Resources
- by Christian Worstell
- October 19, 2023
- Reviewed by John Krahnert
2024 Medicare IRMAA (Income-Related Monthly Adjustment Amount) amounts are increased premiums higher income earners must pay for Medicare Part B and Part D benefits. Here’s how it works.
The standard premium for Medicare Part B is $174.70 in 2024. However, some people may receive a bill for more than that amount along with an IRMAA (Income-Related Monthly Adjustment Amount) notice.
What is IRMAA and how might it affect your Medicare costs?
Speak with a licensed insurance agent
1-800-557-6059
What is IRMAA for 2024?
The income limit for IRMAA in 2024 is $103,000 for individuals and $206,000 for couples.
IRMAA represents the additional amount that some people might have to pay for their Medicare Part B (medical insurance) or Part D (Medicare prescription drug plans) coverage.
Medicare beneficiaries who have to pay a higher monthly premium for their benefits because of IRMAA must do so because they are categorized as a higher income earner.
How is IRMAA calculated?
Your Medicare Part B and Part D premiums are based on your modified adjusted gross income (MAGI) that is reported on your IRS tax return from two years prior. For example, your 2024 Medicare Part B premiums will be based on your reported income from 2022.
If your 2022 MAGI was $103,000 or less when filed individually (or married and filing separately), or $206,000 or less when filed jointly, you will pay the standard Part B premium of $174.70 per month in 2024, and you won’t pay a Part B IRMAA.
If you are enrolled in a Part D plan and your MAGI is in the above range, you would pay only the standard premium cost of your Part D plan in 2024, and you won’t pay a Part D IRMAA.
But if your modified adjusted gross income from 2022 is more than those amounts, you will pay more than the standard Part B and Part D premiums in 2024, because you will pay an IRMAA.
The full breakdown is as follows:
| 2022 Individual tax return | 2022 Joint tax return | 2022 Married and separate tax return | 2024 Part B premium | 2024 Part D premium |
|---|---|---|---|---|
$103,000 or less | $206,000 or less | $103,000 or less | $174.70 | Your plan premium |
More than $103,000 and up to $129,000 | More than $206,000 and up to $258,000 | N/A | $244.60 | Your plan premium + $12.90 |
More than $129,000 up to $161,000 | More than $258,000 up to $322,000 | N/A | $349.40 | Your plan premium + $33.30 |
More than $161,000 up to $193,000 | More than $322,000 up to $386,000 | N/A | $454.20 | Your plan premium + $53.80 |
More than $193,000 up to $500,000 | More than $386,000 up to $750,000 | More than $103,000 up to $397,000 | $559.00 | Your plan premium + $74.20 |
More than or equal to $500,000 | More than or equal to $750,000 | More than or equal to $397,000 | $594.00 | Your plan premium + $81.00 |
You will also generally pay the standard Part B premium if:
- You enrolled in Part B for the first time in 2023
- You do not receive Social Security benefits
- You receive Social Security benefits, but your Part B premiums are not directly deducted from your Social Security benefits
*If you are subject to a Part D IRMAA, you may be able to save money by enrolling in a Medicare Advantage plan that includes prescription drug coverage.
Because IRMAA is based on your reported income from two years prior, the amount you have to pay for a Medicare IRMAA is subject to change every year.
Are you looking for Medicare prescription drug coverage?
You can compare Part D plans available where you live and enroll in a Medicare prescription drug plan onlinewhen you visit MyRxPlans.com.
Speak with a licensed insurance agent
1-800-557-6059
Why is there a Part D IRMAA?
The Part D IRMAA assessment is needed for those on Medicare that are making above certain incomes each year.
IRMAA was enacted for Medicare Part B premiums in 2003 as a provision of the Medicare Modernization Act. It was then expanded to Part D coverage in 2011 as part of the Affordable Care Act (ACA, also called Obamacare).
IRMAA was developed by the federal government as a means of strengthening the financial stability of the Medicare program. The government pays a majority share (around 75 percent) of the costs for Part B and Part D benefits, while beneficiaries contribute roughly 25 percent.
With the future of Medicare on uncertain ground, cost-sharing measures like IRMAA have the potential to help prolong the financial stability of the largest health care program for seniors in the U.S.
If you are subject to paying higher Medicare premiums because of IRMAA, you will be notified by the Social Security Administration.
What are my Medicare plan options?
Have more questions about IRMAA or other costs associated with Medicare? Looking for ways to save money on your Medicare coverage?
