Information on IRMAA: Notices, appeals, and additional details
The Income-Related Monthly Adjustment Amount (IRMAA) is a surcharge added to Medicare Part B and Part D premiums based on an individual's annual income. The Social Security Administration (SSA) calculates the IRMAA yearly and publishes it in the Federal Register.
The IRMAA does not affect Medicare Part A or Medicare Advantage (Part C). However, for Medicare Part D, the surcharge amounts vary based on income bracket and tax filing status, but the costs vary among plans.
The IRMAA is determined by modified adjusted gross income (MAGI) from two years prior. For instance, the MAGI from 2024 applies to 2026 premiums, and the MAGI from 2025 applies to 2027 premiums.
In 2025, for Medicare Part B, the standard monthly premium is $185, and the IRMAA surcharge amounts vary based on income bracket and tax filing status. The following table provides a rough estimate of the 2025 IRMAA brackets:
| Income Range (Single) | Income Range (Married Filing Jointly) | Part B Monthly Premium Estimate | Part D IRMAA Surcharge Estimate | |------------------------------|---------------------------------------|--------------------------------|------------------------------------------| | Up to $106,000 | Up to $212,000 | $185 (standard premium) | Plan premium only | | $106,001 – $133,000 | $212,001 – $266,000 | $259 | $13.70 + plan premium | | $133,001 – $167,000 | $266,001 – $334,000 | $370 | $35.30 + plan premium | | $167,001 – $200,000 | $334,001 – $400,000 | $480.90 | $57 + plan premium | | $200,001 – $500,000 | $400,001 – $750,000 | $591.90 | $78.60 + plan premium | | Above $500,000 | Above $750,000 | $628.90 | $85.80 + plan premium |
These brackets apply per individual, and if both spouses are Medicare beneficiaries, each pays according to their income.
The exact IRMAA brackets for 2026 and 2027 will be published by the Centers for Medicare & Medicaid Services (CMS) late in the preceding year. Any increase in income reported for a given tax year may result in increased premiums two years later, but such IRMAA surcharges can be appealed in cases of permanent income reduction, not usually for one-time spikes.
If a person disagrees with their IRMAA, they can appeal the decision within 60 days of receiving the notice. The appeal process involves contacting the SSA and completing the Medicare IRMAA: Life-Changing Event form, and may require documentation depending on the reasons for the appeal. An individual receives an initial determination around 20 days after the first IRMAA notice, which contains information about paying the surcharge and the appeals process.
To avoid or reduce the IRMAA, a person can lower their Modified Adjusted Gross Income (MAGI) by adding more tax deductions or postponing the claiming of Social Security benefits.
In summary, the IRMAA is a surcharge added to Medicare Part B and Part D premiums based on an individual's annual income from two years prior. The SSA calculates and publishes the IRMAA yearly, and individuals can appeal the decision if they believe incorrect information was used or if they have experienced a life-changing event that affects their income. The exact IRMAA brackets for 2026 and 2027 will be published by CMS, while the 2025 brackets provide a reliable estimate for now.
- To avoid or reduce the IRMAA surcharge, one can consider increasing tax deductions, postponing the claiming of Social Security benefits, or exploring other health-and-wellness practices that might help lower their Modified Adjusted Gross Income (MAGI).
- It's worth noting that the surcharge amounts for Medicare Part D vary among plans, and while the IRMAA does not apply to Medicare Part A or Medicare Advantage, the science behind understanding and managing this surcharge can have a substantial impact on an individual's health insurance costs over time.
