What is a Medicare Part B and Part D IRMAA?

The income-related monthly adjustment amount, or IRMAA, is a surcharge that high-income people pay in addition to their Medicare Part B and Part D premiums.

Social Security makes the determination about whether you’re subject to IRMAA based on your income reported on your tax return from two years ago. For example, your 2023 premiums are based on your 2021 tax return, assuming you have already filed your return.  The IRMAA is calculated and adjusted each year.  For Part B IRMAA, Social Security collects this amount directly, either by deduction to your Social Security check, or by invoicing you for three months at a time.

The income brackets that Social Security uses to determine the IRMAA are as follows:

What if you don’t agree with the number they calculate or if you no longer make this amount?

It is not uncommon to make less money after you retire, so if Social Security is charging you based on your previous employment amount, you can appeal their decision and have them review your account to lower the IRMAA.  On the letter provided to you, you are advised to contact them if you do not agree with the income they are using.  You can also request them to take into consideration a “life-changing event” that may have impacted your income.  There is an appeal process, but you can start by calling the local Social Security office.

IRMAA on Part D premiums is typically collected by the Part D Insurance Carrier, not by Social Security. They will add the amount to your Part D premium.

If you are confused by this information, you are not alone!  So many folks coming into the Medicare system are very confused by all this information.  After all, it’s new to you so don’t be so hard on yourself.

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