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2018 IRMAA: 35% to 58% Medicare Part D IRMAA payment increases for individual earning incomes between $133,500 - $214,000 and couples earning $267,000 - $428,000.


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2018 IRMAA: 35% to 58% Medicare Part D IRMAA payment increases for individual earning incomes between $133,500 - $214,000 and couples earning $267,000 - $428,000.
Published on 2017-08-07 13:57:27Category: IRMAA - for Higher Incomes

Since 2011, people with Medicare who earn over $85,000 have been paying an additional monthly premium or Income-Related Monthly Adjustment Amount (IRMAA) for their Medicare Part D prescription drug plan coverage. 

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):

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.
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 2018 standard base premium is $35.02, a decrease of $0.61 (-1.71%) or roughly 2% lower than the 2017 standard base premium.

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)

Please note: The 2018 Medicare Part B IRMAA figures have not yet been released by CMS.  We will add them to the page when the figures are released from Medicare.  We have included the 2017 Medicare Part B IRMAA figures as reference.  (Updated 08/07/2017)

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 2017 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).

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
* 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:

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
* 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 (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: https://q1medicare.com/q1group/MedicareAdvantagePartDQA/FAQ.php?faq_id=542


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