Appealing irmaa

[kstein]

Has anyone had any success appealing irmaa for a client when they inherit money (or other situations that cause a one year spike in income not shown on the appeal form)?

If so, how did that process go? Are there any other forms that a person can use? I already have this one: https://www.ssa.gov/forms/ssa-44.pdf

 

[XpressInsurance]

I had 1 client successful at fighting it. It has been at least 5-6 years ago. Good luck.

 

[somarco]

A few situations where it worked.

Teacher who received a buyout had IRMAA completely waived.

Doctor that sold his practice (but still above the threshold) had his IRMAA reduced from the max.

Could be a couple more but don't recall. Most of the folks that appeal just don't want to pay the tax.

 

[Devin01]

Has anyone had any success appealing irmaa for a client when they inherit money (or other situations that cause a one year spike in income not shown on the appeal form)?

If so, how did that process go? Are there any other forms that a person can use? I already have this one: https://www.ssa.gov/forms/ssa-44.pdf

The forms are the forms if they qualify for a life changing event what qualifiesbis laid out on the change of life form. I have had alot of success with people retiring having the iirma overturned .

 

[Northeast Agent]

Medicare beneficiaries with high incomes pay more for Part B and Part D. But what exactly does “high income” mean? Since the income brackets were introduced (in 2007 for Part B, and in 2011 for Part D), the threshold has been set at $85,000 ($170,000 for a married couple). But starting in 2020, the income brackets will be adjusted for inflation. A high-income premium surcharge will apply to Medicare beneficiaries who earn at least $87,000/year as of 2020 ($174,000 for a married couple).

Source: How are Medicare benefits changing for 2020?

 

[The Medicare Gal]

I have a client who had a one time spike in income. Appealed and won. So it defintely can be done.

 

[kgmom219]

Yes. All the time.

75% of my clients come to me over the IRMAA line.

The appeal works. IF AND ONLY IF you can prove the event. The easiest is work stoppage and the "proof" is a letter on the previous employers letterhead stating the employees name, address and last day worked.

Right now they are looking at 2017 Income. No matter what, they are going to get another letter around 12/15 and have to appeal again. And again next December. Its usually the initial appeal at the time of the Part B enrollment, then 3 more December's. I tell them to keep the form and proof, because they will be doing this at least 3 more times.

If you are using death or divorce for the reason of appeal, you need to include a copy of the death certificate or divorce decree.

 

[TwoCents]

Yes. All the time.

75% of my clients come to me over the IRMAA line.

The appeal works. IF AND ONLY IF you can prove the event. The easiest is work stoppage and the "proof" is a letter on the previous employers letterhead stating the employees name, address and last day worked.

Right now they are looking at 2017 Income. No matter what, they are going to get another letter around 12/15 and have to appeal again. And again next December. Its usually the initial appeal at the time of the Part B enrollment, then 3 more December's. I tell them to keep the form and proof, because they will be doing this at least 3 more times.

If you are using death or divorce for the reason of appeal, you need to include a copy of the death certificate or divorce decree.

How does one event have that lasting of an impact? Sounds like they should just pay it, but I guess if the appeals have been successful, more power to them.

 

[Northeast Agent]

kgmom219 said:

Right now they are looking at 2017 Income. No matter what, they are going to get another letter around 12/15 and have to appeal again. And again next December. Its usually the initial appeal at the time of the Part B enrollment, then 3 more December's. I tell them to keep the form and proof, because they will be doing this at least 3 more times.

Thanks for that, I wasn't aware that they would have to re-appeal.

I'm surprised at how many people tell me their FA never told them about IRMAA, only capital gains taxes when they sold a second home or something. They are completely floored by this.

 

[somarco]

How does one event have that lasting of an impact?

Client last year had a $1M buyout. Appealed and got his IRMAA bracket lowered from top tier to something less. Not wiped out completely since his regular income was $150k or so.

School teacher had a $60k buyout which took her from no IRMAA to several hundred. Appealed and won

Why pay a TAX if you don't owe it and especially if you need the money more than DC