What is IRMAA?
The Medicare Income-Related Monthly Adjustment Amount (IRMAA) is a surcharge that high earners may have to pay. The Medicare IRMAA for Part B went into effect in 2007. The IRMAA for Part D was implemented as part of the Affordable Care Act in 2011.
IRMAA payments go directly to Medicare, even if you pay monthly premiums to an insurance company for Medicare Advantage or Part D prescription drug coverage.
Social Security Administration (SSA) establishes 4 income ranges that determine your IRMAA. SSA determines if you owe an IRMAA based on the income you reported on your federal tax return two years prior. For example, in 2021, SSA will look into your 2019 income data you filed with your tax return. The income that counts is the adjusted gross income (AGI) you reported plus other forms of tax-exempt income.
If you are expected to pay IRMAA, SSA will notify you that you have a higher Part B premium.
2021 Income Ranges and Medicare Part B Premium
What can I do with IRMAA?
SSA can make a determination if you must pay IRMAA at any time after you apply for Medicare benefits.
If you receive a notice from the SSA that you owe IRMAA, and you disagree with the finding, you can file an appeal with your “initial determination” notice.
You can also file this form if you experience a life-changing event that has significantly impacted your income for the year.
If you believe you should not pay IRMAA or your circumstances have changed, you have the right to request SSA to lower your IRMAA.
You will have to submit evidence whether you are appealing SSA’s original determination or requesting a new determination.
Qualifying Reasons for IRMAA Appeal
- marriage, divorce or being widowed
- loss of income-producing property
- changes or termination of a pension
- receipt of a settlement from an employer due to company closure or bankruptcy
Do you need IRMAA Appeal Assistance?
Skyline Benefit is an independent Medicare agency with the expertise in Medicare enrollment and IRMAA appeal. Skyline Benefit also offers a network of major carrier options including Blue Shield, Humana, SCAN, United Healthcare, Aetna, and Anthem.
Your relationship with Skyline Benefit does not end at the enrollment and sale. Instead, we will be an advocate for you in many years to come, helping you address concerns with your insurance coverage.
We can help you review your healthcare coverage needs annually so that, as time goes by, you will continue to have the right plan for any changing needs.
If you need assistance with your IRMAA appeal or Medicare enrollment, give us a call at (714) 888-5112 or you can also book a virtual appointment.