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How to Lower Your Medicare Premiums

Medicare beneficiaries must pay monthly fees called premiums for insurance that covers “medically necessary services.” But, did you know that you reduce your premiums? There are many ways to do this. 

Nearly everyone pays a premium for Medicare Part B, Part D, Medigap, vision, hearing, and dental plans. These fees can add up. However, whether you’re enrolling for the first time or already on Medicare, you can save money on your Medicare premiums. 

Have Medicare Surcharges Reviewed

Most recipients pay a standard rate for Medicare coverage. As expected, high-income taxpayers will pay more. If you make more than $87,000 per year (individual) or over $174,000 (married couples), you’ll pay a higher premium or an Income Related Monthly Adjustment Amount (IRMAA).  

In reviewing IRMAA, Medicare doesn’t address your current income. Your premium stems from your modified adjusted gross income — from two years earlier. You can ask the SSA to reassess your premium if your income decreases because of:

  • Divorce
  • Retirement 
  • Death of your spouse

These would be classified as “life-changing events” that may cause your income to drop.

Get Low-Income Support

There’s a Medicare subsidy available to reduce Part D premiums and out-of-pocket expenses for medications. If you have Medicaid, you automatically qualify for this Extra Help subsidy. However, you can get Extra Help even if you aren’t eligible for Medicaid. Low-income folks should utilize the support to help lower their premiums and other costs.    

Get Medicare Advantage Part B Premium Reduction

Everybody must pay a premium for Medicare Part B. Some advantage (Part C) programs have an integrated premium reduction. How it works is your plan pays a share of the Part B premium, and you pay the remainder. So, having a Medicare Advantage plan with this option will lower your overall premium costs. 

Related Post: Medicare Advantage and Medigap: How Are Costs Determined?

Deduct Medicare Premiums from Your Taxes

You can subtract certain medical costs from your tax return. Deductible medical expenses include your Part B, D, and Medicare Advantage premiums, but there are limits to the deduction. First, you need enough total deductions to list them instead of taking the standard deduction. Second, you can’t deduct ALL your medical charges. You can only deduct medical costs that eclipse 10% of your adjusted gross income (AGI).

Use Your HSA to Pay Premiums

If you have money in a health savings account (HSA), you can use this to pay your Medicare Part B, D, or Medicare Advantage premiums. Unfortunately, you can’t use an HSA to pay Medigap premiums. The money in your account is tax-free — as long as you use it for health care charges. Remember, it’s cheaper to pay for items with pre-tax funds than to use taxed money.

Related Post: How to Save Money on Medicare

Get Help Lowering Your Medicare Premiums

Trusted Senior Specialists provides FREE Medicare quotes from the top insurance carriers. Our experienced agents can help you compare your plan options and answer any questions. By comparing your options, you give yourself the chance to reduce your premiums. Call (855) 952-1941 or contact us online to get started.