What is IRMAA?

IRMAA stands for Income Related Monthly Adjustment Amount. In short, IRMAA is a potential extra charge added to your Medicare Part B or Part D premium that is determined based on your income.

In 2022, the standard Medicare Part B premium amount is $170.10. Most people pay that standard Part B premium amount. However, if your modified adjusted gross income (as reported on your IRS tax return from 2 years ago) is above a certain amount, you’ll pay the standard premium amount as well as an Income Related Monthly Adjustment Amount (IRMAA).

IRMAA and Medicare Part D Drug Coverage

If you have a higher income, you might pay more for your Medicare Part D drug coverage. If your income is above a certain limit ($91,000 if you file individually or $182,000 if you’re married and file jointly), you’ll pay an extra amount in addition to your plan premium. This is sometimes called Part D-IRMAA.

You’ll also have to pay this extra amount if you’re in a Medicare Advantage Plan that includes drug coverage. This doesn’t affect everyone – in fact, most people won’t have to pay an extra amount. Social Security will contact you if you have to pay an IRMAA based on your income.

If you are instructed to pay a higher amount for your Part B & Part D premium and you disagree with that determination (for example, if your income has gone down since the tax return the IRMAA is based on), you may request a reduction in your income-related monthly adjustment amount. With questions or for more information, contact Twin City Underwriters today.

Source: Medicare.gov

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