If you’ve received an IRMAA (Income-Related Monthly Adjustment Amount) notice, the chances are good that you want to understand the IRMAA appeal process. Since the Social Security Administration uses your income from two years ago to determine this year’s Part B premium, your income may have changed since then (lower) and you might have a legitimate reason to appeal.
What are legitimate reasons for appealing IRMAA?
There are a number of reasons you might appeal IRMAA because of what Social Security calls a Life-Changing Event.The most common reason – you’ve stopped working and your monthly income is quite a bit less than it was when you were working.For example, let’s say your income was $98,000 when you retired in 2021 (the year Social Security used to determine your 2023 IRMAA). But after retiring, your income dropped in 2022 to around $42,000 from Social Security and a pension you receive. Paying the premium quoted in your IRMAA notice, which is $65.90 per month higher than you thought it would be, can be appealed since your income now is below the IIRMAA threshold of $97,000.
A drop in income is not the only reason for your Part B premium to increase. Other reasons for an IRMAA appeal may include:
Marriage
Divorce
Being Widowed
Changes or termination of pension
Receipt off a settlement from an employer due to company closure or bankruptcy
Loss of income-producing property
You might also decide to file an IRMAA appeal because you don’t believe the numbers the IRS reported to Social Security are accurate. It that happens to be the case, you have to contact the IRS and correct those numbers before you appeal. Filing an amended tax return might be necessary.
Starting and finishing the IRMAA appeal process
To start the IRMAA appeal process, you’ll begin by printing out IRS Form SSA-44. This form is called the “Medicare Income-Related Monthly Adjustment Amount Life-Changing Event. You’ll send this to the IIRS along with a cover letter explaining why your believe your’e being overcharged for your Part B premium.
Any additional information you can include will be very helpful. For example, if your income is now lower because you retired, include a letter from your former employer confirming you’ve retired, which includes your retirement date.
Other supporting documents to prove loss of income are bank statements, a pension termination letter, or other financial statements.
After sending off Form SSA-44 and your supporting documents, you’ll have to sit back and wait for Social Security’s response.
What are your chances your Part B premium will be lowered because of your IRMAA appeal?
If your reason for the appeal is valid and your paperwork has been complete, there’s no reason to think the IRMAA appeal process won’t work for you. But, be patient. The Social Security Administration, like the IRS, is not know for their speedy communications.
If it’s been at least two months since you appealed and you haven’t heard anything, don’t hesitate to pick up the phone and call them. You’ll probably be on hold for awhile, but it may be worth the wait.
The people who handle the appeals have mounds of paperwork in front of them, and they want to get yours completed as soon as possible. They also want to do the right thing.
