The IRMAA, or income-related monthly adjustment amount, is a levy on Medicare Part B (medical insurance) and Part D prescription drug plans. It is only applicable to Medicare enrollees with a modified adjusted gross income of more than $97,000 for an individual return or $194,000 for a joint return. If your profits are less than this amount, IRMAA does not apply to you.

How is the Medicare IRMAA calculated?

The Medicare IRMAA for Part B and Part D is computed on a sliding scale and is depending on your income. Medicare utilizes the adjusted gross income amount reported on your IRS tax return from two years earlier to the current year to determine if IRMAA costs apply to you.

How much will I have to pay if I owe Medicare IRMAA?

The ultimate IRMAA determination is based on your income and tax filing status. Here's how it works.

Medicare Part B IRMAA

If you are subject to the Part B IRMAA, the amount you owe will be added to your Part B premium, which will be $164.90 per month in 2023 for most people.

Beneficiaries whose 2021 income was more than $97,000 (individual return) or $194,000 (joint return) will pay a premium ranging from $230.80 to $560.50, depending on income, in 2023.

2023 Medicare Part B IRMAA for immunosuppressive drug coverage only

Medicare beneficiaries who are ineligible for Medicare because they are 36 months post-kidney transplant can continue to get Part B coverage of immunosuppressive medicines if they pay a premium beginning in 2023. In 2023, the Part B premium for immunosuppressive medications alone is $97.10 per month. These subscribers are also covered by Medicare Part B IRMAA.

Medicare Part D IRMAA

Beneficiaries whose 2021 income exceeds $97,000 (individual return) or $194,000 (joint return) will pay an additional sum in 2023, on top of monthly premiums ranging from $12.20 to $76.40, depending on income.

Do I still have to pay the IRMAA if I choose Medicare Advantage?

Some people believe that by enrolling in Medicare Advantage rather than Original Medicare, they can avoid IRMAA payments. IRMAA, on the other hand, applies to all Medicare beneficiaries whose earnings are sufficient to qualify them. This is due to the fact that in 2023, everyone on Medicare Advantage must pay the Part B premium of $164.90 per month, as well as any applicable IRMAA expenses.

Furthermore, if you have a Medicare Advantage plan that includes prescription medication coverage, the Part D IRMAA applies to you as well.

How do I find out if the Medicare IRMAA applies to me?

You will not have to conduct any inquiry to determine whether you owe IRMAA. Social Security will contact you through the mail.

When you enroll in Medicare, you will be charged the normal Part B premium as well as the cost for your Part D plan until Social Security receives your income data from the IRS. If your income is high enough to qualify for IRMAA, Social Security will send you a predetermination notice. This notification will explain why IRMAA will apply, how this determination was made, and what you should do if any of this information is incorrect or your position has changed.

Following the distribution of the predetermination letter, Social Security will issue you an initial determination notice advising you that you owe IRMAA on your Part B and Part D premiums (if applicable). This notice also explains how the decision was made and what to do if you believe it is incorrect. If you receive an initial determination notification, save it in a secure place.

How do I pay the Medicare IRMAA surcharge?

IRMAA is not included in your health insurance premium, and if you have Medicare Advantage or Part D, you will not pay it directly to your insurance carrier.

If you are receiving Social Security retirement benefits and have your Medicare Part B and Part D (if applicable) premiums taken from your Social Security payment, you do not need to take any action if you owe IRMAA. Your IRMAA will be taken automatically from your Social Security benefit.

If you get Railroad Retirement Board benefits, your Part B and Part D IRMAA are usually withheld from your payout.

If your Medicare premiums are not taken from your Social Security or Railroad Retirement Board benefits, you will be billed for your Part B and Part D IRMAAs.

Can I appeal the Medicare IRMAA if I don't think it applies to me?

You have the right to appeal if you receive a notice that you owe IRMAA and believe it is incorrect. To do so, contact the Social Security Administration and ask for a reconsideration of your first IRMAA determination. This can be done either over the phone at 800-772-1213 or in writing.

To qualify for an IRMAA decision change, you must demonstrate that your tax return was either out of date or erroneous for one of the following reasons, according to HHS.gov:

• There was an inaccuracy in the IRS data.
• The IRS received outdated information, and you'd prefer them to use more recent information.
• A beneficiary modified his or her tax return for the year in which the Social Security Administration made the IRMAA decision.
• Your income has lately fallen significantly as a result of one of the following life-changing events: the death of a spouse, marriage, annulment, or divorce, a reduction or loss of work, a reduction or loss of income from income-generating property, or a reduction or loss of certain forms of pension income.

For more information about Medicare, go to Medicare.gov or contact 800-MEDICARE (800-633-4227, TTY 877-486-2048).