IRMAA Income Related Monthly Adjustment Amount

IRMAA Part B and D-  The Income related monthly adjustment amount determines how much higher income earners pay for Medicare Part B premium and additional Medicare Part D premium.(They add it to the premium of the part D plan or MAPD plan)   The adjustment is based on income earned two years prior to the current year. The 2020 IRMAA is determined by 2018 income and the 2021 IRMAA is determined by the 2019 income.  The 2020 and 2021 IRMAA amounts are listed below.  IRMAA can be appealed if there has been a life changing event that modifies income.  For those that qualify, the IRMAA can be reduced or eliminated based on the life changing event.  (There are 7 of them listed below)

2021 Part B IRMAA

2021

The standard Part B premium amount in 2021 is $148.50. Most people pay the standard Part B premium amount. If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you’ll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.

If your yearly income in 2019 (for what you pay in 2021) was

You pay each month (in 2021)

File individual tax return

File joint tax return

File married & separate tax return

$88,000 or less

$176,000 or less

$88,000 or less

$148.50

above $88,000 up to $111,000

above $176,000 up to $222,000

Not applicable

$207.90

above $111,000 up to $138,000

above $222,000 up to $276,000

Not applicable

$297.00

above $138,000 up to $165,000

above $276,000 up to $330,000

Not applicable

$386.10

above $165,000 and less than $500,000

above $330,000 and less than $750,000

above $88,000 and less than $412,000

$475.20

$500,000 or above

$750,000 and above

$412,000 and above

$504.90

2020 Part B IRMAA

2020

The standard Part B premium amount in 2020 is $144.60. Most people pay the standard Part B premium amount. If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you’ll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.

If your yearly income in 2018 (for what you pay in 2020) was

You pay each month (in 2020)

File individual tax return

File joint tax return

File married & separate tax return

$87,000 or less

$174,000 or less

$87,000 or less

$144.60

above $87,000 up to $109,000

above $174,000 up to $218,000

Not applicable

$202.40

above $109,000 up to $136,000

above $218,000 up to $272,000

Not applicable

$289.20

above $136,000 up to $163,000

above $272,000 up to $326,000

Not applicable

$376.00

above $163,000 and less than $500,000

above $326,000 and less than $750,000

above $87,000 and less than $413,000

$462.70

$500,000 or above

$750,000 and above

$413,000 and above

$491.60

Medicare Part D IRMAA

Part D premiums by income

The chart below shows your estimated prescription drug plan monthly premium based on your income as reported on your IRS tax return. If your income is above a certain limit, you’ll pay an income-related monthly adjustment amount in addition to your plan premium.

2020

If your filing status and yearly income in 2018 was

File individual tax return

File joint tax return

File married & separate tax return

You pay each month (in 2020)

$87,000 or less

$174,000 or less

$87,000 or less

your plan premium

above $87,000 up to $109,000

above $174,000 up to $218,000

not applicable

$12.20 + your plan premium

above $109,000 up to $136,000

above $218,000 up to $272,000

not applicable

$31.50 + your plan premium

above $136,000 up to $163,000

above $272,000 up to $326,000

not applicable

$50.70 + your plan premium

above $163,000 and less than $500,000

above $326,000 and less than $750,000

above $87,000 and less than $413,000

$70.00 + your plan premium

$500,000 or above

$750,000 and above

$413,000 and above

$76.40 + your plan premium

2021

If your filing status and yearly income in 2019 was

File individual tax return

File joint tax return

File married & separate tax return

You pay each month (in 2021)

$88,000 or less

$176,000 or less

$88,000 or less

your plan premium

above $88,000 up to $111,000

above $176,000 up to $222,000

not applicable

$12.30 + your plan premium

above $111,000 up to $138,000

above $222,000 up to $276,000

not applicable

$31.80 + your plan premium

above $138,000 up to $165,000

above $276,000 up to $330,000

not applicable

$51.20 + your plan premium

above $165,000 and less than $500,000

above $330,000 and less than $750,000

above $88,000 and less than $412,000

$70.70 + your plan premium

$500,000 or above

$750,000 and above

$412,000 and above

$77.10 + your plan premium

Appealing Medicare Part B and D IRMAA

Situation

Description

Tax return inaccurate or out of date

·        A beneficiary filed an amended tax return for the year SSA is using to make an IRMAA decision

·        There was an error in the IRS data

·        The IRS provided SSA with older data and the beneficiary wants to use newer information

·        You had a major life-changing event that significantly reduced your income

Life-changing event that affects the beneficiary’s modified adjusted gross income

There are 7 qualifying life-changing events:

·        Death of spouse

·        Marriage

·        Divorce or annulment

·        Work reduction

·        Work stoppage

·        Loss of income from income producing property

·        Loss or reduction of certain kinds of pension income

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