Some people will see a slight increase in their 2025 Income-Related Monthly Adjustment Amount (IRMAA) payments.  However, due to the annual inflation adjustments, people with reported income (MAGI) at the bottom of a bracket last year will now be at the top of the lower bracket -- they will move down one bracket.  The people moving to a lower bracket could see a decrease of about $12 to $19 in their IRMAA payments (see comparison chart below).

For example, if your 2023 income was $105,000 (filing individual), your 2024 Part D IRMAA payment is an additional $12.90 per month and Part B IRMAA is $69.90.  In 2025, with the inflation adjustment to the IRMAA brackets, you will no longer have a Part D or Part B IRMAA payment.

Most other Medicare Part D beneficiaries earning over $106,000 individually or over $212,000 for couples filing joint will see a small increase in their Part D IRMAA payments.  Medicare Part D IRMAA affects roughly 8 percent of Medicare Part D beneficiaries.



The 2025 Medicare Part D Income Related Monthly Adjustment Amounts (IRMAA) compared to previous years.

With the adjustments in the IRMAA income brackets in the early years and the inflation adjustments since 2021, the year-to-year IRMAA payment comparison has become rather complex.  The chart below illustrates the changes in IRMAA payments and income brackets since the beginning of the Part D IRMAA payments in 2011.

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:



A few important notes and reminders about IRMAA:

• Who collects IRMAA?
  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.
  
  
• Which taxes are use? 
  2025 IRMAA is calculated using the most recent tax returns available to the IRS - this would be your 2023 tax return that was filed in 2024.
  
  
• What is considered income?
  "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.
  
  
• How is IRMAA paid?
  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 for the unpaid balance of your IRMAA payment.
  
  
• How will you be notified about your Part D IRMAA payment?
  Medicare Part D beneficiaries affected by the 2025 IRMAA will receive a letter from the Social Security Administration notifying them of their IRMAA payment.
  
  
• What happens if you don't pay Part D IRMAA?
  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.
  
  
• Remember:  You pay IRMAA even if you have a Medicare Advantage plan that includes drug coverage (MAPD).
  If you are a higher-earning Medicare beneficiary, you will find that Part D IRMAA payments are required whether you receive your Medicare Part D coverage through a stand-alone Medicare Part D plan (PDP) or through a Medicare Advantage plan that includes prescription drug coverage (MAPD).
  
  

As background, Medicare Part D IRMAA payments can change every year and are calculated using the annually-released standard base Medicare Part D premium.  The 2025 standard base premium is $36.78, an increase of $2.08 or roughly 6% higher than the 2024 standard base premium.

2025 Medicare Part B Income-Related Monthly Adjustments Amount (IRMAA)

People with Medicare who have higher incomes will also pay a separate IRMAA for their Medicare Part B (out-patient) coverage.


See chart above in Part D section for changes in IRMAA brackets for 2025.




Appealing your IRMAA?

If you believe you have been wrongly charged IRMAA or have had a change in income, you have the right to appeal your IRMAA or ask for a reassessment.  See our IRMAA FAQ: "How is the income-related monthly adjustment amount or IRMAA affected if my income goes down?" at: Q1FAQ.com/542