Share this article
Facebook
Email
Print
Higher-income, Medicare beneficiaries will pay more for Part B and Part D because of a surcharge that is added to their monthly premiums. The Income-Related Monthly Adjusted Amount (IRMAA) surcharge for Part B went into effect in 2007 and the surcharge for Part D began in 2011.
What is IRMMA?
IRMAA, is a sliding scale used to adjust Medicare Part B and Part D premiums. The higher the individual’s modified adjusted gross income, the higher their IRMAA amount. Medicare uses the beneficiary’s tax returns to determine their IRMAA surcharge amount.
If an individual’s modified adjusted gross income as reported on their IRS tax returns from 2 years ago is $91,000 ($182,000 if filing jointly) or more, they will pay more than the standard rate for Part B and Part D.
For example, a Medicare beneficiary who earned $92,000 on their 2020 tax returns will pay $238.10 for their Part B premium. That person will also pay an additional $12.40 per month on top of their Part D drug plan premium. The IRMAA surcharge applies regardless of whether the person has a stand-alone Part D plan or has their Part D as part of a Medicare Advantage plan.
To view income guidelines for IRMAA for Part B and Part D, click here.
Appeal IRMAA Decision
If you feel that Social Security made an error in calculating your IRMAA amount, you can file a for a redetermination. If you experience a life-changing event, such as a divorce, you can also file for a redetermination by clicking here.
Standard Part B Premium
Most Medicare beneficiaries pay the standard Part B premium, which is $170.10 in 2022. Some people will pay less than the standard premium because they have Medicaid or are qualified for another program to help with Medicare costs. Social Security will let you know the exact amount that you will need to pay for Part B, including if you qualify for the IRMAA surcharge.
Part D Premium
Medicare members can choose to enroll in a stand-alone Part D plan or select a Medicare Advantage plan that includes Part D. Part D premiums vary greatly depending on the plan you choose. Just like with the Part B premium, Social Security will advise you each year if you qualify for a Part D premium reduction or if you have to pay the IRMAA surcharge.
Paying IRMAA
The IRMAA surcharge can change annually. Social Security makes periodic adjustments to the modified adjusted gross income amount that qualifies an individual for the IRMAA surcharge. The surcharge is also recalculated annually. Social Security will let you know each year if you qualify for the IRMAA surcharge.
IRMAA can either be automatically deducted from your Social Security check or you can elect to receive a “Medicare Premium Bill” in the mail each month. IRMAA is paid directly to Social Security.
Need Help?
Speak to a licensed insurance agent who specializes in Medicare insurance. You can reach a member of our award-winning team by calling (800) 398-8714 today.
About the Author
Christina Valenzuela is the co-owner of Vista Mutual Insurance Services, an insurance agency that focuses exclusively on the needs of Medicare beneficiaries. She has worked in the Medicare insurance industry since 2006 and is a licensed insurance producer in multiple states.
The information in this document has been gathered from Medicare.gov. Although we strive to be as accurate as possible, any differences between this document and the information on Medicare.gov will be governed by the information on Medicare.gov.
