Medicare beneficiaries with income exceeding certain limits will pay an additional surcharge called the Income-Related Monthly Adjustment Amount (IRMAA), based on their 2023 tax return, affecting Part B and Part D premiums.
IRMAA brackets for 2025 Medicare: Medicare is a crucial program for seniors and those with certain disabilities, but it can be a bit confusing. It’s divided into different parts, each covering specific healthcare needs.
In 2025, Medicare beneficiaries whose income exceeds certain limits will need to pay an additional surcharge called the Income-Related Monthly Adjustment Amount (IRMAA). This is added on top of the standard premiums for Part B and Part D.
Medicare Age Eligibility: What Is the Earliest Age to Qualify?
The surcharge is determined based on your Modified Adjusted Gross Income (MAGI) from two years prior. So, for 2025, the surcharge will be based on your 2023 tax return. This means that if you had a higher income in 2023, you may have to pay more for your Medicare coverage in 2025.
For 2025, the income thresholds for IRMAA are as follows:
The surcharge for Part B will range from $259 to $628 per month, depending on your income. In 2025, Medicare will add these amounts to the standard Part B premium of $185 per month. For Part D, the typical premium of $46.50 will also have the IRMAA surcharge added on top.
Does Medicare Offer a Grocery Allowance? Here is what you need to know
Medicare will automatically add the IRMAA surcharge for Part B to your monthly premium bill. You don’t need to take any extra steps for this charge, it will simply be included with your regular payment. However, for Part D, Medicare bills the IRMAA surcharge separately, so you’ll need to keep track of those payments.
It’s crucial to pay your premiums on time. If you miss payments or delay your payment, you could face penalties or a delay in coverage.
If your income was higher in 2023 due to a one-time event (such as selling a property or making a large financial withdrawal), you can appeal the IRMAA surcharge. Social Security allows you to request a redetermination if you believe the surcharge doesn’t reflect your current financial situation.
To appeal, you’ll need to contact the Social Security Administration. If your appeal is denied, you can take further steps, though it may require legal assistance, especially if you’re challenging the decision based on special circumstances.
Does Medicare Cover Cataract Surgery? What You Can Get with Your Health Plan
Your MAGI is your adjusted gross income (AGI) from your tax return, plus certain tax-exempt income, like interest from municipal bonds. This includes all sources of income, including wages, pensions, rental income, and dividends, minus deductions like retirement contributions. If you’re not sure about your MAGI, you can use tax software to calculate it based on your 2023 tax return or consult with a tax professional.
Social Security funds may run out by 2034, a year earlier than expected. If Congress…
Millions of Americans will soon receive a $400 stimulus check automatically. No application or paperwork…
Zohran Mamdani, a 33-year-old democratic socialist, is running for New York City mayor with plans…
Alaska residents waiting for their $1,702 stimulus payment won’t have to wait long. The next…
Choosing when to start Social Security at 62, 67, or 70 can change how much…
High-yield savings accounts are still giving better interest than regular ones in 2025. Experts say…