The letter is from Social Security. A caller who wants a gift card is not.
A letter arrives and the number on it is higher than the premium you remember. The name for the extra amount is IRMAA, the income-related monthly adjustment. It can raise what you pay for Medicare Part B, and it can raise what you pay for a Part D drug plan. Social Security figures it from the tax return of two years ago, not from the month you are standing in.
Read the return address first
Open the envelope. The return address is the first thing to check. The letter states the amount and how they got there. A newsletter cannot see your return, and it should not guess the bracket. The numbers that matter are the ones printed on your letter, and the explanation on the Social Security page linked below.
Income changes. Stopping work changes it. A marriage, a divorce, or the death of a spouse can change it. Social Security has a form for a life-changing event, SSA-44. The form lists what counts. Do not invent an event to fit a box, and do not pay a service that promises to “lower your IRMAA” if the next sentence asks for a gift card or your Medicare number.
If the tax figure itself looks wrong
The letter explains how to ask for another look. Take it to the person who prepares your taxes, or call Social Security from a number you looked up yourself. This page is not tax advice. The form and the letter outrank a morning paper.
Anyone who calls to fix your premium, and who wants payment by gift card, wire, or a code from a text, is not from Social Security. Hang up. The document is the letter in the mailbox. The call is the problem. The piece in this issue on callers who use Medicare’s name is the rest of that habit.
Sources to read yourself
- Social Security Administration, Lower your IRMAA
- Medicare, Medicare costs
- Form SSA-44, Medicare Income-Related Monthly Adjustment Amount
A note from the desk
This is general education, not tax, legal, or investment advice. Rules change, and your plan document controls your account. Before you move money, ask the plan administrator or a tax professional.