IRMMA stands for Income-Related Monthly Adjustment Amount. It is an additional charge that some individuals with higher incomes must pay for their Medicare Part B (medical insurance) and Part D (prescription drug coverage) premiums.

The IRMMA is based on your reported income from two years prior and is designed to ensure that higher-income beneficiaries contribute more toward the cost of their Medicare coverage. The amounts can vary based on your income, and they are assessed in addition to the standard premiums for Medicare Part B and Part D.

If your income exceeds a certain threshold, you'll receive a notice from the Social Security Administration (SSA) with the details about your IRMMA and how much you'll need to pay.

Would you like more specific information on how the IRMMA is calculated?

The Income-Related Monthly Adjustment Amount (IRMMA) is determined based on your modified adjusted gross income (MAGI) from two years ago. The Social Security Administration (SSA) uses the income you reported on your tax return to assess whether you will have to pay the additional IRMMA premium.

How is IRMMA Calculated?

The calculation depends on your filing status and MAGI (modified adjusted gross income). The SSA uses MAGI, which includes:

• Your adjusted gross income (AGI) from your tax return

• Tax-exempt interest (from municipal bonds, for example)

The IRMMA is assessed on both Medicare Part B (which covers outpatient care) and Medicare Part D (which covers prescription drugs). If your income exceeds a certain threshold, you’ll pay an additional charge on top of the regular premiums.

Income Thresholds for 2023 (Used to Determine 2025 IRMMA)

The income levels that trigger the IRMMA vary based on whether you file your taxes as an individual or jointly. The SSA reviews your tax return from two years prior, so for 2025, the income threshold will be based on your 2023 tax return.

Here are the income brackets for 2023:

For Individual Filers:

Part B Premium (monthly)Part D Premium (monthly)

$97,000 or lessStandard $174.70No IRMMA

$97,001 - $123,000$243.60$12.20

$123,001 - $153,000$302.50$31.50

$153,001 - $183,000$361.40$50.70

$183,001 - $500,000$420.30$70.00

Over $500,000$479.20$76.40

For Joint Filers:

Part B Premium (monthly)Part D Premium (monthly)

$194,000 or less Standard $174.70No IRMMA

$194,001 - $246,000$243.60$12.20

$246,001 - $306,000$302.50$31.50

$306,001 - $366,000$361.40$50.70

$366,001 - $750,000$420.30$70.00

Over $750,000$479.20$76.40

Example Calculation:

Let’s say you filed taxes as an individual in 2023 and your MAGI for that year was $140,000.

• Part B: Based on the income range for $123,001 - $153,000, your monthly Part B premium would be $302.50.

• Part D: Based on the same income range, your monthly Part D premium would be $31.50 (if you're enrolled in a Part D plan).

So, in this case, you’d pay your standard Part B premium of $174.70 plus the IRMMA charge of $302.50. You'd also pay an additional $31.50 for Part D.

How IRMMA Affects Your Payments:

The additional IRMMA charges are assessed automatically by the Centers for Medicare & Medicaid Services (CMS). These charges will appear on your monthly Social Security or Railroad Retirement Board payments if you receive benefits.

• For people who don’t receive Social Security or Railroad benefits, you'll receive a bill for your Part B premium directly from CMS, which will include the IRMMA charge.

How to Appeal an IRMMA Charge:

If you believe the SSA has used incorrect income information to assess your IRMMA or if your income has significantly changed (e.g., a reduction due to retirement or a life event), you can file an appeal with the SSA.

Some common reasons to appeal include:

• A drop in income due to retirement.

• A divorce or death of a spouse.

• A loss of income due to a job change.

Summary:

• IRMMA is based on MAGI from two years prior.

• It applies to Medicare Part B and Part D premiums.

• Higher-income individuals pay a higher premium.

• Income thresholds determine how much extra you’ll pay for your coverage.

If you'd like help figuring out whether you'll be impacted by IRMMA or need more specific details, feel free to ask!