Social Security and their income rules concerning medicare part B

[gabster54]

SC
Hi, was hoping to get some information/advice? My husband and I retired from our Real estate investment company and sold the bulk of our real estate a year ago. We got a letter from social security this year saying that our gross income had changed significantly for that year and we would now have to pay the total amount of our part B for the next year. it is substantially higher every month than last year. I was hoping that there was something I can do as far as changing what they view as income? It is our retirement fund and it is not our income. thanks for any advice you can give.

 

[LdiJ]

SC
Hi, was hoping to get some information/advice? My husband and I retired from our Real estate investment company and sold the bulk of our real estate a year ago. We got a letter from social security this year saying that our gross income had changed significantly for that year and we would now have to pay the total amount of our part B for the next year. it is substantially higher every month than last year. I was hoping that there was something I can do as far as changing what they view as income? It is our retirement fund and it is not our income. thanks for any advice you can give.

Unfortunately no, there really isn't anything that you can do. The good news is that the medicare premiums will go back down when your official income goes back down to normal levels. You aren't the first people to deal with this and you won't be the last.

 

[adjusterjack]

I was hoping that there was something I can do as far as changing what they view as income?

I've been down that road. Income is income. You made it, you can't change it.

But here is something you might look into that might reduce your Part B premium.

A year ago I enrolled in a Medicare Advantage Plan. My Part B premium dropped from $185 per month to $90 per month and I pay nothing for the Medicare Advantage Plan.

I have no idea if that would help you. You'd have to find out from people far wiser than I.

 

[cbg]

Did you own the real estate company or just work there for someone else? I'm going somewhere specific with this.

 

[Bali Hai Again]

Paid $1,450 per 100k to Medicare when working and not using Medicare. Now pay $2094 to Medicare (2024).

Shouldn’t Medicare be free for retirees? Something wrong!

 

[adjusterjack]

Shouldn’t Medicare be free for retirees? Something wrong!

It is free for retires. Part A is free. Part B is sort of optional. You can opt out of Part B but if you ever want it later, it's gonna cost you.

You can find out all that by googling.

 

[LdiJ]

Paid $1,450 per 100k to Medicare when working and not using Medicare. Now pay $2094 to Medicare (2024).

Shouldn’t Medicare be free for retirees? Something wrong!

The actual Medicare Part B rate is about 7k a year. You only have to pay $2094.00 of that 7k. So, you are getting free Part A and highly subsidized Part B.

 

[Bali Hai Again]

The actual Medicare Part B rate is about 7k a year. You only have to pay $2094.00 of that 7k. So, you are getting free Part A and highly subsidized Part B.

Part A is only free if you don‘t use it. I feel better now knowing Part B is a good deal.

 

[bcr229]

Do a Google search on "Medicare IRMAA" and you'll see exactly why you're paying more now. My financial planner mentioned it when we discussed retirement planning and shutting down the small business that my husband and I have, as that year we will be over the threshold if I'm also still working my W2 job.

 

[cbg]

The IRMAA lookback period is 2 years, so at least it's not going to be an ongoing thing forever.

At the beginning of the pandemic, the university I work for had a Voluntary Early Retirement Incentive Program. One of the incentives in the package was a lump sum of one years' salary.

That lump sum brought some of our accepting retirees into the income bracket for the year which required them to pay IRMAA charges. On talking to their local Medicare offices, some of them were able to have the IRMAA charges waived on receipt of a written statement from us that the money in question was a retirement incentive and not salary per se. That's why I'm asking if the OP owned the investment company. If not, if they only sold the real estate on retirement and they had owned it through the investment company, it is possible (I do not say it is a guarantee; I say it is something to investigate) be able to negotiate something similar. If they owned the company, though, I doubt they'd have any success.

 

[Bali Hai Again]

Do a Google search on "Medicare IRMAA" and you'll see exactly why you're paying more now. My financial planner mentioned it when we discussed retirement planning and shutting down the small business that my husband and I have, as that year we will be over the threshold if I'm also still working my W2 job.

Do a Google search on “RICO Act”. It’s legal in the medical profession and medical insurance.

 

[gabster54]

I've been down that road. Income is income. You made it, you can't change it.

But here is something you might look into that might reduce your Part B premium.

A year ago I enrolled in a Medicare Advantage Plan. My Part B premium dropped from $185 per month to $90 per month and I pay nothing for the Medicare Advantage Plan.

I have no idea if that would help you. You'd have to find out from people far wiser than I.

ty for the advice

 

[gabster54]

Did you own the real estate company or just work there for someone else? I'm going somewhere specific with this.

my husband and I own the company.

 

[cbg]

Then what I was thinking of is unlikely to do you any good. But it can't do any harm to contact Medicare, explain the situation, and see if there is any option to waive the IRMAA charges. They may. They may not. You won't know until you try.

But in either case, it should only be for two years.

 

[gabster54]

Then what I was thinking of is unlikely to do you any good. But it can't do any harm to contact Medicare, explain the situation, and see if there is any option to waive the IRMAA charges. They may. They may not. You won't know until you try.

But in either case, it should only be for two years.

thank you, I will do that.