Medicare beneficiaries who have a modified adjusted gross income of more than $85,000 for individuals or $170,000 for married couples filing jointly pay an additional Medicare Part D Income-Related Monthly Adjustment Amount (IRMAA) based on their income.
The IRMAA can change every year and is calculated using the recently released standard base premium. Since the 2013 standard base premium of $32.42 is more similar to the 2011 base premium of $32.34, people with higher incomes will see increases in their IRMAA payments similar to 2011.
| Medicare Part D Base Premium |
|||
|
2014 |
2013 |
2012 |
2011 |
| $32.42 | $31.17 | $31.08 | $32.34 |
As shown in the following table below, the 2014 IRMAA amounts are more in line with the 2011 IRMAA firgues, rather than 2012 or 2013.
|
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 | |||
|
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 |
| Greater than $85,000 and less than or equal to $107,000 | Greater than $170,000 and less than or equal to $214,000 | $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 | $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 | $50.20 | $48.30 | $48.10 | $50.10 |
| Greater than $214,000 | Greater than $428,000 | $69.30 | $66.60 | $66.40 | $69.10 |
Beneficiaries in the lowest IRMAA paying income bracket will see the largest increase -- namely, 4.31%.
|
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 | |||
|
2014 |
2013 |
$ |
% |
||
| Less than or equal to $85,000 | Less than or equal to $170,000 | $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 | $12.10 | $11.60 | $0.50 | 4.31% |
| Greater than $107,000 and less than or equal to $160,000 | Greater than $214,000 and less than or equal to $320,000 | $31.10 | $29.90 | $1.20 | 4.01% |
| Greater than $160,000 and less than or equal to $214,000 | Greater than $320,000 and less than or equal to $428,000 | $50.20 | $48.30 | $1.90 | 3.93% |
| Greater than $214,000 | Greater than $428,000 | $69.30 | $66.60 | $2.,70 | 4.05% |
|
Beneficiaries who are married but file separate tax returns with income that is: |
Medicare Part D Income Related Monthly Adjustment Amount |
|||
|
2014 |
2013 |
2012 |
2011 |
|
| Less than or equal to $85,000 | $0.00 | $0.00 | $0.00 | $0.00 |
| Greater than $85,000 and less than or equal to $129,000 | $50.20 | $48.30 | $48.10 | $50.00 |
| Greater than $129,000 | $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 2013 IRMAA will receive a letter from the Social Security Administration notifying them of their Medicare Part D plan premium increase.