Medicare Part B Income Related Premium

[susieq]

Does anyone know if the increase in premium for Mdicare Part B would be abated for 2007 if the unusually high income in 2005 will never occur again ? Client liquidated an annuity in 2005 causing his AGI to be > $80,000. He files MFS. IRS exchanged information to SSA using 2005 figures. His normal AGI is around 60,000.

Talked to SSA and they told me to file form SSA 561-U2 (Request for Reconsideration). Found it online. Also came across Form SSA-44 (Medicare Part B Income-Related Premium - Life Changing Event) . Don't know if the fact that the retiremant account is no longer would be in the same category as Loss of Pension income. Would love to hear your opinions. Thanks

[Bees Knees]

The answer is yes you can appeal and yes the higher rate may not apply. TTB, 2006 edition, page 1-11 says, "Medicare recipients may be able to appeal the rate increase if they can show they had a life-changing event that affected their income, or the taxpayer filed an amended return which decreased the income below the thresholds."

I assume the one time annuity distribution can be attributed to a "life-changing event" and that something like that won't happen every year.