Medicare High Income Earner Penalties & How To Reduce Them

Courtesy of Peter Palmiotto

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Retiring? Is Your Income Being Reduced?

Update Your Current Income To Reduce What You Pay For Medicare

reviewing finances for Medicare

Eliminate Social Security's Two Year 

Look Back Period To Avoid "Penalties"

You worked hard and earned decent income. Congratulations you're "penalized." Those that earn higher incomes must pay higher Medicare premiums. To determine your Medicare Part B and Part D premiums, Medicare relies on what the Social Security Administration shows as your Modified Adjusted Gross Income (MAGI) from two years ago. This negatively affects those that have recently had a notable drop in earned income. Avoid higher penalties by submitting an SSA-44 form, you can avoid the two-year look back clause and base your MAGI on today's adjusted earnings thereby avoiding penalties that you are not obligated to pay.

  • Form SSA-44 allows you to submit a request to the SSA
  • You can use "todays" income without needing to look back two years
  • This will reduce your Medicare premiums for both B and Part D
  • This is legal, ethical and welcomed by the Social Security Administration

Medicare Part B & D Premium Income Limits & Penalties For 2022

Look at these charts. Find your income range and then see what you will pay each month for your Medicare Part B premium (on the left) and your Part D premium increases (on the right). 


If your income has recently dropped, or will drop over the next few months, you need to tell SSA about it so you can lower your premiums and penalties shown below. You can find the SSA-44 Form here and you will need to send it to a local office. Find one near you >>>.


NOTE: It's strongly advised you make yourself a copy of what you submit, and send the application certified mail so you have evidence of mailing.

high income penalty chart for Medicare B
high income earner chart 2022

Rates shown above are per person, per month and change each year.

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