How Retirees Can Lower Their Medicare Premiums

Many upper‑middle‑ and upper‑income retirees are surprised to find that their Medicare Part B and Part D premiums are higher than the standard amount. That extra charge, called the Income‑Related Monthly Adjustment Amount (IRMAA), is based on income from two years ago. If your income was high while you were working but drops when you retire, you may be paying more than you need to.

The good news is there’s a simple step you can take right after you retire: file Form SSA‑44 with the Social Security Administration. This form lets you report a “life‑changing event,” such as retiring or cutting back work, and ask Medicare to recalculate your premiums using your lower, current income instead of your old, higher income.

For many retirees, this can lower or even eliminate those extra Medicare charges. Some single retirees save roughly $1,700 to $9,500 over the first couple of years, and married couples (both on Medicare) can save up to about $3,400 to $19,000 over the same period.

If you retired recently, worked full‑time after age 63, and now have lower income, it’s worth checking whether you’re paying IRMAA and whether Form SSA‑44 could reduce your Medicare premiums. You can submit the form to your local Social Security office, either in person or by mail, along with proof that your income has dropped.

By taking this one step early in retirement, you can keep more of your retirement income in your pocket instead of paying higher Medicare premiums.