IRMAA stands for “Income-Related Monthly Adjustment Amount.” It is an additional charge that some Medicare beneficiaries must pay for the Medicare Part-B and Part-D premiums.
The IRMAA is based on your income as reported to the IRS on your tax return from two years prior. If your income is above a certain level, you may have to pay an additional premium each month on top of the standard Part-B & Part-D premiums.
IRMAA is designed to help Medicare cover the cost of providing benefits. It is important to realize that IRMAA is not a penalty or a tax. It is an additional cost of Medicare coverage for those that can afford to pay more.
If you are required to pay the IRMAA and your income or financial situation changes, you may be able to to the IRMAA amount adjusted or eliminated by submitting a request to CMS. You will need to use the for SSA-44 and it can be found here.
For Medicare beneficiaries that are not receiving Social Security or Railroad Retirement Board benefits who are also required to pay the IRMAA, in addition to receiving a bill for your Part-A & Part-B, you will also receive a bill for your Part-D. This premium will be paid monthly, like your Part-A. Just like with original Medicare, if you do not pay the IRMAA premium, you will be disenrolled from Medicare, which can result in gaps of coverage and costly penalties & fees. Information on how to pay these premiums can be found here.
Below are the charts for 2024 showing the IRMAA charges based on income levels.
There is also a charge for Part D prescription drug plans. The adjusted amount is added to the premium for either your standalone Part D plan or the premium of your Part D plan attached to a Medicare Advantage plan.
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