There are some tricky areas about Medicare benefits that if you didn’t know about can be costly for you. This is the main reason why it is so important to discuss your Medicare needs with a professional licensed and trained representative instead of trying to enroll yourself in Medicare without some help.

Most, but not all enrollees do not pay for Part A due to working more than 10 years and paying into the Social Security and Medicare program. Currently, in 2021, Social Security or Railroad Retirement Board deducts $148.50 for Part B Coverage per month from your benefits. The Social Security Administration uses your tax return from 2 years prior to determine your costs for Part B. If your income is above a certain amount, you will have to pay the standard amount plus an Income Related Monthly Adjustment Amount (IRMAA). Below is a chart to determine the extra charges:

If your yearly income in 2019 (for what you pay in 2021) was You pay each month (in 2021)
File individual tax return File joint tax return File married & separate tax return
$88,000 or less $176,000 or less $88,000 or less $148.50
above $88,000 up to $111,000 above $176,000 up to $222,000 Not applicable $207.90
above $111,000 up to $138,000 above $222,000 up to $276,000 Not applicable $297.00
above $138,000 up to $165,000 above $276,000 up to $330,000 Not applicable $386.10
above $165,000 and less than $500,000 above $330,000 and less than $750,000 above $88,000 and less than $412,000 $475.20
$500,000 or above $750,000 and above $412,000 and above $504.90

The first thing to note when turning 65 or first applying for Medicare Benefits, it is not free. In order to protect yourself from financial troubles later, you should apply for Part A and Part B when you are first eligible.

Many individuals think that there is no charge for Medicare benefits and that simply is not true. Normally, most individuals fall into the first category which does not have a surcharge or IRMAA extra charges.

So, what are your options if your income has drastically changed since filing that return in 2019? What if your adjusted gross income that year was due to a large bonus or other financial windfalls that you had to claim that year? All is not lost, there are things you can do to remedy and possibly be returned to a normal situation where you are not having to pay an additional surcharge or extra charge.

First—download and fill out the Social Security Form; Medicare IRMAA Form

Second—Schedule an appointment at your local Social Security Office by calling 1-800-772-1213

During your process of disputing the additional charges levied by Social Security, you will have to pay the additional charges. If during your appeal or dispute, Social Security denies your request, you have one final option.

You can appeal the decision to an Administrative Law Judge, this process takes some time so you will still be responsible for the additional fees on your Medicare Benefits.