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The income limits come into play with both Medicare Part B & Part D. The limits are used to determine if an individual pays either the standard premium amounts or a higher income-based premium for Part B & Part D.

Beneficiaries who earn more than the Medicare income limit have to pay an IRMAA for their Part B & Part D coverage.  In 2024, the income limit is $103,000 for an individual.  The income limit is $206,000 per couple.

Which Medicare coverage is income based

Medicare Part A is free to most beneficiaries and no IRMAA applies.

Part B of Medicare is income based as most beneficiaries have to pay for it, with the exception of those who qualify for “Extra Help“.

Learn more about help for Medicare beneficiaries with limited resources.

Beneficiaries of Medicare Part C (Medicare Advantage Plans) only have to pay the IRMAA when the plan they choose includes prescription drug coverage.  Few plans called MA only do not include prescription drug coverage and therefore, the IRMAA does not apply to those plans.

The IRMAA does apply to Medicare Part D (PDP) plans.

How is individual income determined

For 2024, the income limit is based on the beneficiaries’ 2022 tax return.  In other words, each year the IRMAA is based on the tax return from 2 years prior.  Medicare uses the MAGI (modified adjusted gross income) to determine who pays the IRMAA.

Although beneficiaries don’t see this amount on their tax return, they can find it by adding their income after deductions to any tax-free interest they earned.

Agents: Learn more about IRMAAs; watch our  YouTube video.

More about income limits in 2024

For 2024, there is more than one income threshold used to determine the IRMAA amount each individual pays for their Part B and Part D coverage.  Here are the Part B & Part D IRMAA amounts:

Most people pay the standard Medicare Part B premium rate.  The premium rate for Part D varies according to the plan selected. Beneficiaries with higher incomes pay extra for both Part B and Part D.

IRMAAs for Part B and Part D are automatically taken from their Social Security or Railroad Retirement Board benefits. Beneficiaries who do not receive monthly benefit payments receive a bill from Medicare.

How to handle an IRMAA

For beneficiaries subject to an IRMAA for Medicare Part B & Part D, there are ways to potentially lower your MAGI and reduce premiums.  Beneficiaries can consult their accountant and or financial advisor to help lower taxable income amounts.

How to request an IRMAA redetermination

Because the Social Security Administration bases their IRMAA determination on income reported on tax returns from 2 years prior, beneficiaries may have had a reduction in income.   There are some life events that can cause a reduction in income, these include:

1. Death of a spouse, a divorce or annulment or a marriage
2. When either spouse stops or reduces the number of hours they work
3. If either spouse loses a pension
4. Loss of income due to income producing property loss because of a natural disaster, fraud or similar circumstances

When beneficiaries receive notice of an IRMAA, they also receive information that explains how to request a new initial determination.

If Social Security receives a new initial determination, they may revise the amount of the IRMAA or dismiss it all together.  Beneficiaries can request a redetermination by either scheduling an appointment with their local Social Security office or by submitting the following form:

Medicare IRMAA Life-Changing Event form

beneficiaries must provide documentation of correct income or life-changing event that affected their income level in a negative way.

Beneficiaries can also call the representatives at SSA +1 800-772-1213 and request help lowering their IRMAA.  Explain that Social Security used outdated or incorrect information when calculating the IRMAA.