However, this cost is based off of your income tax return from the previous year. Medicare beneficiaries with income over $88,000 for an individual or $176,000 for a couple are charged a higher Medicare Part B premium that can be well over $300/month.
The higher premium amount is based on income reported to the IRS from the most recent tax information the IRS has. The higher premium is called Income-Related Monthly Adjusted Amount, or IRMAA.
But your income for 2021 may be much lower than your income was in 2019, for instance if you just retired or maybe a spouse passed away.
So what can you do? If you have to pay an IRMAA the Social Security Administration should send you a letter telling you the extra premium amount. The notice from SSA will explain that you can request a new initial determination based on a life-changing event such as retiring or losing a spouse. You can file a life-changing event form that explains why you think SSA used incorrect information. You should include an amended tax return or proof that you experienced a life changing event. You can get a copy of the SSA form at www.ssa.gov/forms/ssa-44-ext.pdf.
You can also file an appeal, or reconsideration, with SSA, instead of requesting a new initial determination. You would have to get in touch with SSA to get a reconsideration form. There is no set time frame by which SSA has to respond to your request for a reconsideration If the reconsideration is denied, you then can appeal.