You recently retired. You no longer have a paycheck. You expect your Medicare Part B premium to be the standard amount (approx. $185 in 2025/2026).
But when you open the letter from Social Security, you are shocked. They want $594 per month.
"Why am I being punished?" you ask. "I don't have that kind of money anymore!"
You have been hit by IRMAA (Income-Related Monthly Adjustment Amount). The government thinks you are still rich because they are looking at your tax return from two years ago.
The good news? You can fix this mistake and lower your premium immediately using one simple form.
Disclaimer: IRMAA brackets change annually. Appeals are subject to Social Security Administration (SSA) approval. Consult a financial advisor.
How Form SSA-44 Can Save You Thousands
1. What Is IRMAA? (The "Rich Tax")
Medicare Part B and Part D are not one-price-fits-all. If your Modified Adjusted Gross Income (MAGI) exceeds certain thresholds (e.g., ~$106,000 for individuals, ~$212,000 for couples), you pay a surcharge.
- Standard Premium: ~$185/month
- Highest IRMAA Premium: ~$600+/month
That is an extra $5,000 per year out of your Social Security check!
2. The "2-Year Lookback" Trap
Here is the problem. In 2026, Social Security determines your premium based on your 2024 Tax Return.
- 2024 Status: You were working, earning $200,000. (High Income).
- 2026 Status: You are retired, earning $40,000 from pension. (Low Income).
The computer doesn't know you retired. It only sees the 2024 tax return and automatically applies the surcharge. This is incorrect, and you must fight it.
3. The Golden Ticket: Form SSA-44
You do not need a lawyer. You need Form SSA-44 (Medicare Income-Related Monthly Adjustment Amount - Life-Changing Event).
This form tells the government: "My income from 2 years ago is irrelevant because my life has changed."
Valid "Life-Changing Events" Include:
- Work Stoppage: You retired or were laid off. (Most common).
- Work Reduction: You switched from full-time to part-time.
- Marriage/Divorce/Death of Spouse: Your household income structure changed.
- Loss of Pension: A defined benefit plan stopped paying.
Note: A one-time capital gain from selling a house usually doesn't count unless it coincides with one of the above events, but you can still try if your overall income has permanently dropped.
4. Step-by-Step Appeal Process
Don't just pay the bill. Follow these steps to save your money:
📝 How to File
- Download Form SSA-44: Get it from the SSA.gov website.
- Step 1: Check the box for your "Life-Changing Event" (e.g., Work Stoppage).
- Step 2: Enter the date of the event (e.g., Retirement Date).
- Step 4: Estimate your current year's reduced income.
- Attach Proof: Include a copy of your resignation letter, settlement statement, or death certificate.
- Submit: Mail it to your local Social Security office or drop it off in person (recommended).
5. What Happens Next?
If approved, the SSA will recalculate your premium based on your new, lower estimate.
- Retroactive Refund: If you already paid the higher amount for a few months, they will refund the difference or credit it to future premiums.
- Success Rate: For legitimate retirements, the success rate is extremely high.
Don't Let the "Lookback" Look Down on Your Wallet
Retirement is expensive enough without paying a 300% markup on health insurance due to a clerical lag.
If your income has dropped significantly compared to two years ago, filing Form SSA-44 is the single most profitable paperwork you will ever do. It takes 15 minutes and can save you $3,000+ every year.
Action Plan:
- Did you receive an "Initial IRMAA Determination" letter? Don't throw it away.
- Compare your current income to the IRMAA brackets. If you are below the limit now, you qualify for an appeal.
- Download Form SSA-44 today and gather your proof of retirement.
Helpful Resources:
SSA.gov: Request to Lower Medicare Premium
CMS.gov: 2025/2026 Medicare Costs
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