For a bit of background, Medicare is a federal healthcare insurance plan for those who are over 65 or have certain disabilities. Medicare is made up of in-patient coverage (Part A), out-patient coverage (Part B), and prescription drug coverage (Part D). Medicare Part B generally covers outpatient services and Medicare Part D covers prescription drugs.
The income-related monthly adjustment amount (IRMAA) is based on your tax filing status, the current year’s adjustment amount, and your modified adjusted gross income from two years prior. In 2024, the standard base monthly premium for Part B is $174.90. For Part D, you’ll pay the premium of your chosen drug plan, and an additional IRMAA surcharge, if applicable. To calculate 2024 IRMAA, which is added to these base premiums, the Social Security Administration (SSA) will look at your tax return from 2022. Your Medicare premiums and IRMAA determination are sent to you every year in the fall. Below is a table of expected total costs, which include both the base amount and IRMAA charge:
If you receive an IRMAA determination and you believe there is an error on your tax forms from two years ago or you’ve had a life-changing event, you may request a new initial determination. Examples of life-changing events include, but are not limited to, marriage or divorce, death of a spouse, and loss or reduction of work. You may start this process by submitting an IRMAA Life-Changing Event Form to SSA or visiting your local SSA office.
If you do not agree with IRMAA, you have 60 days from receipt of your IRMAA determination notice to appeal. You may also concurrently submit a new initial determination and appeal. After 60 days, you may still appeal if you have a good cause such as serious illness, or if the claim was submitted and not received by the SSA. You may start the appeal process by submitting a Request for Reconsideration Form to SSA or visiting your local SSA office. There are four levels of appeal in total.
Caribou can help you understand the new initial determination or appeal process. Please note, that if you are granted the appeal or new initial determination, the excess IRMAA will be retroactively refunded.
Please check back for updated dates each year! As of right now, CMS has not released numbers for 2025 yet.
Learn More:
What is an IRMAA in Medicare? | Healthline
2024 Medicare Parts A & B Premiums and Deductibles | CMS
Last Revised August 8th, 2024