Medicare recipients can find themselves in a Social Security/Medicare loop that causes their Medicare premiums to increase due to a one-time influx of cash, such as selling a home.
This is called an IRMAA or “Income-related monthly adjustment amount,” which is based on your income two years previously and can significantly raise premiums for Medicare’s Part B, which covers doctors’ visits, and Part D, which covers prescriptions.
However, there is a potential solution. The Social Security Administration, which handles Medicare premiums, will reconsider an adjustment if you undergo certain “life-changing events” that lower your income.
Before the change in premiums took effect, Social Security should have sent you a notice, which included instructions about requesting a review. Social Secuirty will reconsider an adjustment if you’ve experienced certain “life-changing events” that lead to an income decrease.