How to Appeal IRMAA
In yesterday’s post we discussed how higher income at a farmer’s retirement can cause their Medicare Premiums to rise and the increase can be substantial. This is referred to as the Income-Related Monthly Adjustment Amount (IRMAA). We also discussed that you could appeal this increase.
In today’s post, we will discuss what factors allow you to appeal the increase. The Social Security Administration will send you a notice of any increase in premiums. Once you have this notice, you may appeal to them if you have some type of life-changing event. These events include, but are not limited:
- The death of a spouse,
- Marriage,
- Divorce or annulment,
- You or your spouse stopped work or are reducing your hours,
- Involuntary loss of income-producing property due to a natural disaster, disease, fraud, or other circumstances,
- Loss of pension,
- Receipt of settlement payment from a current or former employer due to the employer’s closure or bankruptcy, and
- Other
You can also indicate if Social Security used outdated or incorrect information when calculating IRMAA such as an amended return being filed that reduced your income or a more recent return showing lower income.
If they still rule against your appeal, you make then request a reconsideration with them. There is a special Office of Medicare Hearings and Appeals that deals with these requests.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
What is the history of farmer appeals of IRMAA because of an increase in income for a year or two at retirement due to not having the expense of putting out the next crop? Are farmers typically successful with appeals on these grounds?