Have you been surprised by a higher-than-normal Medicare Part B and Medicare Part D bill? This premium increase is likely due to your “Income Related Monthly Adjustment Amount (IRMAA)” fee.
- What is IRMAA?
- IRMAA Rates for 2025
- Who can appeal IRMAA?
- How to appeal IRMAA?
What is IRMAA?
IRMAA stands for “Income-Related Monthly Adjustment Amount,” and this is an additional fee for higher-income beneficiaries. The government believes that higher-income individuals can afford to pay more for their Medicare premiums. Therefore, this fee is added to the monthly Medicare Part B and Medicare Part D premiums.
This fee only applies if your annual Modified Adjusted Gross Income (MAGI) exceeds a predetermined amount. This predetermined amount is calculated from your Modified Adjusted Gross Income (MAGI) from your taxes two years ago. Therefore, your 2025 IRMAA fee will be calculated from your 2023 tax return.
IRMAA Rates for 2025
There are five IRMAA income brackets depending on your income and filing status. The standard Medicare Part B premium for 2025 is $174.70/month.
Here are the brackets for 2025:
| 2022 Individual tax return | 2022 Joint tax return | 2022 Married & filing separate | 2024 Part B premium | 2024 Part D premium |
| $103,000 or less | $206,000 or less | $103,000 or less | $174.70/month | Your plan premium |
| $103,001 – $129,000 | $206,001 – $258,000 | N/A | $244.60/month | Your plan premium + $12.90 |
| $129,001 – $161,000 | $258,001 – $322,000 | N/A | $349.40/month | Your plan premium + $33.30 |
| $161,001 – $193,000 | $322,001 – $386,000 | N/A | $454.20/month | Your plan premium + $53.80 |
| $193,001 – $500,000 | $386,001 – $750,000 | $103,001 – $397,000 | $559.00/month | Your plan premium + $74.20 |
| More than or equal to $500,000 | More than or equal to $750,000 | More than or equal to $397,000 | $594.00/month | Your plan premium + $81.00 |
Who can appeal IRMAA?
If your income has decreased and you have a qualifying event, you can ask Medicare to review your situation to eliminate or reduce your income fee.
There are multiple types of events that allow you to get your IRMAA fee adjusted, including:
- Marriage
- Divorce/Annulment
- Death of Your Spouse
- Work Stoppage
- Work Reduction
- Loss of Income-Producing Property
- Loss of Pension Income
- Employer Settlement Payment
Each individual must appeal their income, so if you are married, each of you must submit the IRMMA appeal form for Medicare’s review.
For example, our clients Bob and Jan are married and file taxes jointly. They received a letter that they have a 2025 IRMAA fee because their 2023 income was $225,000. However, since 2023, Jan has retired, so their income has decreased to approximately $175,000. Jan’s retirement is a qualifying event, so Jan and Bob both completed the IRMAA appeal form. After submitting the form, Medicare/Social Security confirmed they qualify for the elimination of their IRMAA fee and will pay the standard Medicare Part B and Medicare Part D premiums.
Additionally, if your appeal is approved, you may qualify to get a refund or credit on the premiums you may have overpaid for due to the IRMAA fee.
Please know that many of our clients who have a high income from events such as selling investments (stocks or bonds), Roth IRA conversions, or other non-qualifying events will likely be unable to adjust their IRMAA fee. However, if you have a separate qualifying event at the same time, such as retirement, you can still appeal the IRMAA fee.
How to appeal IRMAA?
Medicare requires you to complete a specific form to request a review of your IRMAA fee.
You can appeal these by completing the Social Security Administration form SSA-44.
Most of the form is very self-explanatory, but:
- Step 1 will be your qualifying event, which for most people is either “Work Stoppage” or “Work Reduction.” Please provide the date this event occurred.
- Step 2 should be your 2024 income showing your retirement, and
- Step 3 should be your estimated 2025 income. This is an approximate number, so it doesn’t need to be exact.
This form needs to be submitted to your local Social Security office.
Some offices want the form faxed in, while others want it submitted in person. Therefore, we recommend you contact your local office to confirm how they wish to receive it.
You can find your local office number here: https://secure.ssa.gov/ICON/ic001.action
Note: If you cannot speak to your local office or the wait time is too long, we recommend faxing the form to the local office to the fax number found at the link above. Make sure you save your fax receipt as proof and contact your local Social Security office four weeks later to confirm they received the form. Finally, if you decide to fax in your form and don’t have access to a faxing service, many online fax services offer a free trial, including efax.com, myfax.com, and faxzero.com.
In summary, if you will be subject to an IRMAA fee, we recommend appealing this fee if you have a qualifying event. Doing so can save you thousands of dollars each year.
