How is the income-related monthly adjustment amount or IRMAA affected if my income goes down?

You can ask the Social Security Administration (SSA) to reconsider your income-related monthly adjustment amount or IRMAA based on events that might be considering life-changing events.  In addition, the Social Security Administration may also make a new initial determination of your IRMAA based on a few other specific events.

As background, if you are a higher-earning Medicare beneficiary you may be required to pay an additional monthly cost for your Medicare Part D (and Medicare Part B) coverage.  The amount of your IRMAA payment can change every year and is calculated by the Social Security Administration using your most recent federal income tax returns.  In other words, your current Part D (and Part B) IRMAA is determined by your income from two years ago.

For example, your 2026 Income Related Monthly Adjustment Amount (IRMAA) is based on your most recent tax return that the IRS provides to the Social Security Administration (SSA).  In general, the IRS will report the financial information provided on your 2024 federal tax return that was filed in 2025.  However, in some cases, the SSA can determine your IRMAA using an earlier tax return.  For example, your 2026 IRMAA may be determined using your 2023 Federal tax return, if 2024 is not available.

As noted by the Social Security Administration:

If your income has gone down due to any of the following situations and the change makes a difference in the income level considered by the Social Security Administration, contact the Social Security Administration and explain that you have new information and may need a new decision about your income-related monthly adjustment amount based on the following:

• You married, divorced, or became widowed;
• You or your spouse stopped working or reduced your work hours;
• You or your spouse lost income-producing property due to a disaster or other event beyond your control;
• You or your spouse experienced a scheduled cessation, termination, or reorganization of an employer’s pension plan; or
• You or your spouse received a settlement from an employer or former employer because of the employer’s closure, bankruptcy, or reorganization.

If any of the above applies to you, the Social Security Administration needs to see documentation verifying the event and the reduction in your income. The documentation you provide should relate to the event and may include a death certificate, a letter from your employer about your retirement, or something similar. If you filed a Federal income tax return for the year in question, you need to show the Social Security Administration your signed copy of the return.

And as noted above, there are also additional limited situations where a Medicare beneficiary may ask for a new initial IRMAA determination for other reasons, such as:
What to do if you wish to ask for a new initial IRMAA determination or an IRMAA reconsideration?

If you decide to ask for an IRMAA reconsideration, you can make an appointment and visit a local Social Security Office and speak with an actual SSA representative so the SSA can best understand your rationale for the change in IRMAA - be sure to come prepared to explain your situation with documentation supporting the reconsideration.

You can also call a Social Security representative at 1-800-772-1213 (TTY 1-800-325-0778).

You can also download the reconsideration form “Medicare Income-Related Monthly Adjustment Amount - Life-Changing Event” here:  https://www.ssa.gov/forms/ssa-44.pdf 


You can read more and see the most recent IRMAA information in our latest this site News
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