. I got severance from my former employer in 2020. so they bumped up my wife’s IRMAA in 22 AND 23. I’m not yet on Medicare. Next month. Anyway, we filed an appeal this past November showing this was a one time payment. Also included our 22 return and other supporting info. The finally reduced it and paid us the overage. There is an appeals process. Good luck.

 

[bdgan]

I retired in December 2020 and got some severance pay in January 2021; this bumped up my earnings for 2021. I started Medicare last year, midyear 2022, a year and a half after the severance payment. Because of the severance, I'm paying ungodly IRMAA Medicare fees that I expect will go back down come January 2024. Now that I've filed our 2022 taxes (no severance there, just retirement), I'm wondering if I can make a case for getting the IRMAA fees cut immediately. Thanks in advance, AKB.

1. IRMAA Sucks
2. It's adjusted yearly
3. IRMAA will hit me harder once I start collecting SS AND start taking RMDs from my IRA.

 

[4theglory54]

Hope this helps. IRMAA is determined by your tax return filed the previous year, which pertains to the year before that. If you received the severance pay in 2021, it would be included in the income you receive for 2021, which you would file in April 2022. The IRMAA for 2023 would then look to the filing from 2022 to compute withholdings.