Medicare Part B and Part D IRMAA

The income-related monthly adjustment amount , or IRMAA , is a surcharge that high-income people may pay in addition to their Medicare Part B and Part D premiums . In the Bay Area , it ' s not uncommon for people to have this IRMAA surcharge applied to their Medicare premiums because we have higher incomes than many places in the country . I know it doesn ' t seem fair because our cost of living is much higher too . I don ' t make the rules , I just relay them .

The Social Security Administration determines whether you ' re subject to IRMAA based on your income reported on your tax return from two years ago . For example , your 2023 premiums are based on your 2021 tax return , assuming you have already filed your 2021 return . The IRMAA is calculated and adjusted each year . For Part B IRMAA , Social Security collects this amount directly , either by deduction from your Social Security check , or by invoicing you directly .

The income brackets that Social Security uses to determine the IRMAA are as follows :

What if you don ' t agree with the number they calculate or if you no longer make this amount ?

It is not uncommon to make less money after you retire , so if Social Security is charging you based on your previous employment amount , you can appeal their decision and have them review your account to lower the IRMAA . Many of our clients have been able to get their amounts adjusted to the standard rate or a lower bracket after retiring . On the letter they provide you , they advise you where to call to appeal it . You can always call your local Social Security office .

IRMAA on Part D premiums are typically collected by the Part D insurance carrier , not by Social Security . They will add the amount to your Part D premium .

If you are confused by this information , you are not alone ! So many folks coming into the Medicare system are very confused by all this information . After all , it ' s new to you , so don ' t be so hard on yourself .

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We can help put your mind at ease and our services are always free . If you ’ d like our help , you can email us at : michele @ mcinsuranceservices . com , call our office ( 408-848-2271 ) to schedule a free consultation , or use the QR Code to visit our website .

We do not offer every plan available in your area . Any information we provide is limited to those plans we do offer in your area . Please contact Medicare . gov or 1-800-MEDICARE to get information on all of your options .

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