And if you are one of these higher-earning Medicare beneficiaries, you will find that Part D IRMAA is applied when you receive your Medicare Part D coverage either through a stand-alone Medicare Part D plan (PDP) or through a Medicare Advantage plan that includes prescription drug coverage (MAPD). In addition, people with Medicare who have higher incomes also pay a separate IRMAA for their Medicare Part B (out-patient) coverage.
Also starting back in 2011, Medicare Part D IRMAA payments were determined using (5) income levels. These income levels have remained constant. However, the limits of these five income categories will change in 2018 based on the passage of the Medicare Access and CHIP Reauthorization Act of 2015 (the "Doc Fix" law).
Starting in 2018, Medicare Part D beneficiaries formerly in Part D IRMAA level four (4) will be merged into level five (5) and level three (3) will be split into level three (3) and level four (4) - These income level changes can be seen in the following chart and the result is that some people will pay considerably higher IRMAA in 2018 (up to a 58% increase in IRMAA) -- This also applies to Part B IRMAA (Part B section below):
| Beneficiaries who file individual tax returns with income that is: | Beneficiaries who file joint tax returns with income that is: | IRMAA Levels | |
| 2018 | 2017 to 2011 | ||
| Less than or equal to $85,000 | Less than or equal to $170,000 | Level 1 | Level 1 |
| Greater than $85,000 and less than or equal to $107,000 | Greater than $170,000 and less than or equal to $214,000 | Level 2 | Level 2 |
| Greater than $107,000 and less than or equal to $133,500 | Greater than $214,000 and less than or equal to $267,000 | Level 3 | Level 3 |
| Greater than $133,500 and less than or equal to $160,000 | Greater than $267,000 and less than or equal to $320,000 | Level 4 | Level 3 |
| Greater than $160,000 and less than or equal to $214,000 | Greater than $320,000 and less than or equal to $428,000 | Level 5 | Level 4 |
| Greater than $214,000 | Greater than $428,000 | Level 5 | Level 5 |
The 2018 Medicare Part D Income Related Monthly Adjustment Amounts (IRMAA) (and new income levels ) are shown in the charts below. Please note that an individual with MAGI between $133,500 and $160,000 will see a monthly IRMAA increase from $34.20 per month ($410.40 per year) to $54.20 per month ($650.40 per year) - paid in addition to their Medicare Part D premiums and their Medicare Part B premiums and their Medicare Part B IRMAA. The IRMAA increase is also true for people filing taxes jointly with MAGI between $267,000 and $320,000.
| Beneficiaries who file individual tax returns with income (MAGI) that is: | Beneficiaries who file joint tax returns with income that is: | Medicare Part D Income Related Monthly Adjustment Amount | |||||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | ||
| Less than or equal to $85,000 | Less than or equal to $170,000 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Greater than $85,000 and less than or equal to $107,000 | Greater than $170,000 and less than or equal to $214,000 | $13.00 | $13.30 | $12.70 | $12.30 | $12.10 | $11.60 | $11.60 | $12.00 |
| Greater than $107,000 and less than or equal to $133,500 | Greater than $214,000 and less than or equal to $267,000 | $33.60 | $34.20 | $32.80 | $31.80 | $31.10 | $29.90 | $29.90 | $31.10 |
| Greater than $133,500 and less than or equal to $160,000 | Greater than $267,000 and less than or equal to $320,000 | $54.20 | |||||||
| Greater than $160,000 and less than or equal to $214,000 | Greater than $320,000 and less than or equal to $428,000 | $74.80 |
$55.20 | $52.80 | $51.30 | $50.20 | $48.30 | $48.10 | $50.10 |
| Greater than $214,000 | Greater than $428,000 | $76.20 | $72.90 | $70.80 | $69.30 | $66.60 | $66.40 | $69.10 | |
The percentage change in 2017 to 2018 Medicare Part D IRMAA is shown below.
