Ask Larry

I will turn 65 this month and am now on Medicare. Since my Medicare Part B premiums (medical and prescription drugs) are deducted from my monthly Social Security benefit, my monthly benefit has now decreased due to the $144.60 being deducted for my Part B.

I was recently informed that due to my income in 2018, an additional $70 ($57.80 medical plus $12.20 prescription) would be deducted from my monthly SS benefit due to my income in 2018. My father passed away that year and my income increased due to an inheritance I received. Based on my 2018 income, I now am paying a higher Part B premium. However, if I had received the inheritance in 2017, I would never have been affected by this.

I sent a form to appeal this, but was told there is nothing they can do about it because my medicare premium is based on my income from 2018. Also, I was told that every year, SS looks at all SS recipients' income from two years back and that I will no longer be penalized for my larger income in 2018 due to my inheritance.

Is that correct? Will my benefit be increased by $70 based on my 2019 income after a year of paying a higher premium?

Thank you.

HI,

Yes, what you were told is basically correct (https://www.cms.gov/newsroom/fact-sheets/2020-medicare-parts-b-premiums-and-deductibles). If the increase in your modified adjusted gross income (MAGI) was just a one year event, then your Part B premium rate will likely drop back down to the standard level next year.

In some cases when a person's MAGI spikes due to a life changing event (https://secure.ssa.gov/apps10/poms.nsf/lnx/0601120005#c), it's possible to have Social Security use a more recent tax year on which to base your Medicare premium. It doesn't sound like your income change resulted from what Social Security would define as a lifechanging event, though.

Best, Jerry