Dear Rusty: Social Security is deducting $297 per month for my Medicare Part B coverage. I have what’s called a “Windfall Elimination Provision” because I receive a pension from my former State employer. Prior to my 65th Birthday in July of this year, Social Security was paying me $764 per month, but when I turned 65 they reduced my amount to $467 per month. I read that the Part B premiums for 2021 are $148.50, so I wonder why I’m paying double that amount? Could it be that I never enrolled in Medicare Part B and they just automatically started deducting that amount? Some sort of penalty? If so, it seems kind of high. Can you explain why I’m paying so much for Medicare Part B? Signed: Curious About MedicareDear Curious: Your Part B premium of $297/month has nothing to do with the Windfall Elimination Provision (WEP). WEP affects (reduces) your Social Security retirement benefit amount but doesn’t affect your Medicare premium. Your Medicare Part B premium is $297/month because of a different Medicare rule known as “IRMAA,” which is the “Income Related Medicare Adjustment Amount.” Here’s how IRMAA works:Medicare determines your Part B premium amount each year using your combined income (from all sources) from 2 years prior, so your 2021 Part B premium is based upon your 2019 income. The income amount used to set your Part B premium is called your Modified Adjusted Gross Income (MAGI), which is your normal Adjusted Gross Income on your tax return plus any other non-taxable income you may have had (including half of your SS benefits, non-taxable interest, etc.). If your MAGI is over a certain threshold, your Part B premium is more than the standard $148.50.The IRMAA thresholds at which you pay a higher Part B premium depend upon your tax filing status. A married couple filing jointly with MAGI under $176,001 pays the standard premium ($148.50 for 2021), and a single tax filer whose MAGI is under $88,001 also pays the standard Part B premium, but income exceeding those thresholds means a higher Part B premium. How much higher depends upon how much your MAGI exceeds the base amounts above. The Part B IRMAA premium increases on a scale relative to how much your MAGI exceeds the base threshold and, from what you’ve shared, it appears that your 2019 MAGI resulted in a 2021 Part B premium of $297/month.Since ...
