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2019 IRMAA: 5% decrease in Medicare Part D IRMAA for individual earning incomes between $85,000 - $500,000 and couples earning $170,000 - $750,000.

Category: IRMAA - for Higher Incomes
Published: Aug, 02 2018 11:08:11


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. 

Section 1860D-13(a)(7) of the Social Security Act requires that beneficiary’s with a "modified adjusted gross income" (MAGI) greater than the specified threshold amounts ($85,000 in 2019 for a beneficiary filing an individual income tax return or married and filing a separate return, and $170,000 for a beneficiary filing a joint tax return), are responsible for a larger portion of the total cost of Part D their benefit coverage and should pay back a portion of the cost via the Income-Related Monthly Adjustment Amount (IRMAA).

In 2019, most high-earning Medicare Part D members will see about a 5% decrease in their Part D IRMAA payments as compared to their current 2018 payments - assuming their income remains consistent.  However, people in the "new" highest income bracket (individuals earning over $500,000 and couples earning over $750,000) will notice a 3.5% increase in their IRMAA payments over 2018 levels.

Medicare Part D IRMAA charged for PDPs and MAPDs
If you are one of these higher-earning Medicare beneficiaries, you will find that Part D IRMAA payments are required whether you receive your Medicare Part D coverage through a stand-alone Medicare Part D plan (PDP) or through a Medicare Advantage plan that includes prescription drug coverage (MAPD).

Medicare Part D IRMAA and Medicare Part B IRMAA
In addition, people with Medicare who have higher incomes also pay a separate IRMAA for their Medicare Part B (out-patient) coverage.  Please see the Medicare Part B section below for more information on Medicare Part B IRMAA.

A new income bracket for 2019 Medicare Part D and Medicare Part B IRMAA
In 2011, Medicare Part D IRMAA payments were determined using five (5) income brackets (levels). The Medicare Access and CHIP Reauthorization Act of 2015 (the "Doc Fix" law) made adjustments to the five income brackets--Medicare Part D beneficiaries formerly in Part D IRMAA level four (4) were merged into level five (5) and level three (3) was split into level three (3) and level four (4).

In 2019,  a sixth income bracket will be added to the IRMAA payment levels.

These income bracket changes can be seen in the following chart and resulted in some people paid considerably higher IRMAA in 2018 (up to a 58% increase in IRMAA) as compared to 2017 (These bracket changes also applied to Part B IRMAA (Part B section below).

Beneficiaries who file individual tax returns with income that is: Beneficiaries who file joint tax returns with income that is: IRMAA Levels
2019 2018 2017 to 2011
Less than or equal to $85,000 Less than or equal to $170,000 Level 1 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 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 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 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 5 Level 4
Greater than $214,000 and less than or equal to $500,000 Greater than $320,000 and less than or equal to $750,000 Level 5 Level 5 Level 4
Greater than $500,000 Greater than $750,000 Level 6 Level 5 Level 5

The 2019 Medicare Part D Income Related Monthly Adjustment Amounts (IRMAA) (and new income levels) are shown in the charts below.

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
2019 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 $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 $12.40 $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 $31.90 $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 $51.40 $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
$70.90

$74.80


$55.20 $52.80 $51.30 $50.20 $48.30 $48.10 $50.10
Greater than $214,000 and less than or equal to $500,000 Greater than $428,000 and less than or equal to $750,000 $76.20 $72.90 $70.80 $69.30 $66.60 $66.40 $69.10
Greater than $500,000 Greater than $750,000 $77.40

The percentage change from 2018 to 2019 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
2019 2018 $
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 $12.40 $13.00 $-0.60 -4.62%
Greater than $107,000 and less than or equal to $133,500 Greater than $214,000 and less than or equal to $267,000 $31.90 $33.60 $-1.70 -5.06%
Greater than $133,500 and less than or equal to $160,000 Greater than $267,000 and less than or equal to $320,000 $51.40 $54.20 $2.80 -5.17%
Greater than $160,000 and less than or equal to $214,000 Greater than $320,000 and less than or equal to $428,000 $70.90 $74.80 -$3.90 -5.21%
Greater than $214,000 and less than or equal to $500,000 Greater than $428,000 and less than or equal to $750,000 $70.90 $74.80 -$3.90 -5.21%
Greater than $500,000 Greater than $750,000 $77.40 $74.80 $2.60 3.48%

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
2019 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 $0.00
Greater than $85,000 and less than or equal to $129,000 $70.90 $74.80 $55.20 $52.80 $51.30 $50.20 $48.30 $48.10 $50.00
Greater than $129,000 and less than or equal to $415,000 $76.20 $72.90 $70.80 $69.30 $66.60 $66.40 $69.10
Greater than $415,000 $77.40

A few important notes and reminders about IRMAA:
  • 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.

  • 2019 IRMAA is calculated using the most recent tax returns available to the IRS - for 2019, this would be your 2017 tax returns that were filed in 2018.

  • "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 for the unpaid balance of your IRMAA payment.

  • Medicare Part D beneficiaries affected by the 2019 IRMAA will receive a letter from the Social Security Administration notifying them of their IRMAA payment.

  • 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 2019 standard base premium is $33.19, a decrease of $1.83 (-5.23%) or roughly 5% lower than the 2018 standard base premium.

Change in the Medicare Part D Standard Base Premium
2019 2018 2017 2016 2015 2014 2013 2012 2011
$33.19 $35.02 $35.63 $34.10 $33.13 $32.42 $31.17 $31.08 $32.34


2019 Medicare Part B Income-Related Monthly Adjustments Amounts (IRMAA)

Please note: 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 2019 Medicare Part B coverage and these monthly Medicare Part B premium adjustments range from an additional $54.10 to an additional $325 (per month).

See chart above in Part D section for changes in IRMAA levels for 2019.

If Your Yearly Income Is Your Monthly
Medicare Part B
Premium
2019
Medicare
Part B
IRMAA
File Individual Tax Return File Joint Tax Return
$85,000 or below (held harmless) $170,000 or below about $134.00* $0.00
$85,000 or below $170,000 or below $135.50 $0.00
$85,001 - $107,000 $170,001 - $214,000 $189.60 $54.10
$107,001 - $133,500 $214,001 - $267,000 $270.90 $135.40
$133,501 - $160,000 $267,001 - $320,000 $352.20 $216.70
$160,001 - $500,000 $320,001 - $750,000 $433.40 $297.90
Greater than or equal to $500,000 Greater than or equal to $750,000 $460.50 $325.00
* You pay the same premium amount that you paid last year, plus COLA increase.

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: 2019
Medicare Part B premium amount
Medicare Part B IRMAA
Less than or equal to $85,000 (held harmless) about $134.00* $0.00
Less than or equal to $85,000 $135.50 $0.00
Greater than $85,000 and less than $415,000 $433.40 $297.90
Greater than or equal $415,000 $428.60 $294.60
* You pay the same premium amount that you paid last year, plus COLA increase.

According to CMS, IRMAA affects less than 5 percent of Medicare beneficiaries or around 2,850,000 people (other sources claim that 6% of Medicare beneficiaries have income that exceeds the IRMAA limits).

Appealing your IRMAA?
If you have had a change in income, you have the right to appeal your IRMAA or ask for a reassessment.  See our IRMAA FAQ: "How is the income-related monthly adjustment amount or IRMAA affected if my income goes down?" at: https://Q1FAQ.com/542.html







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