The surcharge is determined by your Modified Adjusted Gross Income (MAGI) from two years prior, meaning your 2025 surcharge will be based on your 2023 tax return.
What is IRMAA and how does it Works?
IRMAA is an extra charge added to your Medicare Part B and Part D premiums if your income exceeds certain thresholds. These income thresholds for IRMAA eligibility in 2025 are set at $106,000 for individuals and $212,000 for married couples filing jointly.
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If your MAGI from 2023 exceeds these amounts, you’ll be required to pay a higher premium for your Medicare coverage. The Social Security Administration (SSA) determines whether you need to pay this additional charge based on your income.
The surcharge for Medicare Part B, which covers medical services and outpatient care, will range from $259 to $628 per month in 2025, depending on your income level. For Part D, which covers prescription drugs, the surcharge will range from $35.30 to $85.80 per month.
As per Keplinger, the standard monthly premium for Part B in 2025 is $185, and for Part D, it is typically around $46.50. If your income is higher than the threshold, you will need to pay the IRMAA surcharge in addition to these standard premiums.
Income Brackets for IRMAA
For 2025, the IRMAA surcharges for Medicare Part B and Part D are based on income brackets. If you are a single filer with an income between $106,000 and $133,000, the surcharge for Part B will be $74. If your income exceeds $133,000, the surcharge will increase. For Part D, the surcharge will range from $35.30 to $85.80, depending on your income.
MAGI is your adjusted gross income (AGI) plus certain deductions, such as tax-exempt interest. This includes all sources of income, like wages, dividends, and rental income, minus adjustments like retirement plan contributions. If you are not sure about your MAGI you can use tax software to help calculate it based on your 2023 tax return.
How to Pay IRMAA?
Medicare automatically adds the Part B IRMAA surcharge to your monthly premium bill, so you don’t need to do anything extra. However, Medicare bills the Part D IRMAA surcharge separately. Make sure to pay your premiums on time to avoid penalties or delays.
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If your income was higher in 2023 due to a one-time event, such as the sale of a property or a Roth conversion, you can appeal the IRMAA surcharge. Social Security allows you to request a redetermination if you believe your income has changed due to a life-changing event. If your appeal is denied, you can take further steps to challenge the decision, although this process may require legal assistance.
What does Part B and D cover?
Medicare Part B covers services such as doctor visits, outpatient care, preventive treatments like flu shots and screenings, and medically necessary services, including lab tests and medical equipment. It also covers certain medications administered by healthcare providers, like chemotherapy.
Medicare Part D, which is part of Medicare Advantage, provides prescription drug coverage. It helps pay for outpatient medications that you pick up at the pharmacy, though coverage can vary depending on the plan.
