Medicare is a wonderful resource for those 65 and over, providing a more affordable healthcare insurance over private insurance companies. Still, it does cost money to use the various parts of Medicare, including premiums, deductibles, and co-insurance. Even if you paid into Medicare for decades, your tax money mainly went toward Medicare Part A. You’re still responsible for Medicare Part B, Part C, and Part D premiums, which might be more expensive than you think.
The following are some things to keep in mind when it comes to reducing Medicare premiums, as well as deciding on what Medicare plan you want.
Use A Health Savings Account To Pay Premiums
You might want to think about contributing to a health savings account (HAS) and use the money you put there for your Medicare premiums. The great thing about an HSA is that the money you put in is not taxed. And, it’s not taxed when you take it out either, as long as you use the money for a medical expense that is qualified by Medicare. Good news is that your Medicare premiums are qualified, so you and simply pay your Medicare premium out of your HSA without paying tax on that money, which means you save money because that’s money that’s never been taxed.
See If You Qualify For Medicare Premium Assistance
You may be able to get help paying for Medicare Part B and Part D premiums though Medicare Savings Programs. Check at your local Department of Health and Human Services office to see if you qualify due to low income. You might be able to get your Medicare premiums reduced or covered entirely.
See If Your Medicare Premium Is Tax Deductible
Sometimes Medicare premiums are tax deductible, so it’s worth looking into. Essentially, if you’re itemizing deductions for incurred medical expenses on your Form 1040, you may be able to deduct your Medicare premium. Ask your accountant about this when filing your taxes.
File An Adjustment – Income Related Monthly Adjustment Amount (IRMAA)
If you’re total income today is a lot lower than it was two years ago, you can file Form SSA-44 to try to get an adjustment to your Medicare premium. That reduction in yearly income can potentially reduce your Medicare Part B premium.
Talk To A Medicare Specialist
If you’re having a tough time paying for your Medicare premiums, consider reaching out to a Medicare specialist to see if you can reduce them. There are various programs and rules may change from year to year, so it’s best to let a specialist point you in the right direction.