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Roughly a 3% increase in the 2016 Income Related Medicare Adjustment Amounts (IRMAA) for Medicare beneficiaries with higher annual incomes.




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Roughly a 3% increase in the 2016 Income Related Medicare Adjustment Amounts (IRMAA) for Medicare beneficiaries with higher annual incomes.

Published on 2015-07-30 14:32:59Category: IRMAA - for Higher Incomes

Medicare beneficiaries who earn over a certain amount will pay an additional premium for the 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 2016 standard base premium is $34.10, an increase of $0.97 (2.93%) or roughly 3% over the 2015 standard base premium. (The 2016 Medicare Part B IRMAA payments and corresponding income levels are listed below in this same blog.)

Change in the Medicare Part D Base Premium
 2016  2015

2014

2013

2012

2011

$34.10 $33.13 $32.42 $31.17 $31.08 $32.34

The 2016 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

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
Greater than $85,000 and less than or equal to $107,000 Greater than $170,000 and less than or equal to $214,000 $12.70 $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 $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 $52.80 $51.30 $50.20 $48.30 $48.10 $50.10
Greater than $214,000 Greater than $428,000 $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 3% 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
2016 2015 $
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 $12.70 $12.30 $0.40 3.25%
Greater than $107,000 and less than or equal to $160,000 Greater than $214,000 and less than or equal to $320,000 $32.80 $31.80 $1.00 3.14%
Greater than $160,000 and less than or equal to $214,000 Greater than $320,000 and less than or equal to $428,000 $52.80 $51.30 $1.50 2.92%
Greater than $214,000 Greater than $428,000 $72.90 $70.80 $2.10 2.97%

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
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
Greater than $85,000 and less than or equal to $129,000 $52.80 $51.30 $50.20 $48.30 $48.10 $50.00
Greater than $129,000 $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 2016 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.

2016 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 $48.70 to an additional $268.00 (per month).

If Your Yearly Income Is Your Monthly
Medicare Part B
Premium
2016
Medicare
Part B
IRMAA
File Individual Tax Return File Joint Tax Return
$85,000 or below (held harmless) $170,000 or below $104.90* $0.00
$85,000 or below $170,000 or below $121.80 $0.00
$85,001 - $107,000 $170,000 - $214,000 $170.50 $48.70
$107,001 - $160,000 $214,000 - $320,000 $243.60 $121.80
$160,001 - $214,000 $320,000 - $428,000 $316.70 $194.90
above $214,000 above $428,000 $389.80 $268.00



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: 2016
Medicare Part B premium amount
Medicare Part B IRMAA
Less than or equal to $85,000 (held harmless) $104.90* $0.00
Less than or equal to $85,000 $121.80 $0.00
Greater than $85,000 and less than or equal to $129,000 $316.70 $194.90
Greater than $129,000 $389.80 $268.00

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



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