2025 IRMAA Adjustments for Medicare
November 8, 2024, the Centers for Medicare & Medicaid Services (CMS) released the 2025 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs, and the 2025 Medicare Part D income-related monthly adjustment amounts. We have prepared a Print & Post Fact Sheet for the 2025 IRMAA brackets.
The official release from CMS can be found here.
The Medicare Income-Related Monthly Adjustment Amount (IRMAA) is an additional charge applied to Medicare Part B and Part D premiums for beneficiaries with higher incomes. This adjustment helps Medicare remain sustainable by asking higher earners to contribute more. The Social Security Administration determines IRMAA based on a beneficiary’s Modified Adjusted Gross Income (MAGI) from two years prior. If an individual’s income surpasses specific thresholds, they will pay an IRMAA in addition to their standard Medicare premium.
IRMAA applies to both individuals and couples who file jointly, with rates escalating in tiers as income increases. This adjustment can change annually, reflecting changes in income levels and Medicare cost projections. If a beneficiary experiences a life-changing event that significantly reduces their income, such as retirement, they may request a reconsideration of the IRMAA. Understanding IRMAA is crucial for higher-income Medicare beneficiaries to anticipate healthcare costs accurately.
The Employee Training & Development Partner for Independent Financial Advisory Firms
Subscribe to our email list