Medicare’s Income-Related Monthly Adjustment Amount (IRMAA)

Medicare’s Income-Related Monthly Adjustment Amount (IRMAA) is an additional charge that some beneficiaries must pay in addition to their standard Medicare Part B and Part D premiums. This adjustment is based on the beneficiary’s income, with higher-income individuals and couples paying higher premiums. Here’s how it works:
Determination of IRMAA
1. Income Assessment: The Social Security Administration (SSA) determines if you need to pay IRMAA based on your reported income from two years prior. For example, your 2024 IRMAA would be based on your 2022 tax return.
2. Income Thresholds: IRMAA applies if your modified adjusted gross income (MAGI) exceeds certain thresholds. These thresholds are adjusted annually.
Income Brackets and Premiums
For 2024, the income thresholds and corresponding IRMAA amounts are as follows:
Medicare Part B
• Individuals with income of $103,000 or less / Couples with income of $206,000 or less: No IRMAA, pay the standard Part B premium.
• Individuals with income above $103,000 / Couples with income above $206,000 Pay higher Part-B Premium.
Medicare Part D
IRMAA for Part D is an additional charge on top of your plan premium:
• Individuals with income of $103,000 or less / Couples with income of $206,000 or less: No IRMAA.
• Individuals with income above $103,000 / Couples with income above $206,000 Pay higher Part-D Premium
Notification and Appeal
• Notification: If you are subject to IRMAA, you will receive a letter from the SSA notifying you of the additional charges.
• Appeal: If you believe the SSA’s determination is incorrect, you can file an appeal, especially if your income has decreased due to certain life-changing events (e.g., retirement, marriage, divorce).
Conclusion
IRMAA is designed to require higher-income beneficiaries to contribute more to the cost of Medicare. It ensures that those with greater financial resources help subsidize the program, making it more sustainable for everyone.