Part B premiums are determined by the previous year’s tax returns. For most people, the income from the previous year isn’t always accurate. Many events can occur in one year including marriage, divorce, death, loss of job or any other life changing event. Social Security may lower your Part B premium if any of the above events occur. By providing evidence of a death, marriage, or divorce certificate, or a letter from an employer, Social Security will lower your Part B premium according to your current income.
Many people were victims of Bernard Madoff’s fraud and have lost a considerable amount of income due to this scheme. Originally, Madoff victims were not included in the above categories of life changing events. As of June 9, Social Security determined that “if someone had a reduction of income as the result of criminal theft or an investment scam, they can qualify as having a life-changing event.” Just like the above instances, you need to provide documentation to Social Security. Documentation would include an account statement from Madoff’s firm or a court document stating you as an alleged victim.
If you are an alleged victim or have had a life changing event recently, visit http://ssa.gov/online/ssa-44.pdf to fill out a form to request a reduction in your Medicare Part B premium.
For the full article, go to http://online.wsj.com/article/SB124546138795033219.html