WESTERN ADVISORS
Your Social Security check will not be what you think it should be!
Your Medicare premiums will be deducted from your Social Security check.
What will you have left in your retirement?
Get a free report that shows what your healthcare costs will be in retirement and learn how to how to minimize them and avoid IRMAA surcharges!
If you are going to collect Social Security and be on Medicare then this is critical information for you!
An example of what to expect from your Social Security benefit:
The BLUE LINE
YOUR
SOCIAL
SECURITY
BENEFIT
The BLUE line represents Person A's Social Security benefit increasing by the 2.40% COLA for inflation.
The RED LINE
YOUR
MEDICARE
PREMIUMS
The RED line represents Medicare Premiums, including premimums for a Medigap Plan G Policy
The GREEN LINE
YOUR
SOCIAL SECURITY
BENEFIT
AFTER
MEDICARE
The GREEN line represents their ACTUAL Social Security benefit AFTER Medicare premiums are
taken out.
Person A is 55 years old and has earned $75,000 in annual wages and is expecting to receive about $39,000 in Social Security benefits at age 67 when they retire.
FREE Medicare Cost Analysis Report
Who Should Get this Report?
If you are going to collect Social Security and be on Medicare then this is critical information for you! You will learn what your healthcare costs will be in retirement and how to avoid IRMAA surcharges!
YES! I would like to know my lifetime Medicare costs!
Just fill out the form below to receive your free analysis with a comprehensive report. A representative of Western Advisors will contact you to gather the necessary information to generate the report.
Less than 8% of Americans have planned for Health Care Costs in Retirement!
Many people heading into and in retirement are counting on Social Security to be part of their income. The problem, though, is that due to federal laws, inflation, and IRMAA the amount you receive may not be what you think it should be.
The federal laws you need to know about:
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You must enroll in Medicare in order to receive your Social Security benefit.
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The majority of your Medicare premiums will be deducted from your Social Security benefit.
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The President at the stroke of a pen can lower IRMAA brackets at any time, thus reducing your Social Security check.
The Challenge:
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Social Security benefits increase each year by the cost-of-living adjustment (COLA) which is projected to be, according to Social Security.gov, no higher than 2.4%.
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Meanwhile, Medicare premiums are projected to inflate by over 6.3%.
Inflation and the escalating cost of health care.
GET A FREE MEDICARE COST ANALYSIS AND REPORT!
Projected Inflationary Costs of Medicare
How Inflation Will Impact Your Premiums and Cost of Medicare (without IRMAA)
One key to planning for retirement is projecting Medicare costs by determining the inflation rate of these premiums. Fortunately, this information is provided by the federal government.
Each year the federal government, through the Medicare Board of Trustees’ annual report, releases projections on what can be expected for future Medicare premiums.
The Trustees reported that the premiums are projected to inflate through the year 2028 as follows:
• Part B: 6.33%.
• Part D: 5.19%.
• Supplemental coverage (Medigap): 5.77%.
Report Example
What is IRMAA?
According to Medicare.gov if you generate too much income while enrolled in Medicare, Federal Law requires an adjustment to your monthly Medicare Part B and Part D premiums. This surcharge is known as the Income Related Monthly Adjustment Amount or IRMAA for short.
The President can sign an executive order at any time to lower IRMAA brackets which would subsequently result in more Medicare costs being passed on to you and lowering your Social Security payment.
How Medicare defines income for IRMAA:
Medicare defines income for IRMAA to be “your adjusted gross income plus any tax-exempt interest you may have” or everything on lines 2a and 8b on the IRS form 1040.
What is the process in how Medicare implements IRMAA? Medicare will look at your past two years tax returns, which they receive from the IRS. If you reach an IRMAA bracket you will then be notified by Social Security of your increased Medicare charges.
Will you get the letter?
Perhaps you have received a letter from the Social Security Administration that looks like this?
Whether you have received one or not, if you want to learn how to avoid getting hit with IRMAA charges then order a free Medicare report on this page...
The Four Rules of Retirement
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Rule 1: You have a mandatory expense in retirement.Under Federal regulations to receive your Social Security benefit you must also enroll in Medicare Part A when eligible. Failure to do so results in the forfeiture of all Social Security benefits. Eligibility for Medicare is age 65 or older and no longer having creditable health coverage through an employer or spouse’s employer. Medicare also includes other types of coverage, Part B and Part D. These two types of coverage do have premiums as well as late enrollment penalties for those who do not enroll when eligible.
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Rule 2: Your mandatory expense in retirement is based on your income.The one thing you must have in retirement, Medicare, just happens to, also, be based on your income. Within Medicare there is the Income Related Monthly Adjustment Amount or IRMAA. This, simply, is a surcharge added to Medicare Part B and Part D premiums for those who earn too much income while enrolled in Medicare.
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Rule 3: The definition of income for IRMAA is extremely broad.Medicare defines income for IRMAA as “adjusted gross income plus tax-exempt interest”. Some examples of income that count towards IRMAA are: Social Security, Wages, Tips, Interest, Rental Income, Pension Income, Capital Gains, dividends and distributions from tax-deferred investments like Traditional 401(k)’s and Traditional IRA’s. What does not count as income towards IRMAA: Roth Accounts, Life Insurance, Health Savings Accounts (HSA’s), 401(h) Plans and Home Equity.
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Rule 4: The bulk of your Medicare premiums and any IRMAA surcharges are deducted from your Social Security benefit.Federal regulations state that Medicare Part B premiums (and optionally Part D) as well as any surcharges due to Medicare’s IRMAA are automatically deducted from any Social Security benefit you may receive. Medicare premiums, according to the Medicare Board of Trustees, are projected to inflate by over 6.3% annually for the next 8 years (pre-Covid). During this same time the Social Security Board of Trustees is projecting that the cost-of-living-adjustment (COLA) for inflation will be no higher than 2.40% annually (pre- Covid).
A Summary of How Medicare Premiums Work:
MEDICARE
Medicare is a Federal health insurance program for individuals aged 65 and over. While Medicare provides essential healthcare coverage to millions of Americans, it also comes with premiums that beneficiaries must pay.
Medicare premiums are determined based on several factors, including income level, the type of coverage a person has, etc...
PART A
For most Medicare beneficiaries, the premium for Part A (which covers hospital stays, skilled nursing care, and some home health care services) is free if they or their spouse have worked and paid Medicare taxes for at least 10 years.
However, there may be deductibles, co-insurance, and other out-of-pocket costs, as well.
PART B
For Medicare Part B (which covers doctor visits, outpatient care, preventive services, and medical equipment), most beneficiaries pay a monthly premium, with the amount determined by income.
The majority of Medicare beneficiaries have their Part B premiums deducted from their Social Security payments.
This means that the amount of the Medicare premium is subtracted from the Social Security benefit before it is paid to the beneficiary.
COLA
The increase in Social Security benefits due to the Cost of Living Adjustment (COLA) from inflation may not be enough to offset the increase in Medicare premiums from inflation.
But Don't Just Take Our Word For it...
Here's what others are saying...
