Question: I was told my Medicare Part B would cost $174.70, but my premium is much higher than that. Why?

Answer: The Medicare Part B premium for most Americans in 2024 is $174.70. There are some that find they pay more than that and this can be for two reasons.

One is that they enrolled in Medicare Part B late and have an enrollment penalty of 10% for each year they did not enroll. This penalty will continue to be an additional premium added to the monthly premium for the rest of your life. The only way to erase the Late Enrollment Penalty is by applying for and receiving Medicaid benefits.

The other reason individuals pay a higher Medicare Part B premium is because they have a high income. Your monthly Part B premium will be higher if your individual tax return shows your annual income is more than $103,000, or if you are married (file a joint tax return) and your annual income is more than $206,000.

Social Security will use the income reported two years ago on your IRS income tax return to determine your current premium. This means the income reported on your 2022 tax return will be used to determine your monthly Part B premium in 2024.

The chart below shows the Part B monthly premium amounts based on income for 2022.

See attached charts.

The charts and answers to this question come directly from www.ssa.gov and www.medicare.gov. These websites provide abundant information and answers to many of your Medicare Questions. You can also call Medicare to ask questions at 1-800-medicare.

Your Medicare Part B premium is usually paid through your Social Security Benefit, having the premium deducted before your check is deposited in the bank. For those individuals who are still working or don’t collect Social Security, you will receive a bill in the mail for your Medicare Part B premium. This premium bill is sent quarterly from Centers for Medicare Services (CMS). Once you receive this bill you can set up an automatic payment from your bank account or even a credit card. Once you file for Social Security benefits your Part B premium will be deducted from your monthly benefit, and you will no longer receive the quarterly bill.

If your income has decreased since 2022, you can ask that the income from a more recent tax year be used to determine your premium, but you must meet certain criteria. There are 8 reasons that allow you to request a reduction of your IRMAA. The following list includes the life changing events that qualify for this adjustment, Marriage, Divorce/Annulment, Death of a Spouse, Work Stoppage, Work Reduction, Loss of Income-Producing Property, Loss of Pension Income, or Employer Settlement Payment. These eight qualifying Life Events allow you to request an adjustment to your IRMAA and potentially reduce your Part B premium amount. The form used to report this information is called an SSA-44 and can be requested from SSA office or found online at SSA.gov and printed by you.

It is my hope that you are paying a higher Medicare Part B premium due to an IRMAA, not a late enrollment penalty. I say that because having a higher income means you have worked hard during your lifetime and are receiving your just rewards for that work.

Janell Sluga is a Geriatric Care Manager helping seniors in our community access services and insurance. To reach her, please email editorial@post-journal.com.