In 2024 the standard Part B monthly premium is $174.70 and the average monthly Part D plan premium is around $55.50. The law requires individuals that have a higher income pay more than this standard amount for their monthly Part B and Part D premiums. The additional amount is called the Income Related Monthly Adjustment Amount and is often referred to as IRMAA.
The Social Security Administration determines the individuals that qualify for the higher premiums based on federal tax returns provided to them by the IRS. The adjustments are based on modified adjusted gross income reported on taxes two years prior. So 2024 Medicare premiums will be based on 2022 tax returns. Modified adjusted gross income is the total adjusted gross income and tax-exempt interest income. A sliding scale based on income is used to make the adjustments to the standard premium. The chart below shows the additional premium amounts according to income. Individuals making less than $103,000 a year, and couples filing jointly making less than $206,000 are not affected by this law.
Individuals who are required to pay the additional premiums will not make the excess payments to the Part D plan sponsor. The payments will be taken out of Social Security or billed directly. Any questions about IRMAA should be made to the Social Security Administration at 1-800-772-1213.
| IRMAA Tier | Individual
Modified Adjusted Gross Income |
Married
Joint Modified Adjusted Gross Income |
Part B Premium (Monthly) | Part D Premium
(Monthly) |
| Baseline
|
$103,000 or less | $206,000 or less | Standard =
$174.70 |
Varies by plan (National average $55.50) |
| 1 | $103,001 -$129,000 | $206,001 to $258,000 | $244.60 | +$12.90 |
| 2 | $129,001 to $161,000 | $258,001 to $322,000 | $394.40 | +$33.30 |
| 3 | $161,001 to $193,000 | $322,001 to $386,000 | $454.20 | +$53.80 |
| 4 | $193,001 to $500,000 | $386,001 to $750,000 | $559.00 | +$74.20 |
| 5 | $500,001 or more | $750,001 or more | $594.00 | +$81.00 |
An appeal to an IRMMAA surcharge can be requested to the Social Security Administration when in disagreement with the income amount. Appeals may be granted if your financial circumstances have changed since the tax return was filed. Additional reasons one may be able to appeal include: death of a spouse, marriage or divorce, loss of a major source of income (such as job or income producing property) or if you think the Social Security Administration has the wrong tax information on file. It is recommended that you contact your tax advisor for additional advice and information on IRMAA.