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What is IRMAA in 2023

By February 17, 2023December 24th, 2023No Comments

What is IRMAA in 2023?

IRMAA, or the Income-Related Monthly Adjustment Amount, is a surcharge that can be added to your Medicare Part B and Part D premiums if you have a higher income. Medicare is a federal health insurance program that provides coverage to people who are 65 or older, as well as those who have certain disabilities or medical conditions.

Most people pay the standard premium for Medicare Part B and Part D. However, for those with a higher income, the IRMAA surcharge may apply. This means that the amount you pay for your Medicare premiums may be higher than the standard premium.

The IRMAA surcharge is calculated based on your income reported to the IRS from two years prior. For example, your 2023 IRMAA would be based on your 2021 income tax return. If your income exceeds a certain threshold, you will be required to pay an additional amount on top of the standard Medicare premium.

The amount of the IRMAA surcharge depends on your income. There are five different income brackets, each with a different surcharge amount. The surcharge ranges from $12.40 to $356.40 per month for Part B, and $12.30 to $77.10 per month for Part D.

It’s important to note that the IRMAA surcharge only applies to individuals with higher incomes. For 2023, the income threshold for individuals is $91,000, and for couples filing jointly, it is $182,000. If your income falls below these thresholds, you will not be subject to the IRMAA surcharge.

If you are subject to the IRMAA surcharge, the additional amount will be added to your Medicare premium and deducted from your Social Security check or billed directly to you if you do not receive Social Security benefits.

In summary, IRMAA is a surcharge that applies to Medicare Part B and Part D premiums for individuals with higher incomes. The amount of the surcharge depends on your income and can range from $12.40 to $356.40 per month for Part B and $12.30 to $77.10 per month for Part D.

Dan McGrath