You can learn more about your Medicare plan options and find a plan that may be able to help you save money. Speak with a licensed insurance agent to find out more.
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About the author
Christian Worstell is a senior Medicare and health insurance writer with MedicareAdvantage.com. He is also a licensed health insurance agent. Christian is well-known in the insurance industry for the thousands of educational articles he’s written, helping Americans better understand their health insurance and Medicare coverage.
Christian’s work as a Medicare expert has appeared in several top-tier and trade news outlets including Forbes, MarketWatch, WebMD and Yahoo! Finance.
Christian has written hundreds of articles for MedicareAvantage.com that teach Medicare beneficiaries the best practices for navigating Medicare. His articles are read by thousands of older Americans each month. By better understanding their health care coverage, readers may hopefully learn how to limit their out-of-pocket Medicare spending and access quality medical care.
Christian’s passion for his role stems from his desire to make a difference in the senior community. He strongly believes that the more beneficiaries know about their Medicare coverage, the better their overall health and wellness is as a result.
A current resident of Raleigh, Christian is a graduate of Shippensburg University with a bachelor’s degree in journalism.
If you’re a member of the media looking to connect with Christian, please don’t hesitate to email our public relations team at Mike@tzhealthmedia.com.
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As a seasoned expert in the field of Medicare and health insurance, I bring a wealth of knowledge and experience to shed light on the intricacies of the 2024 Income-Related Monthly Adjustment Amount (IRMAA) for Medicare Part B and Part D benefits. My expertise is grounded in a comprehensive understanding of the Medicare program, its legislative history, and the intricate details of income-related adjustments.
The 2024 IRMAA brackets and rules, as outlined by Christian Worstell in his October 19, 2023 article, play a crucial role in determining the premiums higher income earners must pay for Medicare Part B and Part D. The standard premium for Medicare Part B in 2024 is established at $174.70. However, individuals and couples may find themselves subject to additional costs due to the IRMAA.
IRMAA, or Income-Related Monthly Adjustment Amount, is essentially an extra premium that certain Medicare beneficiaries are required to pay based on their income level. The income limits for IRMAA in 2024 are set at $103,000 for individuals and $206,000 for couples. This means that if your modified adjusted gross income (MAGI) from two years prior exceeds these limits, you will face higher premiums.
The calculation of IRMAA is intricately tied to your MAGI, as reported on your IRS tax return from two years prior. For instance, your 2024 Medicare Part B premiums are determined by your reported income from 2022. If your MAGI in 2022 was $103,000 or less for individuals (or married and filing separately), or $206,000 or less for joint filers, you pay the standard Part B premium of $174.70 per month in 2024.
The IRMAA brackets for 2024 illustrate the tiered structure of additional premiums based on income levels. For instance, if your MAGI falls between $103,000 and $129,000 (or $206,000 to $258,000 for joint filers), your Part B premium increases to $187.60. The increments continue for higher income brackets, with the top bracket, those with an MAGI equal to or exceeding $500,000 (or $750,000 for joint filers), incurring an additional premium of $81.00, bringing the total to $594.00.
It's important to note that IRMAA not only applies to Part B but also extends to Part D for Medicare prescription drug plans. If your income falls within the specified limits, you pay only the standard premium for your Part D plan. However, exceeding these limits results in additional IRMAA costs.
The introduction of Part D IRMAA stems from the Medicare Modernization Act of 2003, initially for Part B premiums, and was expanded to Part D coverage in 2011 as part of the Affordable Care Act (ACA). This adjustment was designed to enhance the financial stability of the Medicare program by implementing cost-sharing measures. The government shoulders approximately 75 percent of the costs for Part B and Part D benefits, while beneficiaries contribute around 25 percent.
Notifications regarding IRMAA and its impact on Medicare premiums are sent by the Social Security Administration, serving as a crucial aspect of financial planning for seniors. Additionally, the dynamic nature of IRMAA, influenced by reported income from two years prior, underscores the need for ongoing awareness and planning.
In conclusion, the 2024 IRMAA brackets and rules significantly impact the Medicare costs for higher income earners. Understanding the intricate calculation based on reported income, the tiered structure of premiums, and the historical context of IRMAA provides valuable insights for individuals navigating the complexities of Medicare Part B and Part D benefits. If you have further questions about IRMAA or other Medicare-related costs, consulting with a licensed insurance agent can provide tailored guidance and assistance in finding cost-effective Medicare coverage options.
