Information on Medicare Plans and Medicare Health Insurance

What is Part D IRMAA?

Part D IRMAA is the shorthand abbreviation for Income-Related Monthly Adjustment Amount. Your Medicare Part D drug coverage premium is adjusted for income. The premium increases with higher incomes. If you have a high income, you will be responsible for also paying a Part D IRMAA. This is in addition to the prescription drug plan premium.

You pay a premium whether you receive Part D coverage from a singke Medicare Prescription Drug Plan, a Medicare Advantage plan that includes a Prescription Drug Plan, or a Medicare Cost Plan that includes Medicare Prescription Drug Plan. This affects you even if you receive Part D coverage through your employer.

This 2013 IRMAA changes affect less than 5% of all Medicare beneficiaries. So, 95% of the beneficiaries will continue to pay the Part D premium only. IRMAA is determined by your reported IRS income to the Social Security Administration. The Social Security office will send you a notice if you need to pay an extra amount on top of your monthly Part D plan premium.

The specific amounts the you may need to pay in 2013 are as follows:

Beneficiaries who file individual tax returns with income that is:

  • Less than or equal to $85,000: $0.00
  • Greater than $85,000 and less than or equal to $107,000: $11.60
  • Greater than $107,000 and less than or equal to $160,000: $29.90
  • Greater than $160,000 and less than or equal to $214,000: $48.30
  • Greater than $214,000: $66.60

Beneficiaries who file joint tax returns with income that is:

  • Less than or equal to $170,000: $0.00
  • Greater than $170,000 and less than or equal to $214,000: $11.60
  • Greater than $214,000 and less than or equal to $320,000: $29.90
  • Greater than $320,000 and less than or equal to $428,000″ $48.30
  • Greater than $428,000: $66.60

Beneficiaries who are married but file separate tax returns with income that is:

  • Less than or equal to $85,000: $0.00
  • Greater than $85,000 and less than or equal to $129,000: $48.30
  • Greater than $129,000: $66.60

This is how it works:

  • Medicare Part D beneficiaries affected by the 2013 IRMAA will receive a letter from the Social Security Administration notifying them of their Medicare Part D plan premium increase.
  • The additional monthly Part D income-related adjustment amount is not collected by the Medicare Part D plans. It must be paid directly to the Federal government, not to the plans.
  • The IRMAA will be directly deducted from your Social Security, Railroad Retirement Board, or Office of Personnel Management benefits.
  • If there are insufficient funds from the above resources, Medicare will bill you directly.

Comments are closed.