File and suspend and Hold-harmless rule (spouse, 2015, retired, years)

[loves2read]

I read that someone who is concerned about the Medicare premium increase in 2016 and is not currently receiving SS benefits COULD file for benefits and then in 2016 suspend SS benefits to allow for the 8% increase over time while the Medicare premium was not increased....

Is this accurate?

Is it too late to file now in Oct and be eligible for Nov and Dec benefits--which is what it takes to fall into the hold harmless category apparently?

IF you and your spouse pay the surcharge because of higher MAGI levels for past/current Medicare premiums, AND you both file for benefits now--will you pay the 2015 level of surcharge in 2016 OR will you be forced into paying 2016 surcharge whether you are eligible for Nov/Dec benefits (with higher income level)?

I think in order to fall into hold-harmless category and escape punative higher surcharge for MAGI that we would have to file for amended income ongoing in 2016 as well as file for benefits...
and I don't think SS could make a decision soon enough on eligibility for reduced income calculation.

I don't care if the timing was off--in that we might have to pay higher Medicare surcharge for several months while waiting for decision IF once they reduced the income we qualified for the hold harmelss at 2015 levels...

Does anyone have any experience with applying for that type of adjustment?

I was told when we first applied for Medicare and we anticipated my husband's retirement with a lowered MAGI that we would be refunded any excess payments to Medicare if we appealed the income MAGI level and had it reduced...

Just very complicated situation since husband's income had two types--one from company (third party) he was employed by and one from S-corp (self-employment income)...Third party stopped two years ago and S corp income dropped significantly in 2015...but if we wait for normal process--we don't see benefit of reduced 2015 income until 2017...

[mathjak107]

the answer is here . it may not be worth the effort .

yes you can do it but effectively the checks you receive prior to suspending will reduce the amount you get for life even though you continue to grow by suspending .

next year if there is a cola the pool is big enough that the rate will drop since everyone will then share the increase in costs not just those who are on medicare but didn't file yet or suspended ,. . in the mean time if not by being suspended next year he is not covered under hold harmless for the next increase .


http://time.com/money/4001110/medica...w-time-claims/

[loves2read]

That is the article I was referring to--
and the article says that IF he files and received Nov and Dec that in 2016 he can elect to suspend his SS and still pay the 2015 Medicare premium out of pocket/directly...

I would be happy to pay just the regular 2016 Medicare premiums which would be a reduction from what we pay now with the surcharges on higher MAGI...

Do you have any insight/experience with applying for an MAGI appeal?
I know you recently retired--
don't know if you applied for either SS or Medicare

[mathjak107]

you may give more back over a life time since what grows at 8% will be reduced forever by the amount paid out spread out over a life time . . so if he files at 70 he is deemed filing at 70 less the number of months already collected . not a big difference but enough so over the years you likely will give more back then you saved .