Has Your Income Gone Down

If you are enrolled in Medicare Part B, you are probably aware in 2008 premiums were adjusted based on your income.

Medicare generally uses your most recent tax return that you have filed with the Internal Revenue Service (IRS).  If you are enrolling during 2009, they will use your 2008 return and sometimes they can provide information to SSA using your 2007 return.  Once SSA receives this information, they send you a letter with an explanation of your new premium.

What Does MAGI Mean

Our government is famous for using acronyms and they refer to your income as a MAGI, and this means Modified Adjusted Gross Income.

What to Do if Your Income has Gone Down?

Medicare will reduce your Part B premium if your income has gone down.  You need to submit a request to SSA so they can determine your new premium.  If any of the following circumstances have happened in your life, then submit the form. The following circumstances are considered life changing by SSA.

• You married
• You divorced or your marriage was annulled
• You became a widow/widower
• You or your spouse stopped working or reduced work hours
• You or your spouse lost income from income-producing property due to a disaster or other even beyond your control
• You or your spouse’s benefits from an insured pension plan stopped or were reduced.

The form can be filled out and saved to your computer.  Once you have completed the form, SEND OR BRING THE COMPLETED FORM TO YOUR LOCAL SOCIAL SECURITY OFFICE.

Not sure where your local office is located?  You can find the office using your zip code from the SSA website at http://www.socialsecurity.gov.

The office is also listed under U.S. Government agencies in your telephone directory or you may call Social Security at 1-800-772-1213 (TTY 1-800-325-0778).

Do you have any tips to share?  Leave a comment below and be sure to sign up for our RSS Feed.