Income related monthly adjustment amount (IRMAA) for Medicare

If you have Medicare Part B and/or Medicare Part D (prescription drug coverage), you could owe a monthly surcharge based on your annual income.1

Let’s explore the details of the income related monthly adjustment amount (IRMAA) for Medicare.

What is IRMAA?

IRMAA is a surcharge that people with income above a certain amount must pay in addition to their Medicare Part B and Part D premiums.

The Social Security Administration (SSA) determines who pays an IRMAA based on the income reported 2 years prior. So for 2021, the SSA looks at your 2019 tax returns to see if you must pay an IRMAA.2

IRMAA is calculated every year. That means if your income is higher or lower year after year, your IRMAA status can change. If the SSA determines you must pay an IRMAA, you’ll receive a notice with the new premium amount and the reason for their determination.3

Income brackets for Part B and Part D IRMAA

For 2021, the income brackets for Part B and Part D are the same. Here’s a chart explaining how income affects the Part B premium and Part D IRMAA.4

Single Married Filing Jointly Married Filing Separately Part B Premium Part D IRMAA $88,000 or less $176,000 or less $88,000 or less $148.50 $0 + your plan premium $88,001 to $111,000 $176,001 to $222,000 N/A $207.90 $12.30 + your plan premium $111,001 to $138,000 $222,001 to $276,000 N/A $297.00 $31.80 + your plan premium $138,001 to $165,000 $276,001 to $330,000 N/A $386.10 $51.20 + your plan premium $165,001 and under $500,000 $330,001 and under $750,000 $88,001 and under $412,000 $475.20 $70.70 + your plan premium $500,000 or above $750,000 and above $412,000 and above $504.90 $77.10 + your plan premium
Note: If you pay a late enrollment penalty, these amounts may be higher.

How to pay your Part B and Part D IRMAA

Part B IRMAA is automatically added to your monthly premium bill.5 Here are 4 ways you can pay your Part B premium:6


Part D IRMAA must be paid directly to Medicare—not your plan or employer. It’s your responsibility to pay it even if your employer or a third party (e.g., retirement system) pays your Part D plan premiums. You’ll get a bill each month from Medicare for your Part D IRMAA and can pay it the same way you pay your Part B premiums.7

How to appeal an IRMAA

If you disagree with an IRMAA notice you’ve received, you can appeal it for several reasons. One reason is the tax information used by the SSA to decide the IRMAA may have been incorrect or outdated. Another reason is you experienced a life changing event such as a loss of income, death of a spouse, marriage or divorce.8

You have 60 days from receiving a notice to file an appeal. To get started, contact the SSA at 800-772-1213 (TTY: 800-325-0778).9

Learn more about Medicare

For more helpful information on Medicare, check out these 10 frequently asked questions about Medicare plans.

Sources

  1. “Premiums: Rules for Higher-Income Beneficiaries,” SSA.gov, last accessed April 19, 2021, https://www.ssa.gov/benefits/medicare/medicare-premiums.html, opens new window.
  2. “Premiums: Rules for Higher-Income Beneficiaries.”
  3. “Premiums: Rules for Higher-Income Beneficiaries.”
  4. “What Is IRMAA? What You Need to Know About Income-Based Surcharges,” last accessed April 19, 2021, https://www.healthline.com/health/medicare/what-is-irmaa, opens new window.
  5. “Part B costs,” Medicare.gov, last accessed April 19, 2021, https://www.medicare.gov/your-medicare-costs/part-b-costs, opens new window.
  6. “Pay Part A & Part B premiums,” medicare.gov, last accessed April 19, 2021, https://www.medicare.gov/your-medicare-costs/pay-part-a-part-b-premiums, opens new window.
  7. “Monthly premium for drug plans,” Medicare.gov, last accessed April 29, 2021, https://www.medicare.gov/drug-coverage-part-d/costs-for-medicare-drug-coverage/monthly-premium-for-drug-plans, opens new window.
  8. “What to know about IRMAA: Notice, appeals, and more,” MedicalNewsToday, last accessed April 19, 2021, https://www.medicalnewstoday.com/articles/how-to-avoid-irmaa, opens new window.
  9. “What to know about IRMAA: Notice, appeals, and more.”

Humana answers your Medicare questions

How can we help?

Call us

Licensed Humana sales agents are available daily,
8 a.m. to 8 p.m., local time.

1 - 888 - 204 - 4062 (TTY: 711)

See plans in your area

Enter your ZIP code below to see plans with their premiums, copays, and participating doctors and pharmacies.

Request a call

Our licensed Humana sales agents are available to help you select the coverage that best meets your needs.