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2025 Medicare Premiums: IRMAA for Parts B and D

Umito November 10, 2024

If you have Health insurance Prescription drug coverage Part B and/or Medicare Part D, you may be required to pay a monthly supplement based on an Income Related Monthly Adjustment Amount (IRMAA). These surcharges apply to enrollees in Original Medicare and Medicare Advantage plans.

The 2025 IRMAA income brackets and Part D surcharges have been announced. This year, Medicare beneficiaries with incomes above $106,000 (for single filers), $212,000 for joint filers, and $106,000 (for married individuals filing separately) will pay the surcharge. The IRMAA supplement amounts for Part B are still unpaid.

Your eligibility for IRMAA is determined by the Social Security Administration and represents an increase of Standard Monthly Medicare Part B and Part D Premiums. THE The IRMAA supplement is calculated on a sliding scale with five income brackets reaching $500,000 and $750,000 for individual and joint filings, respectively. These numbers change each year with inflation. The IRMAA calculations have a two-year lag. Whether you pay IRMAA in 2025 depends on the income reported on your 2023 tax returns.

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You should be aware of the risk of a one-off increase in income which could trigger IRMAA. For example, correctly sync a Roth conversionyou can avoid IRMAA when you convert and when you take distributions. Learn about strategies like how to lower taxes on required minimum distributions.

Here’s a look at IRMAA and what it could cost you in 2025.

What is IRMAA?

The IRMAA is a surcharge that some Medicare enrollees must pay on top of regular Medicare Part B and Part D premiums. The surcharge is based on your modified adjusted gross income (MAGIC) from two years ago. In other words, the 2025 IRMAA brackets are based on your 2023 MAGI.

The SSA determines who pays an IRMAA based on income reported two years prior. So, the SSA is looking at your 2023 tax returns to see if you need to pay an IRMAA in 2025.

For 2025, beneficiaries whose 2023 income exceeded $106,000 (individual filing) or $212,000 (joint filing) pay a higher total Medicare Part B premium amount based on income. The Centers for Medicare and Medicaid Services (CMS) has not yet released the 2025 IRMAA supplement amounts for Part B. The base Part B premium for Part B is $185.00, an increase of $10.60 from 2024.

You can easily determine your total Part B and Part D premiums for 2025 by adding the income-related monthly adjustment amount to the cost of the 2025 premiums. For 2025, the Part B premium is $185.00 and the Part D is on average $46.50.

Income brackets and surtax amounts for Part B and Part D of the IRMAA

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Bachelor	Married filing jointly	Monthly adjustment amount linked to Part B income	Part D Monthly Income-Related Adjustment Amount
Less than or equal to $106,000	Less than or equal to $212,000	$0.00	$0.00
Greater than $106,000 and less than or equal to $133,000	Greater than $212,000 and less than or equal to $266,000	To be announced	$13.70
Greater than $133,000 and less than or equal to $167,000	Greater than $266,000 and less than or equal to $334.00	To be determined	$35.30
Greater than $167,000 and less than or equal to $200,000	Greater than $334.00 and less than or equal to $400,000	To be determined	$57.00
More than $200,000 and less than $500,000	More than $400,000 and less than $750,000	To be determined	$78.60
Greater than or equal to $500,000	Greater than or equal to $750,000	To be determined	$85.80

Income adjustments for Medicare enrollees who are married and living with their spouse at any time of the year, but who file separate tax returns from their spouse, are higher than for married couples filing jointly.

Here are the 2024 IRMAA amounts for married taxpayers filing separately:

Cover of Part B. For 2025, if your income is greater than $106,000 and less than $394,000, the IRMAA amount is $406.90. If income is greater than or equal to $394,000, the IRMAA is $443.90.

Medicare Part D. If your income is greater than $106,000 and less than $394,000, the IRMAA amount is $78.60. If income is greater than or equal to $394,000, the IRMAA amount is $85.80.

