The amount of the IRMAA payment will depend on the Medicare beneficiary's income level (see charts below). More specifically, Medicare beneficiaries who have a modified adjusted gross income (MAGI) of more than $85,000 for individuals or $170,000 for married couples filing jointly pay an additional Medicare Part B and Medicare Part D Income-Related Monthly Adjustment Amount (IRMAA) based on their income level.
Medicare Part D IRMAA payments can change every year and are calculated using the annually-released standard base Medicare Part D premium. The 2017 standard base premium is $35.63, an increase of $1.53 (4.49%) or roughly 4.5% over the 2016 standard base premium. (The 2017 Medicare Part B IRMAA payments and corresponding income levels are listed below in this same blog.)
| Change in the Medicare Part D Base Premium | ||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| $35.63 | $34.10 | $33.13 | $32.42 | $31.17 | $31.08 | $32.34 |
The 2017 Medicare Part D IRMAA amounts are shown in the charts 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 | ||||||
| 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 |
| Greater than $85,000 and less than or equal to $107,000 | Greater than $170,000 and less than or equal to $214,000 | $13.30 | $12.70 | $12.30 | $12.10 | $11.60 | $11.60 | $12.00 |
| Greater than $107,000 and less than or equal to $160,000 | Greater than $214,000 and less than or equal to $320,000 | $34.20 | $32.80 | $31.80 | $31.10 | $29.90 | $29.90 | $31.10 |
| Greater than $160,000 and less than or equal to $214,000 | Greater than $320,000 and less than or equal to $428,000 | $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 |
As noted, all higher-earning beneficiaries in the IRMAA paying brackets will see a slight increase in their payments -- roughly, a 4.5% increase, see 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 | |||
| 2017 | 2016 | $ 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 | $13.30 | $12.70 | $0.60 | 4.72% |
| Greater than $107,000 and less than or equal to $160,000 | Greater than $214,000 and less than or equal to $320,000 | $34.20 | $32.80 | $1.40 | 4.27% |
| Greater than $160,000 and less than or equal to $214,000 | Greater than $320,000 and less than or equal to $428,000 | $55.20 | $52.80 | $2.40 | 4.55% |
| Greater than $214,000 | Greater than $428,000 | $76.20 | $72.90 | $3.30 | 4.53% |
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 | ||||||
| 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 |
| Greater than $85,000 and less than or equal to $129,000 | $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 |
Please note:
- 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.
- 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 2017 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.
2017 Medicare Part B Income-Related Monthly Adjustments Amounts (IRMAA)
As with the Medicare Part D program, 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 Medicare Part B coverage.
These monthly Medicare Part B premium adjustments range from an additional $53.50 to an additional $294.60 (per month).
| If Your Yearly Income Is | Your Monthly Medicare Part B Premium |
2017 Medicare Part B IRMAA |
|
| File Individual Tax Return | File Joint Tax Return | ||
| $85,000 or below (held harmless) | $170,000 or below | $104.90, or $121.80* | $0.00 |
| $85,000 or below | $170,000 or below | $134.00 | $0.00 |
| $85,001 - $107,000 | $170,000 - $214,000 | $187.50 | $53.50 |
| $107,001 - $160,000 | $214,000 - $320,000 | $267.90 | $133.90 |
| $160,001 - $214,000 | $320,000 - $428,000 | $348.30 | $214.30 |
| above $214,000 | above $428,000 | $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: | 2017 Medicare Part B premium amount |
Medicare Part B IRMAA |
| Less than or equal to $85,000 (held harmless) | $104.90 or $121.80* | $0.00 |
| Less than or equal to $85,000 | $134.00 | $0.00 |
| Greater than $85,000 and less than or equal to $129,000 | $348.30 | $214.30 |
| Greater than $129,000 | $428.60 | $294.60 |
According to CMS, IRMAA affects less than 5% of Medicare beneficiaries or around 2,450,000 people.
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