Medicare beneficiaries who earn over a certain amount will pay an additional premium for their Medicare Part B (out-patient coverage) and Medicare Part D prescription drug plan coverage (whether received through a stand-alone Medicare Part D plan (PDP) or a Medicare Advantage plan that includes prescription drug coverage (MAPD)) - or Income-Related Monthly Adjustment Amount (IRMAA).

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.)


The 2017 Medicare Part D IRMAA amounts are shown in the charts below.


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.

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:


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).

* You pay the same premium amount that you paid last year.


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:

* You pay the same premium amount that you paid last year.

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: Q1FAQ.com/542