Did you know that you could pay more for Medicare based on your income?
This is called IRMAA fees. Below is a overview of what IRMAA is and if you fall into the category of paying more each month for your Medicare.
- What is IRMAA
- How is IRMAA Calculated?
- IRMAA Rates for 2022
- Projected IRMAA Rates for 2023
- Appealing IRMAA Fees
What is IRMAA?
IRMAA stands for “Income-Related Monthly Adjusted Amount” and this is an additional surcharge for higher-income beneficiaries. The government believes that higher-income individuals can afford to pay more for their Medicare premiums, therefore this charge is added to the monthly Medicare Part B and Medicare Part D premiums.
How is IRMAA Calculated?
IRMAA is determined through your taxes and your Adjusted Gross Income. IRMAA goes back two years to determine your surcharge. For example, your 2023 Medicare Part B and D premiums will be based on your tax return from 2021.
IRMAA Rates for 2022
In 2022, Medicare Part B saw a high increase of premium of 14.5% (jumping from $148.50 in 2021 to $170.10). Which led to higher premiums for higher-income beneficiaries.
There are five IRMAA income brackets depending on your income and filing status.
Here are the brackets for 2022:
| Individual | Married Filing Jointly | Married Filing Separate | Part B Monthly Premium | Part D Monthly Premium |
| $91,000 or less | $182,000 or less | $91,000 or less | $170.10 | Your Premium Only |
| Above $91,000 – $114,000 | Above $182,000 – $228,000 | N/A | $238.10 | Plan Premium + $12.40 |
| Above $114,000 – $142,000 | Above $228,000 – $284,000 | N/A | $340.20 | Plan Premium + $32.10 |
| Above $142,000 – $170,000 | Above $284,000 – $340,000 | N/A | $442.30 | Plan Premium + $51.70 |
| Above $170,000 – $500,000 | Above $340,000 – $750,000 | Above $91,000 and less than $409,000 | $544.30 | Plan Premium + $71.30 |
| Greater than $500,000 | Greater than $750,000 | $409,000 or more | $578.30 | Plan Premium + $77.90 |
Appealing IRMAA Fees
Since the 2023 IRMAA fees will be based off your 2021 Adjusted Gross Income, you can appeal these fees if you’ve had a “life-changing” event.
For example, if you or your spouse have retired and your income has significantly decreased, you can appeal these fees through the Social Security Administration.
Other “life-changing” events include:
- Work stoppage or reduction.
- Marriage, divorce or being widowed.
- Loss of income-producing property.
- Changes or termination of a pension.
- Receipt of a settlement from an employer due to company closure or bankruptcy.
You can appeal these by completing the Social Security Administration form SSA-44.
Follow A Proven Process
If you’re joining Medicare for the first time, we recommend you follow a proven process we cover here at The Medicare Coach to ensure that you’re making the RIGHT Medicare decision for you. Our proven process has helped over 100,000 people easily make their Medicare decision.
Medicare advertisements and insurance companies don’t fully share the costs and details associated with their plans, which can lead to regret and threaten your hard-earned retirement savings.
We’re your Medicare advocate to help you get the best health care at your lowest costs without influence of insurance companies, agents, or brokers.
If you’re looking for help on appealing your IRMAA fees, or needing unbiased help in making your Medicare decision, be sure to register for our FREE online Medicare workshop.
