Income Related Monthly Adjustment Amount (IRMAA)
How much does Part B cost?
You pay a premium each month for Part B. Your Part B premium will be automatically deducted from your benefit payment if you get benefits from one of these:
- Social Security
- Railroad Retirement Board
- Office of Personnel Management
If you don’t get these benefit payments, you’ll get a bill.
Most people will pay the standard premium amount. If your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA). Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago. This is the most recent tax return information provided to Social Security by the IRS.
2021
The standard Part B premium amount in 2021 is $148.50. Most people pay the standard Part B premium amount. If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you'll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.
|
If your yearly income in 2019 (for what you pay in 2021) was |
|||
|---|---|---|---|
| File individual tax return | File joint tax return | File married & separate tax return | You pay each month (in 2021) |
| $88,000 or less | $176,000 or less | $88,000 or less | $148.50 |
| above $88,000 up to $111,000 | above $176,000 up to $222,000 | Not applicable | $207.90 |
| above $111,000 up to $138,000 | above $222,000 up to $276,000 | Not applicable | $297.00 |
| above $138,000 up to $165,000 | above $276,000 up to $330,000 | Not applicable | $386.10 |
| above $165,000 and less than $500,000 | above $330,000 and less than $750,000 | above $88,000 and less than $412,000 | $475.20 |
| $500,000 or above | $750,000 and above | $412,000 and above | $504.90 |
In 2021, you pay $203 for your Part B Deductible. After you meet your deductible for the year, you typically pay 20% of the Medicare-approved amount for these:
- Most doctor services (including most doctor services while you're a hospital inpatient)
- Outpatient therapy
How much does Part D cost?
Most people only pay their Part D premium. If you don't sign up for Part D when you're first eligible, you may have to pay a Part D late enrollment penalty.
If you have a higher income, you might pay more for your Medicare drug coverage. If your income is above a certain limit ($87,000 if you file individually or $174,000 if you’re married and file jointly), you’ll pay an extra amount in addition to your plan premium (sometimes called “Part D-IRMAA”). You’ll also have to pay this extra amount if you’re in a Medicare Advantage Plan that includes drug coverage. This doesn’t affect everyone, so most people won’t have to pay an extra amount. If you have Part B and you have a higher income, you may also have to pay an extra amount for your Part B premium, even if you don’t have drug coverage. The chart below lists the extra amount costs by income.
Social Security will contact you if you have to pay Part D IRMAA, based on your income. The amount you pay can change each year. If you have to pay a higher amount for your Part D premium and you disagree (for example, if your income goes down), use this form to contact Social Security [PDF, 125 KB]. If you have questions about your Medicare drug coverage, contact your plan.
| If your filing status and yearly income in 2019 was: | |||
|---|---|---|---|
| File individual tax return | File joint tax return | File married & separate tax return | You pay each month (in 2021) |
| $88,000 or less | $176,000 or less | $88,000 or less | your plan premium |
| above $88,000 up to $111,000 | above $176,000 up to $222,000 | Not applicable | $12.30 + your plan premium |
| above $111,000 up to $138,000 | above $222,000 up to $276,000 | Not applicable | $31.80 + your plan premium |
| above $138,000 up to $165,000 | above $276,000 up to $330,000 | Not applicable | $51.20 + your plan premium |
| above $165,000 and less than $500,000 | above $330,000 and less than $750,000 | above $88,000 and less than $412,000 | $70.70 + your plan premium |
| $500,000 or above | $750,000 and above | $412,000 and above | $77.10 + your plan premium |