The Income Related Monthly Adjustment Amount (IRMAA) is a sliding scale approach to Medicare Part B and Part D cost to you.
Okay, what does that mean? Well, frankly, if you did well, and your income was over a certain dollar amount, then Social Security may apply an IRMAA on your Medicare Part B and Part D amounts. To know what those amounts are: https://secure.ssa.gov/poms.nsf/lnx/0601101020
It affects Part B and/or Part D (depending one what you’ve enrolled in at the time, and the information is gained from the IRS using the Modified Adjusted Gross Income (MAGI).
Enrolling in Medicare Part B triggers the Part B IRMAA.
Enrolling in a Part D plan (Prescription Drug), or a plan including coverage for Part D, triggers the Part D IRMAA. This amount is IN ADDITION to any monthly premium for the Part D plan you select. However, the IRMAA is paid to Social Security.
These amounts are collected by Social Security. So, if you are drawing social security, then it will automatically be deducted from your benefit check. If you are not drawing social security yet, then you will pay Social Security directly on a quarterly basis (every three months). You will hear from Social Security about this, if you are subject to these costs. They will also communicate with you the ways to appeal their findings.
For 2017:
Single:
| If MAGI in 2015 (or 2014 if 2015 is not available) was: | Then the Part B Premium* is: | Prescription Drug |
| Coverage Premium** is: | ||
| More than $85,000 but less than or equal to $107,000 | $187.50 | $13.30 |
| + Plan premium | ||
| More than $107,000 but less than or equal to $160,000 | $267.90 | $34.20 |
| + Plan premium | ||
| More than $160,000 but less than or equal to $214,000 | $348.30 | $55.20 |
| + Plan premium | ||
| More than $214,000 | $428.60 | $76.20 |
| + Plan premium |
Maried filing Jointly:
| If MAGI in 2015 (or 2014 if 2015 is not available) was: | Then the Part B Premium* is: | Prescription Drug |
| Coverage Premium** is: | ||
| More than $170,000 but less than or equal to $214,000 | $187.50 | $13.30 |
| + Plan premium | ||
| More than $214,000 but less than or equal to $320,000 | $267.90 | $34.20 |
| + Plan premium | ||
| More than $320,000 but less than or equal to $428,000 | $348.30 | $55.20 |
| + Plan premium | ||
| More than $428,000 | $428.60 | $76.20 |
| + Plan premium |
Married Filing separately:
| If MAGI in 2015 (or 2014 if 2015 is not available) was: | Then the Part B Premium* is: | Prescription Drug |
| Coverage Premium** is: | ||
| More than $85,000 but less than or equal to $129,000 | $348.30 | $55.20 |
| + Plan premium | ||
| More than $129,000 | $428.60 | $76.20 |
| + Plan premium |