Part D IRMMA

What is Medicare Part D IRMAA?

Can I Avoid Medicare Part D IRMAA? Medicare Part D IRMAA stands for Income-Related Monthly Adjustment Amounts that affects higher income beneficiaries. Basically, the government is making you pay more for being successful.  Those who belong to that bracket have to pay an additional amount to their monthly Medicare Part B and Part D monthly premiums as required by Medicare. Medicare Part B covers out-patient medical costs, while Part D pays for your prescription drug costs.

Who Gets Affected by the Part D IRMAA?

After addressing the question, ‘What is Medicare Part D IRMAA?’, the next question is who gets affected or who gets to pay the Part D IRMAA.

High income individuals, who make up less than 5% of Medicare beneficiaries, pay the Part D IRMAA. These are individuals who earn more than $85,000 a year, and couples who filed a joint income tax of more than $170,000 a year. To get a more specific idea how much you have to pay, here’s a table to simplify it.

If you filed an individual tax return and your income is: If you are a couple who filed a joint income tax return and your income is:

 

The monthly cost of your additional Part D on top of your monthly premium in 2013
 

More than $85,000 but less than or equal to $107,000

 

 

 

More than $170,000 but less than or equal to $214,000

 

 

$11.60

 

More than $107,000 but less than or equal to $160,000

 

 

 

More than $214,000 but less than or

equal to $320,000

 

 

$29.90

 

More than $160,000 but less than or equal to $214,000

 

 

 

More than $320,000 but  less than or

equal to $428,000

 

 

$48.30

 

More than $214,000

 

 

 

More than $428,000

 

$66.60

 

If you are a couple who filed a separate income tax return and your income is: The monthly cost of your additional Part D on top of your monthly premium in 2013
 

More  than $85,000 but less than or equal to $129,000

 

 

$48.30

More than $129,000

$66.60

 

How Do You Know if You Have Part D IRMAA?

Aside from the income bracket indicated above, policy holders who have Part D IRMAA will be notified by the Social Security Administration if they are part of this adjustment or not. This is determined every year in line with the Modified Adjusted Gross Income as indicated by your two-year income tax return report.

Once the assessment is done, the SSA will notify you at the end of November. If you have just purchased Part D coverage, you will be notified as soon as your policy kicks in. For example, if you purchased Part D coverage after the assessment, you will be notified by the SSA on January 1, if you are included in the IRMAA.

The SSA will include information how to file for reconsideration if you think you’re income has been assessed incorrectly. Aside from this, it also includes how to apply for reconsideration if you have undergone some life changing events, such as divorce or marriage.

How Do You Pay Your Part D IRMAA?

Generally, most people have their Part D IRMAA deducted from their Social Security benefits. However, if you aren’t a recipient of Social Security benefits or the amount of your benefit is not enough to pay for Part D IRMAA, the CMS will directly bill you.

Furthermore, if you are a recipient of the Railroad Retirement Board benefits, the board is responsible for billing you directly. Remember that Part D IRMAA is paid monthly and not quarterly like Part B. 

How can I avoid IRMAA?

Can I Avoid Medicare Part D IRMAA? If Medicare has your income correct then you cannot avoid IRMMA.  What you CAN do is adjust your insurance plan premium to offset the extra cost you have to pay with IRMMA.  Here at Medicare Pathways we specialize in Medicare and work with many clients to find the most affordable options to offset the extra burden of IRMMA.  A Medicare Pathways Benefit Advisor can help you review your options and save you on premium.  Please click here for a quote or call 1-866-466-9118 to speak with a Benefit Advisor now!