| Beneficiaries who file individual tax returns with income that is: | Beneficiaries who file joint tax returns with income that is: | Medicare Part D Income Related Monthly Adjustment Amount | |||
| 2018 | 2017 | $ Increase |
% Increase |
||
| Less than or equal to $85,000 | Less than or equal to $170,000 | $0.00 | $0.00 | $0.00 | 0% |
| Greater than $85,000 and less than or equal to $107,000 | Greater than $170,000 and less than or equal to $214,000 | $13.00 | $13.30 | $-0.30 | -2.26% |
| Greater than $107,000 and less than or equal to $133,500 | Greater than $214,000 and less than or equal to $267,000 | $33.60 | $34.20 | $-0.60 | -1.75% |
| Greater than $133,500 and less than or equal to $160,000 | Greater than $267,000 and less than or equal to $320,000 | $54.20 | $34.20 | $20.00 | 58.48% |
| Greater than $160,000 and less than or equal to $214,000 | Greater than $320,000 and less than or equal to $428,000 | $74.80 | $55.20 | $19.60 | 35.51% |
| Greater than $214,000 | Greater than $428,000 | $74.80 | $76.20 | $-1.40 | -1.84% |
In addition, the monthly IRMAA rates to be paid by beneficiaries who are married and lived with their spouse at any time during the taxable year, but filed a separate tax return from their spouse, are as follows:
| Beneficiaries who are married but file separate tax returns with income that is: | Medicare Part D Income Related Monthly Adjustment Amount | |||||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
| Less than or equal to $85,000 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Greater than $85,000 and less than or equal to $129,000 | $74.80 | $55.20 | $52.80 | $51.30 | $50.20 | $48.30 | $48.10 | $50.00 |
| Greater than $129,000 | $76.20 | $72.90 | $70.80 | $69.30 | $66.60 | $66.40 | $69.10 | |
A few important notes and reminders:
- The additional monthly Part D income-related adjustment amount is not collected by the Medicare Part D plans, but instead paid directly to the Federal government.
- 2018 IRMAA is calculated using the most recent tax returns available to the IRS - for 2018, this would be your 2016 tax returns that were filed in 2017.
- "Income" for purposes of IRMAA is defined as MAGI or Modified Adjusted Gross Income. MAGI is calculated as your total adjusted gross income (AGI) and tax-exempt interest income.
- The amount of your IRMAA will be directly deducted from your Social Security, Railroad Retirement Board, or Office of Personnel Management benefits.
- If there are not sufficient funds in your government benefits, then Medicare will bill you directly.
- Medicare Part D beneficiaries affected by the 2018 IRMAA will receive a letter from the Social Security Administration notifying them of their Medicare Part D plan premium increase.
- If you do not pay your IRMAA, you will be involuntarily disenrolled from your Medicare Part D or Medicare Advantage plan - and may be without Medicare plan coverage for the remainder of the year.
| Change in the Medicare Part D Base Premium | |||||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| $35.02 | $35.63 | $34.10 | $33.13 | $32.42 | $31.17 | $31.08 | $32.34 |
2018 Medicare Part B Income-Related Monthly Adjustments Amounts (IRMAA) (Updated 11/17/2017)
Please note: People with Medicare who report taxable income above $85,000 a year ($170,000 for people filing jointly) are responsible to cover a larger portion of the cost of their 2018 Medicare Part B coverage and these monthly Medicare Part B premium adjustments range from an additional $53.50 to an additional $294.60 (per month). For 2018, as with Medicare Part D, beneficiaries with income between $133,500 and $214.00 as an individual or $267,000 and $428,000 will see quite substantial increases in 2018 IRMAA as they will move to a higher IRMAA level. See chart above in Part D section for changes in IRMAA levels for 2018.
| If Your Yearly Income Is | Your Monthly Medicare Part B Premium |
2018 Medicare Part B IRMAA |
|
| File Individual Tax Return | File Joint Tax Return | ||
| $85,000 or below (held harmless) | $170,000 or below | about $130.00* | $0.00 |
| $85,000 or below | $170,000 or below | $134.00 | $0.00 |
| $85,001 - $107,000 | $170,001 - $214,000 | $187.50 | $53.50 |
| $107,001 - $133,500 | $214,001 - $267,000 | $267.90 | $133.90 |
| $133,501 - $160,000 | $267,001 - $320,000 | $348.30 | $214.30 |
| above $160,000 | above $320,000 | $428.60 | $294.60 |
Monthly Medicare Part B premiums for Medicare beneficiaries who are married and lived with their spouse at any time during the taxable year, but file separate tax returns, are:
| Beneficiaries who are married and lived with their spouse at any time during the year, but file a separate tax return from their spouse: | 2018 Medicare Part B premium amount |
Medicare Part B IRMAA |
| Less than or equal to $85,000 (held harmless) | about $130.00* | $0.00 |
| Less than or equal to $85,000 | $134.00 | $0.00 |
| Greater than $85,00 | $428.60 | $294.60 |
According to CMS, IRMAA affects less than 5% of Medicare beneficiaries or around 2,450,000 people (other sources claim that 6% of Medicare beneficiaries have income that exceeds the IRMAA limits).
Appealing your IRMAA?
See our IRMAA FAQ: "How is the income-related monthly adjustment amount or IRMAA affected if my income goes down?" at on this site