The amount of income a beneficiary makes can affect the amount of their Medicare Part B & Part D premiums. Individuals with higher-than-average incomes pay more for Part B and D benefits. Due to the fact that most beneficiaries do not pay for Part A, no IRMAA applies even when a beneficiary pays for the Part A benefit. The U.S. Social Security Administration decides the new income threshold amounts each year. In this post, we explain the Medicare Part B IRMAA 2025.
IRMAA
The term IRMAA stands for income-related monthly adjustment amount. IRMAA is a fee beneficiaries pay on top of Medicare Part B & Part D premiums when they have income over the annual threshold amounts. In 2025, Medicare beneficiaries earning more than $106,000 annually will pay the IRMAA. This amount is added to their Part B and Part D premiums.
The SSA put the Part B IRMAA in place in 2007. The Part D IRMAA did not go into effect until 2011.
How beneficiaries pay the Medicare Part B IRMAA
When a Medicare beneficiary receives their Social Security retirement benefit, the Part B premium is deducted from their monthly check. This includes any IRMAA surcharge amounts. The IRMAA is calculated using a sliding scale based on income brackets. Each year IRMAA amounts change due to inflation.
There is a hold harmless provision that prevents Social Security payments from decreasing from one year to the next. However, this rule does not apply to beneficiaries who pay an IRMAA.
In 2025, most monthly Social Security benefits will increase by about $50 a month. In addition, the Part B premium will most likely increase to $185. This amounts to an increase of about $10 per month. This keeps the hold harmless from going into effect in most cases.
Who pays the IRMAA
The average person will never pay an IRMAA. Only about 7% of those who receive Social Security benefits will pay an IRMAA. There are currently almost 67 million people who receive Social Security benefits and about 4.9 million beneficiaries pay the IRMAA.
How income determines the IRMAA
Tax returns from two years prior determines the beneficiaries’ IRMAA. In other words, the beneficiaries’ tax return from 2023 will determine their IRMAA surcharge for 2025. The amount of an individual’s IRMAA is recalculated each year. For 2025, individuals with an income over $106,000 will pay an IRMAA.
If the Social Security administration determines a beneficiary has an IRMAA, they receive a notice to inform them of the surcharge. Please refer to the chart below for all income levels and IRMAA amounts.
| Medicare Part B IRMAA 2025 | ||
|---|---|---|
| Individual Income Amount | Joint Income Amount | Part B Premium Amount |
| $106,000 or less | $212,000 or less | $185 (no IRMAA) |
| Over $106,000 – $133,000 | Over $212,000 – $266,000 | $259 |
| Over $133,000 – $167,000 | Over$266,000 -$334,000 | $370 |
| Over $167,000 – $200,000 | Over $334,000 – $400,000 | $480.90 |
| Over $200,000 – $500,000 | Over $400,000 – $750,000 | $591.90 |
| Over $500,000 | Over $750,000 | $628.90 |
How to appeal an IRMAA
If a beneficiary receives an IRMAA determination, they can appeal the determination. Those who have a significant loss of income from a life changing event can file for a redetermination. To file for a redetermination, beneficiaries need to fill out Form SSA-44. A few life-changing events may include a divorce, death of a spouse of loss of income due to retirement or other reason.
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If the SSA denies the appeal, OMHA (the Office of Medicare Hearings and Appeals) conducts a third level appeal process.
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