NJASA

Medicare Reimbursement: 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 Medicare cost of $109. 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, $109. 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:

So let us say your income was above $214K (single), you pay per month $428.60 for Medicare Part B and $76.20 for Medicare Part D. NJ State gives you back $109.00 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 2 in order to be eligible. Generally checks are sent out beginning April 30, 2018.

1) A copy of the cost-of-living adjustment letter you received from Social Security at the end of 2016 notifying you of your 2017 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 2015 federal tax return; AND

2) A copy of your 2017 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 2017. 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. 

To:       Division of Pensions and Benefits

Re:       Reimbursement of 2017 Medicare Part B and Part D for Retirees

            Who Were Subject to Additional Income Related Premiums in 2017

From:  Gertrude Doyle, Retirement ID #; Social Security #

           Spouse: Donald L. Doyle, Social Security #

Date:   February 21, 2018

Enclosed please find 2017 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 2016, notice of 2017 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.