I’m Paying More Than Most People for Medicare Part B, What Exactly is IRMAA?
IRMMA is an acronym for Income Related Monthly Adjustment Amount and affects the monthly premium individuals pay for Medicare Part B (the medical portion of Medicare).
For individuals enrolling in Medicare Part B in 2020, the “standard” monthly premium is $144.60. This applies to those whose modified adjusted gross income reported to the IRS via tax return in 2018 is at or below $87,000 (individual) or $174,000 (married filing jointly). For those with reported incomes higher than the “standard”, the Part B premium will increase in five increments.
These higher Part B premiums can be adjusted or removed if income levels change. However, it is necessary to contact the Social Security Administration with documentation to reduce or eliminate IRMAA.
For individuals receiving Social Security, Railroad Retirement or Office of Personnel Management Retirement Benefits, the Part B premium is automatically deducted from checks prior to being distributed. If however, one delays taking retirement income until the “full retirement age” of sixty-six or beyond, a quarterly premium will need to be remitted directly to Social Security, a minimum of $144.60 X 3 = $433.80.
For a detailed description of income levels that will be affected by IRMAA, please go to http://www.medicare.gov and search “Part B premiums” or call a professional.