So who is IRMAA, anyway?

Do you know IRMAA?

No, we didn’t misspell the name of your mother-in-law or the woman at church who chairs the monthly bake sale – we mean the Income Related Monthly Adjusted Amount, also known as IRMAA. This is an additional charge that may be tacked onto your Medicare premiums if your income is above certain levels.

Specifically, IRMAA applies to your Medicare Part B and Part D premiums (Part A, thankfully, is covered by tax revenue at no charge to you). The adjusted amount you pay is determined by your income and filing status from two years prior.

Depending on those two factors, your Part B premium could be anywhere between the standard $148.50 up to $504.90. As for Part D, it could cost you between $12.30 to $77.10 a month in addition to your monthly premium.

So no, we don’t all necessarily pay the same for Medicare!

This means that, if you’re in a higher tax bracket, you might be paying more for your Medicare coverage. But there are different levels of “more” here – so you definitely want to double-check that you’re not accidentally overpaying for it.

– Graham