Are You Filing Each Year? If Not, you are Costing Yourself Thousands Of Dollars.
Here is a summary on Medicare Reimbursement for those who are eligible.
If your total income (from previous tax year) is $85K or less, or $170,000 for a joint return, you pay the basic Medicate cost of $104.90 per month.
That amount is returned to you each month in your pension check (TPAF members who have free health benefits).
When your turn 65, you go on Medicare. If you collect social security, the cost of Medicare, $104.90 is taken out of your social security check. If you are not yet collecting social security, you have to send the feds that amount each month.
If your total income is above $85K (single filer) or $170K (joint filer) the amount taken out of your social security check is more.
Here is a chart that shows how much folks have to pay:
Monthly Medicare Premiums
Your Yearly Income
2016 Part B
2016 Part D
If You File an Individual Tax Return with Income of:
If You File a Joint Tax Return with Income of:
If You Are Married but You File a Separate Tax Return From Your Spouse and Your Yearly Income is:
$85,000 or less
$170,000 or less
Under $85,000 or less
So let us say your income was above $214K (single), you pay per month $389.80 for Medicare Part B and $72.90 for Medicare Part D. NJ state gives you back $104.90 in your monthly pension check. This is the base amount everyone pays.
Once a year you are able to apply for the remainder of the money that was taken from your social security check (or you paid yourself if not collecting social security).
THIS IS THE IMPORTANT PART!!
In February each year, the Division of Pensions and Benefits sends you a letter that outlines what you have to do to get your money back. You must submit the required documentation by April 1 in order to be eligible. Generally checks are sent out at the end of April.
1) A copy of the cost-of-living adjustment letter you received from Social Security at the end of 2015 notifying you of your 2016 Medicare Part B and Part D premium increases and the income-related premiums. If you need a copy of this letter contact your local Social Security office; if you are unable to locate the cost of living letter, please send the first 2 pages of your 2014 federal tax return; AND
2) A copy of your 2016 Social Security Form SSA-1099. If you do not receive a Form SSA-1099 you must submit other proof of Medicare Part B and Part D premium payments for 2016. Proof of payment may be shown by forwarding copies of quarterly billing statements or cancelled checks.
A little more advice:
I send my documents by special mail so that I get a signature that my letter was received.
I also include a cover memo. Here it is. Please note my husband is also covered by the New Jersey State Health Benefits Plan. His Medicare costs are also taken from his social security check; and therefore; we are entitled to get back his money.
To: Division of Pensions and Benefits
Re: Reimbursement of 2016 Medicare Part B and Part D for Retirees
Who Were Subject to Additional Income Related Premiums in 2016
From: Gertrude Doyle, Retirement ID #; Social Security #
Spouse: Donald L. Doyle, Social Security #
Date: February 13, 2017
Enclosed please find 2016 Social Security Form SSA-1099 for Gertrude M Doyle and Donald L Doyle (spouse) and the cost-of-living adjustment letter from Social Security at the end of 2015, notice of 2016 Medicare Part B and Part D premium increases and the income related premiums for Gertrude and Donald Doyle.
Thank you for your consideration.
Gertrude M Doyle
So that is it. So far I have gotten checks back each year from the State of NJ for my additional costs.
All retirees who are above the minimum income levels need to be aware of this so that they receive the money to which they are entitled.