Why is my $0 premium Medicare plan costing $670 a month?
Dear Toni: I enrolled in a $0 premium Medicare Advantage plan to begin April 1 when I turn 65. I chose to disenroll from my husband’s employer benefits because my monthly premium is $0, making it more cost-effective for us.
Now I am in shock because a Medicare premium of $670.50 was deducted from my Social Security check. I was told by the agent who enrolled me in the Advantage plan that my premium would be $0.
My husband, John, is 63 and wants to continue working until he is 70. I may have made a mistake by enrolling in this Medicare Advantage plan and leaving his employer plan. I cannot return to his plan until January. Can you please explain what I did wrong? — Susan, Atlanta
Dear Susan: You have been introduced to MAGI (modified adjusted gross income), which determines your yearly income bracket, and IRMAA (income-related monthly adjusted amount), which governs what your monthly premium will be.
Basically, it works like this: The IRS informs Social Security that your and John’s income from your last filed tax return was $400,000 to $750,000, and Social Security deducts the $670.50 from your monthly check for your Medicare premium. (The premium for your Medicare Advantage plan is still $0. That has not changed.)
In 2025, if your tax return income was $106,000 or less for an individual or $212,000 or less for a joint filer, the Medicare Part B premium would be $185 monthly, without IRMAA added. People whose income is higher than those thresholds will pay a higher amount with the IRMAA added to your monthly premium.
Social Security explains in the letter that was mailed to you how it arrived at the Part B and D premiums based on your MAGI and that you will have the IRMAA premium added.
Medicare confusion begins when one approaches 65 and is bombarded by call centers and mountains of mail advertising. Realize this: The person on the other side of the call is only looking to make a sale and not always providing proper information.
When John retires, he will have a special situation known as a “life-changing event,” which can lower your IRMAA premium. A few of the life-changing events that can make your MAGI go down are:
■ Married, divorced or your spouse has died.
■ You or your spouse have stopped working or reduced hours.
■ Loss of income-producing property.
■ Loss of pension income.
Use form SSA-44 (Medicare IRMAA-Life-changing Event) to advise Social Security of your change in income. You can download the form at ssa.gov.
Toni King is an author and columnist on Medicare and health insurance issues. If you have a Medicare question, email info@tonisays.com or call 832-519-8664.
