Medicare Part D premiums may increase each month based on 2023 tax returns, with extra costs for those earning more money.
IRMAA Brackets for Single Filers: Many older Americans don’t realize their Medicare bills can change based on how much money they made two years ago. Here’s a simple breakdown of what you’ll pay in 2025 depending on your 2023 tax returns.
For most Medicare users, the standard Part B medical insurance costs $185 each month in 2025. The prescription drug coverage (Part D) has its own regular price that varies by plan. But if you earned more money in 2023, you’ll pay extra – sometimes hundreds more each month.
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The government calls these added fees “IRMAA” (Income-Related Monthly Adjustment Amount). They check your 2023 tax information to decide if you owe more. Here’s what different income levels will pay:
The same income rules apply for extra drug plan costs:
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Many retirees get surprised by these higher bills when their income was higher two years before retirement. “We see people shocked when their Medicare costs jump after selling a home or cashing out investments,” says Medicare advisor Sarah Wilkins.
You can appeal these extra charges if your income has dropped significantly since 2023 like if you retired, lost a job, or had another major life change. The Social Security Administration has forms to request a new review of your situation.
Remember these amounts only affect Medicare Parts B and D. Your Part A hospital coverage stays free if you or your spouse paid Medicare taxes while working.
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