IRMAA stands for Income Related Monthly Adjustment Amount. This is an additional Part B and Part D payment that Medicare recipients must pay if they are higher income earners.
What determines if someone is a high income earner?
Centers for Medicare Services are going to look at your Adjusted Gross Income and they always look back two years.
If you were a joint tax filer and your AGI is above $170k then you are considered a high income earners.
If you file a single tax return and your AGI is above $85k then you are considered a high income earner.
Here are the corresponding IRMAA for Part B (2018) that you will pay based on your income:
If you are in a higher income bracket, then Medicare is also going to be charging you additional premiums for your Part D prescription drug plan also. Here are the corresponding amounts for Part D IRMAA (2018):
Usually, people start to research what IRMAA is when they receive a letter from Social Security that they will be charged extra for their Medicare premiums. Not fun!
If someone has an IRMAA but has also had a recent life changing event, there are ways to get your IRMAA reduced!! You can see the video I made on this here: https://www.youtube.com/watch?v=YDgeagDtgxo
I hope this helps clear up some of the confusion on IRMAA.
If you would like more information on Medicare, request a copy of The Nuts & Bolts of Medicare book here and we will mail it out to you!
If You Would Like to Have Your Own Personal Independent Medicare Agent that specializes in California, request a consultation here!
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