The Income-Related Monthly Adjustment Amount (IRMAA) is an additional charge applied to Medicare Part B and Part D premiums for individuals with higher incomes. This surcharge is based on your Modified Adjusted Gross Income (MAGI) as reported on your tax return from two years prior.
Key Points about IRMAA:
- Who Pays IRMAA?
- Individuals earning above certain income thresholds. For 2025, the income threshold is $106,000 for individuals or $212,000 for joint filers.
- How It Works:
- Medicare uses income information from the IRS to determine if you owe IRMAA. The surcharge is added to your standard Medicare premium.
- There are different tiers of IRMAA, with higher income levels resulting in higher additional amounts.
- Affected Parts:
- Medicare Part B: Covers doctor visits and outpatient care.
- Medicare Part D: Covers prescription drugs.
- Example of IRMAA Costs (2025):
- Standard Medicare Part B premium: $185.
- With IRMAA: If your income is in a higher bracket, you could pay an additional $67–$395 per month (or more) on top of the standard premium.
- Adjustments and Appeals:
- If your income decreases due to life events (e.g., retirement, divorce, loss of income), you can request a review or appeal the IRMAA determination using Form SSA-44.
IRMAA ensures that individuals with higher incomes contribute more to the Medicare program. If you think you’ve been assessed IRMAA in error, the Social Security Administration (SSA) is the place to address disputes or appeals.