Understanding IRMAA for High Income Earners
IRMAA is an acronym for Medicare’s Income-Related Monthly Adjustment Amount. A higher premium is charged by Medicare for Part B and Part D monthly premiums to individuals with higher incomes. This has nothing to do with your Supplement or Medicare Advantage plan premiums.
The 2022 IRMAA amount is based on your 2020 Tax Return!
Please note that filing “Married Separately” is NOT helpful.
2020 Income IRMAA brackets for both Part B and Part D are shown here:
|Single||Married Filing Jointly||Married Filing Separately||Part B Premium||Part D IRMAA|
|$91,000 or less||$182,000 or less||$91,000 or less||$170.10||$0 + your plan premium|
|$91,000 to $114,000||$182,000 to $228,000||N/A||$238.10||12.40 + your plan premium|
|$114,000 to $142,000||$228,000 to $284,000||N/A||$340.20||$32.10 + your plan premium|
|$142,000 to $170,000||$284,000 to $340,000||N/A||$442.30||$51.70 + your plan premium|
|$170,000 to $500,000||$340,000 to $750,000||$91,000 and under $409,000||$544.30||$71.30 + your plan premium|
|$500,000 +||$750,000 +||$409,000 +||$578.30||$77.90 + your plan premium|
How do I pay my IRMAA Part D and the Medicare IRMAA for Part B?
Your Part B IRMAA is added to your Part B premium automatically and the amount will be reflected in your monthly premium bill. Most people have their premiums automatically deducted from their Social Security or Railroad Retirement Board benefits each month. If you are not currently receiving retirement benefits each month, you can pay your bill online through your bank or financial institution, or sign up for Medicare Easy Pay and have your payments automatically deducted from your checking or savings account.
IRMAA Part D payments are paid separately to Medicare, and you must pay them even if your employer or another third party (such as retirement system) pays your Part D plan premiums. You’ll get a Medicare Premium Bill each month for your Part D IRMAA and you can pay it in the same way you pay your Part B premiums. You do not pay it to your prescription drug plan.
Keep in mind that Medicare treats IRMAA payments the same as other premium bills, which means that if you don’t make your payments on time each month, you could lose your coverage.
Contact me if your income no longer reflects prior year’s income. I can provide a form to “Appeal” the increase or go to https://www.ssa.gov/forms/ssa-44-ext.pdf
Contact your Financial Advisor or CPA to help you shelter your income when possible!