How to Request a Reduction in Your Medicare IRMAA Due to Life-Changing Events

If a Medicare customer is charged more due to the Income-Related Monthly Adjustment Amount (IRMAA), there are specific life-changing events that can be used to request a reduction or removal of this surcharge. These events include:

  1. Marriage: You got married and your combined income has significantly decreased.

  2. Divorce or Annulment: You got divorced or your marriage was annulled, leading to a decrease in your income.

  3. Death of a Spouse: Your spouse passed away, which reduced your income.

  4. Work Stoppage or Reduction: You or your spouse stopped working or had a significant reduction in work hours, leading to a lower income.

  5. Loss of Income-Producing Property: You experienced a loss of income-producing property due to a disaster or other event beyond your control.

  6. Loss of Pension Income: You or your spouse experienced a loss of pension income.

  7. Employer Settlement Payment: You or your spouse received a settlement payment from an employer or former employer due to the employer's bankruptcy or reorganization.

To request a reduction or removal of the IRMAA surcharge, you need to fill out and submit Form SSA-44, "Medicare Income-Related Monthly Adjustment Amount - Life-Changing Event." This form allows you to explain your life-changing event and provide documentation to support your request.

Would you like more details on how to fill out and submit Form SSA-44? Feel free to reach out to our office at 805 837 0175. 

Income-Related Monthly Adjustment Amount (IRMAA)

The Income-Related Monthly Adjustment Amount (IRMAA) is an additional charge added to your Medicare Part B and Part D premiums if your income exceeds a certain threshold. This means that higher-income individuals pay more for their Medicare coverage than those with lower incomes. The Social Security Administration (SSA) determines whether you owe IRMAA based on your Modified Adjusted Gross Income (MAGI) from two years prior, as reported on your IRS tax return.

The thresholds and additional charges are adjusted annually. As of 2024, for example, individuals with a MAGI above $97,000 (or $194,000 for married couples filing jointly) will pay an IRMAA in addition to the standard Medicare Part B premium.

Here is a simplified overview of how it works:

  1. Income Assessment: The SSA uses your MAGI from two years prior to assess your income. For example, in 2024, they will look at your 2022 income tax return.

  2. Income Brackets: If your income exceeds the established thresholds, you'll be placed into one of several higher income brackets, each with an increasing IRMAA surcharge.

  3. Premium Adjustment: Your Medicare Part B and Part D premiums are adjusted based on your income bracket, resulting in higher monthly premiums if your income is above the threshold.

Example Scenario:

  • If your 2022 MAGI was $120,000 (as a single filer), you'll fall into a specific income bracket for 2024, and your Part B premium will include an IRMAA surcharge in addition to the standard premium.

The primary purpose of IRMAA is to ensure that those who have a higher income contribute more towards the cost of their Medicare benefits.

How do HSA's work?

How do HSA’s work?

Health Savings Accounts (HSAs) are tax-advantaged accounts designed to help individuals with high-deductible health plans (HDHPs) save for qualified medical expenses. Here's how HSAs generally work:

Eligibility: To open and contribute to an HSA, you must be enrolled in a high-deductible health plan (HDHP). HDHPs have specific deductible and out-of-pocket expense limits set by the IRS.

Contribution: You and/or your employer can contribute money to your HSA up to the annual limit set by the IRS. Contributions are tax-deductible, meaning they can be deducted from your taxable income.

Tax Advantages: Contributions to your HSA are tax-deductible, and any interest or investment earnings within the account are tax-free. Additionally, qualified withdrawals for eligible medical expenses are tax-free.

Withdrawals: You can use the funds in your HSA to pay for qualified medical expenses, including deductibles, copayments, prescriptions, and certain other healthcare costs. It's essential to keep receipts and documentation for these expenses.

Portability: Unlike flexible spending accounts (FSAs), HSAs are portable. This means you own the account, and it remains with you even if you change jobs or health insurance plans.

Investment Options: Some HSAs allow you to invest the funds in the account, potentially allowing for growth over time. However, not all HSAs offer investment options, and it depends on the provider.

Age 65 and Over: Once you reach age 65, you can withdraw funds from your HSA for non-medical expenses without a penalty. However, if not used for qualified medical expenses, these withdrawals are subject to income tax.

It's crucial to be aware of the specific rules and regulations surrounding HSAs, as they can change, and individual circumstances may vary. Consult with a member on our team for personalized advice based on your situation.

Home Insurance

 What does homeowners insurance not cover?

Homeowners insurance usually doesn't cover certain types of events or situations. Common exclusions may include:

Floods: Homeowners insurance typically doesn't cover damage caused by floods. You may need a separate flood insurance policy.

Earthquakes: Similar to floods, earthquakes are often not covered by standard homeowners insurance. You might need a separate earthquake insurance policy.

Routine Maintenance: Regular wear and tear or maintenance issues are usually not covered. Homeowners are responsible for maintaining their property.

Sewer Backup: Damages resulting from sewer backups may not be covered, or coverage might be limited. You may need to purchase additional coverage for this.

Mold: Mold damage may not be covered, especially if it's due to prolonged neglect or poor maintenance.

Termite Damage: Damage caused by pests like termites is often considered a result of poor maintenance and is typically not covered.

Nuclear Hazard: Damage from nuclear events or war is usually excluded.

It's essential to carefully review your policy and discuss specific coverage needs with your insurance provider to understand the limitations and exclusions in your homeowners insurance policy.

Auto Insurance

Auto insurance typically does not cover the theft of personal property like a computer from your car. Auto insurance primarily covers damage to your vehicle and liability in case of accidents. If you want coverage for personal belongings stolen from your car, you would need to look into renters or homeowners insurance, which may offer coverage for personal property even if it's stolen from your vehicle. It's important to check your specific insurance policy to understand what is covered.