Medicare is a great retirement benefit offered to Americans 65 and older. For most people it offers significant savings on their health insurance. To help pay for this program, those with higher incomes pay higher premiums. These higher premiums start for individuals earning over $97k (couples earning over $194k) and go up more for those with higher incomes.

The system sometimes unfairly penalizes recent retirees because the income is tested on a two-year lag. Your 2023 Medicare premiums are based on your 2021 income. Let’s say you retired in 2021 and your income was much lower in 2022. You don’t need to wait until next year for your Medicare premiums to drop. You can alert Medicare to this life changing event and get your premiums reduced in a month or two. All you need to do is fill out form SSA-44. It will ask for your updated income figures and some documentation. Then you’re on your way.

Tell your friends. Let me know if you have questions.

About the Author:

John has more than ten years experience as an Investment Advisor. He focuses on devising and maintaining portfolios that meet individuals’ needs, investment research, and investment strategy. John has been recognized as a “FIVE STAR wealth manager” by Twin Cities Business Magazine 2016-2022. He is a CFA charterholder and CERTIFIED FINANCIAL PLANNER™ Professional.

Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. CTW gathers its data from sources it considers reliable. However, CTW makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.