What does IRMAA have to do with Medicare Part B and Part D premiums?

IRMAA stands for Income-Related Monthly Adjustment Amount. It is a provision under Medicare that determines an additional premium amount for Medicare Part B and Part D based on a beneficiary's income. Here's how IRMAA affects Medicare Part B and Part D:

1. Income Bracket Determination: IRMAA determines the income brackets for Medicare Part D premium adjustments. The income used to determine IRMAA Medicare Part B Income-Related Monthly Adjustment Amounts is based on the modified adjusted gross income (MAGI) reported on the beneficiary's tax return from two years prior.

Get FREE help with Medicare plans and comparisons!
No Charge, No Obligation! Call us anytime!

CALL NOW!  813-777-8056

2. Higher Part B & Part D Premiums: If a beneficiary's income exceeds certain thresholds, they are subject to paying an IRMAA-related adjustment to their Medicare Part D premium in addition to the standard premium. This adjustment increases the cost of their Part D coverage.

3. Income-Related Tiers: IRMAA assigns beneficiaries to different income-related tiers, each with a corresponding IRMAA amount. The higher the income, the higher the IRMAA amount, resulting in a Part B & Part D Premiums.

4. Notification and Billing: The Social Security Administration (SSA) sends an annual notice to beneficiaries regarding their IRMAA determination. The Medicare Part B & Part D Premiums plan then bills the beneficiary for the additional IRMAA premium amount along with their regular Part B & Part D Premiums.

5. It's important to note that IRMAA applies to Medicare Part D premiums but not to prescription drug costs (such as copayments or coinsurance) covered by the Part D plan. IRMAA only affects the premium amount paid for Part D coverage.

Beneficiaries who are subject to IRMAA will receive the IRMAA Determination notices from the SSA and will be responsible for paying the additional premium amount as determined by their income bracket. The specific income thresholds and corresponding IRMAA amounts can change annually, so it's crucial for beneficiaries to review the notices and understand how IRMAA affects their Medicare Part D premiums for each calendar year.