Why am I paying more for Medicare Part B and D than my friends? What is IRMAA and how is it calculated?

Question

Brian Moore · Accepted Answer

When clients ask why their Medicare Part B and D premiums exceed others’, I attribute it to IRMAA, the Income-Related Monthly Adjustment Amount, which increases costs based on higher income reported on their tax return from two years prior. Medicare discourages advisors like me from quoting specific thresholds, instead directing individuals to consult the official income brackets and resources to determine their financial responsibility two years hence. The calculation uses modified adjusted gross income, and significant income events—such as a large asset sale—can elevate the surcharge, often unexpectedly impacting their total premium obligation.

Answered by Brian Moore on March 26, 2025

Broker Licensed in OH

Answered by Brian Moore Medicare Insurance Agent

James Carlson · Answer

This may be due to not earning 40 quarters.  You may be a high earner and are paying an excess premium due to higher income.

Shawn Brown · Answer

IRMAA is determined based on your Modified Adjusted Gross Income (MAGI) from your tax return filed two years ago.

For example, your 2025 IRMAA will be based on your 2023 tax return.

MAGI includes:

Adjusted Gross Income (AGI)

Tax-exempt interest income

Untaxed foreign income

Social Security benefits not included in AGI

Other income items that may not be taxed but count toward MAGI.

Frank Souk · Answer

IIRMA is an acronym for Income-Related Monthly Adjustment Amount. Individuals with certain income thresholds can be subject to increased Part B and Part D premiums. It is important to remember that your Medicare Part B and Part D premiums are calculated based off your Modified Adjusted Gross Income from 2 years prior.

Answered by Frank Souk on March 25, 2025

Agent Licensed in WI, AL, AR & 40 other states

Answered by Frank Souk Medicare Insurance Agent

Renee Brown · Answer

The premium for the Part B and D Medicare is based on income. The base amount for everyone is $185.00 but depending on your last 2 years income it may be more. If your friends is $185 and yours is higher, that means that your income was higher than your friends for those years.

IRMAA stands for: Income-Related Monthly Adjustment Amount, is a surcharge added to Medicare Part B and Part D premiums for those with higher incomes, calculated based on your Modified Adjusted Gross Income (MAGI) from two years prior to the current year.

Leslie Helene Sussman · Answer

IRMAA stands for Income-Related Monthly Adjustment amount.

IRMAA is a surcharge added to Medicare Part B and D premiums when your yearly income is above certain thresholds.

2025 Income limit for IRMAA is $106,000.00 for individuals and $212,000.00 for couples.

Income over $106k could bring your Part B premium from $259 - $628.90 plus Part D and additional $13.70 - $85.80 a month.

If your income reduces while on Medicare you can submit an appeal through Social Security.

Why am I paying more for Medicare Part B and D than my friends? What is IRMAA and how is it calculated?

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Why am I paying more for Medicare Part B and D than my friends? What is IRMAA and how is it calculated?

Agents: Share Your Expertise

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Medicare Agents HubA non-government resource website

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A non-government resource website