For individuals enrolled in Medicare, costs can vary significantly depending on income. While most beneficiaries pay a standard monthly premium for Medicare Part B and Part D, higher-income earners may face extra charges through the Income-Related Monthly Adjustment Amount (IRMAA).
IRMAA is an additional cost applied to both medical and prescription drug coverage based on your Modified Adjusted Gross Income (MAGI) from two years prior. This means that 2025 Medicare costs are determined by 2023 income.
Knowing how IRMAA works is essential, as these higher premiums can have a major financial impact on retirees and individuals on a fixed income.
Medicare Part B
In 2025, the standard Medicare Part B premium is $185.00 per month. This amount applies to individuals with a MAGI of $106,000 or less in 2023. However, if your income exceeded that threshold, your premium increases based on your tax bracket.
| 2023 Income (Single Filers) | 2025 Part B Monthly Premium |
|---|---|
| $106,000 or less | $185.00 |
| $106,001 – $133,000 | $259.00 |
| $133,001 – $167,000 | $370.00 |
| $167,001 – $200,000 | $480.90 |
| $200,001 – $500,000 | $591.90 |
| Over $500,000 | $628.90 |
For married couples filing jointly, the income brackets double. For example, if a couple’s combined income is $212,000 or less, they will pay the standard $185.00 premium.
Medicare Part D
Medicare Part D, which covers prescription drug plans, also has an IRMAA surcharge for higher earners. If your 2023 income was $106,000 or less, you only pay your plan’s standard premium. However, if your income is above that level, you will owe an extra charge.
| 2023 Income (Single Filers) | 2025 Part D IRMAA Monthly Surcharge |
|---|---|
| $106,000 or less | $0.00 |
| $106,001 – $133,000 | $13.70 |
| $133,001 – $167,000 | $35.30 |
| $167,001 – $200,000 | $57.00 |
| $200,001 – $500,000 | $78.60 |
| Over $500,000 | $85.80 |
These charges are added on top of the standard premium of your chosen Part D plan.
IRMAA Charges
If you believe your IRMAA charges are incorrect or if your income has significantly decreased, you have the right to appeal. The Social Security Administration (SSA) allows beneficiaries to request a review if their income has dropped due to:
- Retirement
- Divorce
- Death of a spouse
- Loss of income-producing property
To file an appeal, you must submit Form SSA-44 along with documentation proving your income has changed. This could result in lower premiums moving forward.
By knowing how Medicare costs are determined and knowing your options to appeal IRMAA charges, you can better plan for healthcare expenses and avoid unnecessary financial strain.
FAQs
What is IRMAA in Medicare?
IRMAA is an extra premium charge for higher-income Medicare beneficiaries.
How is IRMAA calculated?
IRMAA is based on your income from two years prior, using tax records.
Can I avoid IRMAA charges?
If your income decreases, you can appeal IRMAA with the SSA.
What is the 2025 Medicare Part B premium?
The standard Part B premium in 2025 is $185.00 per month.
How much is the highest IRMAA charge for Part D?
In 2025, the highest Part D IRMAA charge is $85.80 per month.
