Why Am I Paying More for My Part B?
Hint: It has to do with your income
by Samantha Lam
What is IRMAA and How Does it Work?
The IRMAA is an additional amount that some people have to pay on top of their regular Medicare premiums. It stands for Income Related Monthly Adjustment Amount. It's based on your income as reported on your tax return from two years ago. For example, if you're paying the IRMAA in 2024, it will be based on your income from 2022.
Why Does IRMAA Exist?
The purpose of the IRMAA is to help fund the Medicare program by requiring higher-income beneficiaries to pay more for their premiums. The idea is that those who can afford to pay more should contribute more to the cost of the program. The IRMAA applies to both Medicare Advantage plans and traditional Medicare plans.
What If You Can't Afford to Pay IRMAA?
If you can't afford to pay the IRMAA, you may be able to appeal the decision. You can request a reconsideration of your IRMAA if your income has decreased or if you've experienced a life-changing event, such as the death of a spouse, divorce, or retirement. Life-changing events can result in a lower IRMAA.
To request a reconsideration, you'll need to complete and submit the SSA-44 form to the Social Security Administration. The form is available on the SSA website or by calling 1-800-772-1213. You'll need to provide documentation to support your request, such as tax returns or proof of life-changing events.
In 2024, the income thresholds for the IRMAA are:
| 2022 Individual Tax Return |
2022 Joint Tax Return |
2024 Part B Premium |
2024 Part D IRMAA |
|---|---|---|---|
| $103k or less | $206k or less | $174.70 | None |
| $103k - $129k | $206k - 258k | $244.60 | + $12.90 |
| $129k-161k | $258k - 322k | $349.40 | + $33.30 |
| $161k-193k | $322k - 386k | $454.20 | + $53.80 |
| $193k - 500k | $386k - $750k | $559 | +$74.20 |
| $500k+ | $750k+ | $594 | +$81 |