Thanks in advance for any help provided. I know enough here to be dangerous but don't want to get tripped up on the details. The timing issues and IRMAA impact, along with the spousal component, makes this a little more tricky than the standard Medicare application.
Background:
I am turning 65 and eligible for Medicare in April 2024. I will retire (announced to the organization and transition plan underway) on June 30, 2024. I have solid employee health coverage through my retirement date of June 30 but not beyond. Spouse turned 65 in November 2023 and is currently enrolled only in Medicare Part A. She will remain a participant in my employee health care plan through my retirement date.
- Based on 2022 AGI, my income level places me squarely in the IRMAA surcharge 4th tier level. Although only working six months in 2024, a large one-time bonus and accelerated stock vesting will keep 2024 AGI in the IRMAA 4th tier level, so it would seem that there is no advantage in 2024 to appeal the IRMAA surcharge level by using the "life changing" event of retirement to lower my 2024 IRMAA surcharge. [My 2023 AGI, due to the bonus and stock vesting, will be within the IRMAA 4th tier level.]
- In 2025, I expect my income to decline to a level that places me within the IRMAA 2nd tier.
- I will need to enroll in Medicare no later than June 30, 2024. I plan to enroll in Part A, Part D (Prescription Drug) and a Medigap plan.
- I also will concurrently need to extend my wife's coverage to include Part D and a Medigap plan since my employee health coverage will end effective June 30.
Questions::
- Does it make more sense to keep it simple and enroll in Medicare (Parts A, D, and supplement) for me in April? Or should I make it a two-step process - enroll in Medicare Part A in April 2024 and then add Medicare Part D and supplement upon retirement in June 2024?
- Since I need to extend Medicare coverage for my wife to include Part D and a supplement, does this force me to perform the two-step process and enroll in June 2024? This is based on the assumption that my spouse needs to be linked to my retirement to be eligible within the year to add Part D and a supplement to her current Part A coverage. If this is the case, I can immediately apply for Part A for me. What month should I apply to extend coverage to both Part D and a Medigap supplement for me? Should the timing to extend be the same for my wife?
- Since there is no opportunity to reduce my IRMAA Tier in 2024 through appeal (e.g. life changing event - retirement), I assume I just accept the IRMAA surcharge?
- In 2025, can I appeal my IRMAA surcharge due to the one-time life changing event in 2024 of retirement? This would result in a reduced IRMAA surcharge due to lower 2025 AGI.
- Would the same be true in 2026 [otherwise, I'd be back in the IRMAA 4th tier based on 2024 AGI]? This would also result in a reduced IRMAA surcharge due to lower 2026 AGI.
Background:
I am turning 65 and eligible for Medicare in April 2024. I will retire (announced to the organization and transition plan underway) on June 30, 2024. I have solid employee health coverage through my retirement date of June 30 but not beyond. Spouse turned 65 in November 2023 and is currently enrolled only in Medicare Part A. She will remain a participant in my employee health care plan through my retirement date.
- Based on 2022 AGI, my income level places me squarely in the IRMAA surcharge 4th tier level. Although only working six months in 2024, a large one-time bonus and accelerated stock vesting will keep 2024 AGI in the IRMAA 4th tier level, so it would seem that there is no advantage in 2024 to appeal the IRMAA surcharge level by using the "life changing" event of retirement to lower my 2024 IRMAA surcharge. [My 2023 AGI, due to the bonus and stock vesting, will be within the IRMAA 4th tier level.]
- In 2025, I expect my income to decline to a level that places me within the IRMAA 2nd tier.
- I will need to enroll in Medicare no later than June 30, 2024. I plan to enroll in Part A, Part D (Prescription Drug) and a Medigap plan.
- I also will concurrently need to extend my wife's coverage to include Part D and a Medigap plan since my employee health coverage will end effective June 30.
Questions::
- Does it make more sense to keep it simple and enroll in Medicare (Parts A, D, and supplement) for me in April? Or should I make it a two-step process - enroll in Medicare Part A in April 2024 and then add Medicare Part D and supplement upon retirement in June 2024?
- Since I need to extend Medicare coverage for my wife to include Part D and a supplement, does this force me to perform the two-step process and enroll in June 2024? This is based on the assumption that my spouse needs to be linked to my retirement to be eligible within the year to add Part D and a supplement to her current Part A coverage. If this is the case, I can immediately apply for Part A for me. What month should I apply to extend coverage to both Part D and a Medigap supplement for me? Should the timing to extend be the same for my wife?
- Since there is no opportunity to reduce my IRMAA Tier in 2024 through appeal (e.g. life changing event - retirement), I assume I just accept the IRMAA surcharge?
- In 2025, can I appeal my IRMAA surcharge due to the one-time life changing event in 2024 of retirement? This would result in a reduced IRMAA surcharge due to lower 2025 AGI.
- Would the same be true in 2026 [otherwise, I'd be back in the IRMAA 4th tier based on 2024 AGI]? This would also result in a reduced IRMAA surcharge due to lower 2026 AGI.
Statistics: Posted by jr6857 — Sat Jan 13, 2024 2:45 pm — Replies 5 — Views 258