Employer settlement payment and IRMAA
By Elder PaperworkUpdated
Short answer
A settlement payment from a current or former employer can be a life-changing event for IRMAA.
It must come from the employer’s closure, bankruptcy or reorganization.
Proof: a statement from the employer or its attorney, or a court document.
Sources: POMS HI 01120.043; Form SSA-44 (12-2025). Read November 4, 2026.
Key facts
When does a settlement count?
When your MAGI drops after you or your spouse got a settlement from an employer.
The settlement must come from the employer’s closure, bankruptcy or reorganization.
What proof do I need?
- A statement from the employer
- A court document showing the settlement and its terms
- A statement from the employer’s attorney
Plus your income and filing status for the year to use.
Find out in a few minutes if you qualify.
Check my savingsHow do I ask?
Social Security lists these ways to send Form SSA-44 with your evidence:
- Online, after you sign in to your account
- By phone at 1-800-772-1213 (TTY 1-800-325-0778)
- By fax or mail to a Social Security office
You can do this yourself, for free.
Box by box: how to fill out Form SSA-44.
Questions
Does any severance count as a settlement?
The rule covers settlements from an employer’s closure, bankruptcy or reorganization.
Can it be my spouse’s settlement?
Yes, if it lowered your MAGI. Each spouse on Medicare files their own request.
What proof works?
A statement from the employer or its attorney, or a court document.