Medicare IRMAA is an addition to your monthly Medicare Part B or Part D premium, that Medicare beneficiaries pay based on their income. How much additional cost you will have to pay is determined each year by the Centers for Medicare & Medicaid Services.
IRMAA is an acronym for income-related monthly adjustment amount. Depending on your income, you may be charged for IRMAA Part B and/or IRMAA Part D. This applies to Medicare beneficiaries with a higher income. IRMAA only applies to you if you are receiving Medicare Part B or Medicare Part D benefits.
The income-related monthly adjustment amount went into effect in 2003. It is a provision of the Medicare Modernization Act. This article only applies to beneficiaries of Medicare Part B with a high income. However, in 2011, it was expanded under the Affordable Care Act. It now also includes beneficiaries of Medicare Part D.
The Centers for Medicare & Medicaid Services determines whether you qualify by finding your modified adjusted gross income, also called your MAGI. Your modified adjusted gross income is different from your adjusted gross income. There are 5 income tiers that are used to determine qualification and the cost of your individual-related monthly adjustment amount.
Your payments are based on your income from the prior two years. According to the Social Security Administration, the IRMAA 2018 cost will not change for the 2019 year. Your cost for IRMAA Part B will be determined the following way.
The IRMAA 2018 prices will not change for IRMAA Part D during the 2019 year. For IRMAA Part D Part your cost will be determined the following way.
According to the Centers for Medicare & Medicaid Services calculations, only individuals who earn more than $85,000 and married couples filing jointly who earn more than $170,000 are required to pay the income-related monthly adjustment amount. Medicare IRMAA affects less than 5 percent of Medicare beneficiaries. Not many Medicare beneficiaries will have to worry about Medicare IRMAA expenses.
IRMAA applies for those with Original Medicare, or a Medicare plan that provides prescription drug coverage. Your qualification is determined by the income you reported on your tax return. It should not be confused with paying a penalty for late enrollment.
IRMAA payments may be taken from your Social Security check. However, if they’re not, you should receive a bill from Medicare or the Railroad Retirement Board. The bill will be a Notice of Medicare Premium Payment Due that you will be responsible for.
