Ask Kim
Pay Less for Medicare Part B
You might be able to lower your premiums if your income has dropped because of a "life-changing event."
By Kimberly Lankford, Contributing Editor, Kiplinger's Personal Finance
December 17, 2009
My wife and I pay a high-income surcharge for our Medicare Part B premiums based on our income from more than a year ago. But we’ve since retired, and our combined incomes are now less than $30,000. Can we get these premiums reduced?
Yes. The high-income surcharge for Medicare Part B is based on your last tax return on record. So if your adjusted gross income was more than $170,000 on a joint return in 2008 (or more than $85,000 if single), you and your spouse may both have to pay $154.70 (or more) per month for Medicare Part B in 2010. See What’s in Store for Medicare Part B Premiums for details.
But you can get your premiums reduced if your income has dropped since then because of a “life-changing event.” That includes marriage, divorce, job loss or reduced work hours (including retirement), loss of income from income-producing property or cuts in pension benefits. Because your joint income is now $30,000, you should each end up paying the standard $96.40 per month.
Fill out the Medicare Part B Income-Related Premium – Life Changing Event form. You’ll need to estimate your income for the year and provide evidence of the change, which could include a statement from your former employer verifying that you’ve retired.
Got a question? E-mail me at askkim@kiplinger.com.
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Reader Comments (1)
Posted by: Todd at 12/18/2009 04:23:34 PM
I beleive I read your 12/2009 article about SBA Loan Gaurantees. You mentioned that "The interest rate may not exceed 2.25 points over the prime rate for loans less than 7 years, or 2.75 points over prime for loans of seven years and longer." I have recently been approved for an SBA loan but the bank is telling me the SBA loans are now based on the LIBOR (1 month) rate plus 3 points. They are then adding another 2.75. (5.98%) They are also saying this is a variable rate that changes month to month. Today's LIBOR rate is outstanding but it has been as high as 9 only a few years back and has increased as much as 4 points in a year. Can you shed some light on this? I would hate to end up with a 14% interest rate in a year or two on the offered 10 year term. What can I do? Thanks