Premiums

  • Tag : Premiums

Medicare Premiums for High Income Households

by Kristin P. Sinclair – A Accu Tax – December 1, 2017

If your household includes high income wage-earner(s) then your Medicare Premiums could also include Income Related Monthly Adjustment Amounts (IRMAA). Qualifying high-income also includes Interest, Dividends, or Capital Gains and other forms of ordinary income as well. These additional premiums are based upon your income from the two prior tax years.

If you have questions about your Part A or Part B bill amount or Part A or Part B insurance, then call Social Security at 1-800-772-1213. You can also write or visit any Social Security office. TTY users should call 1-800-325-0778.

  1. If you have questions about your IRMAA Part D bill amount, call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.
  2. If you need help paying your Medicare costs, call or visit your State Medical Assistance (Medicaid) office, and ask for information on Medicare Savings Programs. You can also contact your State Health Insurance Assistance Program (SHIP). To get the phone numbers for your state, visit Medicare.gov/contacts, or call 1-800-MEDICARE.
  3. For more information about this bill, visit Medicare.gov and type “CMS-500” in the Search box. • CMS does not discriminate in its programs and activities. To request this publication in an alternate format, please call 1-800-MEDICARE or e-mail AltFormatRequest@cms.hhs.gov. TTY users should call 1-877-486-2048.

What if I don’t pay my Part A or Part B premium?

You’ll lose your coverage, and you must still pay the total premium amount you owe. You can only reapply for Medicare during the General Enrollment Period from January 1 through March 31 each year. If you reapply, your coverage will start on July 1 of that year, and you may have to pay a higher monthly premium amount for Part A as well as a lifetime late enrollment penalty for Part B.

What is IRMAA and why do I pay for it?

This charge may include an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra amount you must pay for Part B and Part D coverage because you have a higher income. If you have IRMAA Part D, then you are billed monthly and it is included in this bill. Your Part D plan premium is different, and you must pay the plan premiums to your Medicare drug plan. If you have IRMAA for Part B, it is included in your Part B premium amount. Your IRMAA can change each year. For more information about IRMAA, visit www.SocialSecurity.gov. What if I don’t pay my IRMAA Part D amount? You’ll lose your Part D coverage, even if it is part of your Medicare Advantage plan (like an HMO or PPO) or employer coverage. If you sign-up for Part D later, then you will still have to pay any IRMAA for Part D you owe from prior years. You may also have to pay a monthly penalty for as long as you have Part D coverage.

If Medicare is billing you additional premium for your Medicare Part B or your Medicare Part D, then a good reference tool to use to understand these extra premium charges are CMS-500 Form.

UNDERSTANDING THE “MEDICARE PREMIUM BILL” FORM (CMS-500) can be found on the website: www.Medicare.gov

Updated by Kristin P. Sinclair: A Accu Tax

in Charleston SC and Rock Hill SC

December 1, 2017 (803)329-0615

,