Medicare Income-Related Monthly Adjustment Amount (IRMAA) is the additional payment you make if your income is above a certain level. This amount is eventually added to the premiums of your Medicare Part B or Part D plans.
The Social Security Administration (SSA) has four income brackets to determine your and your spouse’s IRMAA. The SSA makes this determination by studying the income that you reported in your tax returns two years ago. So for 2021 IRMAA, SSA will look at your tax returns from 2019.
Eligibility for Premium-Free Part A
For many, Medicare Part A is premium-free, but you are only eligible for the premium-free benefit if:
- You are eligible for Social Security or Railroad Retirement benefits
- You are getting Social Security or Railroad Retirement benefits
- You and/or your spouse had Medicare-covered employment through the government
If you do not meet these criteria, you might have to pay a monthly premium for Part A, but your premiums for this plan are not based on your income as Part B and D are. For Part A, your premiums will be based upon how long you have worked and paid taxes.
IRMAA For Part B and D
Since these costs can change each year, these specific Medicare Part B and D premium costs are only for 2021:
Part B:
Individuals Cost
Equal to or below $88,000 $148.50
$88,001 – $111,000 $207.90
$111,001 – $138,000 $297.00
$138,001 – $165,000 $386.10
$165,001 – $500,000 $475.20
$500,000 and above $504.90
Couples Cost
Equal to or below $176,000 $148.50
$176,001 – $222,000 $207.90
$222,001 – $276,000 $297.00
$276,001 – $330,000 $386.10
$330,001 – $750,000 $475.20
$750,000 and above $504.90
Part D:
Individuals Cost
Equal to or below $88,000 Plan premium
$88,001 -$111,000 $12.30 + premium
$111,001 – $138,000 $31.80 + premium
$138,001 – $165,000 $51.20 + premium
$165,001 – $500,000 $70.70 + premium
$500,000 and above $77.10 + premium
Couples Cost
Equal to or below $176,000 Plan premium
$176,001 – $222,000 $12.30 + premium
$222,001 – $276,000 $31.80 + premium
$276,001 – $330,000 $51.20 + premium
$330,001 – $750,000 $70.70 + premium
$750,000 and above $77.10 + premium
How Can KBI Solutions Help You?
At Kannonball Insurance Solutions, we understand that this can be a confusing topic, but that’s why we’re here to help! All you have to do is call us today to learn more about IRRMA and how it relates to Medicare so we can help you determine how this will impact what you will pay.
