Craig Wear, CFP®Craig Wear, CFP® | Expert in Roth Conversions & Tax-Efficient Retirement Strategies for IRA Millionaires

Maximizing Medicare Your Benefits

4 May 2024 · 0 min

Watch on YouTube

0:25

Short YouTube video segment by Craig Wear, CFP® explaining that Medicare determines premiums/adjustments using your modified adjusted gross income (MAGI) from two years prior (they always look two years back). He advises clients to proactively request a change from the government if their current income has dropped compared with that look-back year.

So Medicare looks at your modified adjusted gross income, and they always look two years back. So in your case, you're making more than what you were in 2022, but they're still only going to look at your 2022 income. So again, every year, they're going to look two years back. Now, what I tell my clients, Craig, is if your income's dropping, we want to be proactive in asking the government to change that.