Types of income that trigger IRMAA

The Medicare supplement is based on your modified adjusted gross income (MAGI) from two years ago. Use your 2023 tax return to see if you owe the supplement in 2025.

For 2025, the supplement is based on your MAGI in 2023. For purposes of calculating the supplement, MAGI consists of your adjusted gross income plus:

Tax-exempt interest that has been earned or accrued. For example, municipal bondswhich may be important for many retirees
U.S. Savings Bond Interest Used for Qualified Education Expenses
Income earned abroad that has been excluded from gross income
Tax-free income from U.S. territories including: Puerto Rico, Guam, American Samoa, and the Northern Mariana Islands

A well-timed Roth IRA conversion can help you avoid IRMAA, because distributions from Roth accounts do not count toward your MAGI.

The good news is that you can appeal and request a new determinationespecially if you have experienced a life-changing event, such as the death of a spouse or loss of pension income.

How to pay your IRMAA Part B and Part D

IRMAA supplements for Part B and Part D are paid separately. Part B IRMAA is automatically added to your monthly premium bill. Whereas Part D IRMAA must be paid directly to Medicare, not your plan or employer. It is your responsibility to pay it even if your employer or a third party (for example, a retirement system) pays the premiums for your Part D plan. You will receive a bill from Medicare each month for your Part D IRMAA and can pay it the same way you pay your Part B premiums.

All Medicare bills are due on the 25th of the month. In most cases, your premium is due the same month you receive the bill. If you miss a payment or Medicare receives your payment late, your next bill will also include an overdue amount.

Here are four ways to pay your Part B premium:

Online via your secure Medicare account which is the fastest payment method. Use this free service to pay by credit card, debit card or from your checking or savings account. Do not create or use a Pay.gov account to make your Medicare payment. Use your Medicare account to pay your bill
Register for Easy Medicare Payment. With this free service, Medicare automatically deducts your premium payments from your savings or checking account each month. It may take up to 6-8 weeks for your automatic deductions to begin. You will have to pay your premiums another way until your automatic deductions begin.
Send your payment to Medicare. Pay by check, money order, credit card or debit card. Complete the payment coupon at the bottom of your invoice and include it with your payment. If paying by credit or debit card, be sure to complete and sign the coupon. If you do not have your payment coupon, write your Medicare number on the check or money order. If you do not sign the coupon, Medicare will not be able to process your payment and it will be returned to you. Use the return envelope provided with your bill and send your Medicare payment coupon and payment to: Medicare Premium Collection Center PO Box 790355 St. Louis, MO 63179-0355
Use your bank’s online bill payment service

Notification of IRMAA Liability and What You Can Do

If Social Security determines that you must pay an IRMAA, it will send you a notice called an initial determination. This notice must include information on how to request a new initial determination. An initial redetermination is a revised decision made by Social Security regarding your IRMAA.

If you can demonstrate to Social Security that a “life-changing event” affected your income, it will reduce or eliminate your premiums. If your request for reconsideration is refused, you can appeal this decision. There are three additional levels of appeal that you can attempt: at Office of Medicare Hearings and AppealsAt Medicare Appeals Board and finally to the federal district court in your home. You may need to hire an attorney for some of these tiers, which are primarily used by beneficiaries who appeal coverage decisions.

Conclusion

IRMAA is a “cliff” supplement. This means that if your modified adjusted gross income exceeds the threshold by just a dollar, you will have to pay higher premiums. Your eligibility is based on your income two years before an assessment. In 2025, it is based on your 2023 income.

One way to reduce your risk of paying IRMAA is to avoid one-time income spikes that could trigger IRMAA. To avoid this risk, be sure to Properly Timing a Roth Conversion; you can then avoid IRMAA when you convert and accept distributions.

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2025 Medicare Premiums: IRMAA for Parts B and D

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2025 Medicare Premiums: IRMAA for Parts B and D

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