Medicare IRMAA - High-Income Surcharges
What to Know About Income-Related Medicare Premium Increases
If your Medicare Part B or Part D premiums are higher than expected, IRMAA might be the reason. Medicare IRMAA-short for Income-Related Monthly Adjustment Amount-is an additional charge added to your premium if your income exceeds certain thresholds.
At The HgO Group, we help you understand how IRMAA works, when it applies, and how to appeal if your income has changed since the IRS calculated your premium.
What Is IRMAA?
IRMAA is a surcharge that affects high-income Medicare beneficiaries. If your income, as reported on your tax return from two years ago, exceeds specific limits, the Social Security Administration (SSA) applies this surcharge to both:
Your Medicare Part B (medical insurance) premium
Your Medicare Part D (prescription drug coverage) premium
For example, your 2025 premiums are based on your Modified Adjusted Gross Income (MAGI) from your 2023 tax return. Many people are surprised when they enroll in Medicare and discover they're paying more than the "standard" rate due to IRMAA.
Know Your 2025 IRMAA Rates
IRMAA Thresholds & Surcharge Amounts (2025)
Here's how IRMAA works for 2025 (subject to change annually). The standard Part B premium is $185/month, but it increases as your income goes up:
| Filing Status | 2023 MAGI | Monthly Part B Premium | Monthly Part D IRMAA |
|---|---|---|---|
| Single: ≤ $103,000 | No IRMAA | $185 | Plan Premium |
| Joint: ≤ $206,000 | |||
| $103,001-$129,000 | + IRMAA Tier 1 | ~$259 | +$12.90 |
| $206,001-$258,000 | |||
| $129,001-$161,000 | + IRMAA Tier 2 | ~$331 | +$33.30 |
| $258,001-$322,000 | |||
| $161,001-$193,000 | + IRMAA Tier 3 | ~$403 | +$53.80 |
| $322,001-$386,000 | |||
| $193,001-$500,000 | + IRMAA Tier 4 | ~$476 | +$74.20 |
| $386,001-$750,000 | |||
| Above $500,000 (Single) | + IRMAA Tier 5 | ~$506 | +$81.00 |
| Above $750,000 (Joint) |
Note: These amounts reflect 2025 figures and are updated yearly. Check back in the fall for the 2026 IRMAA chart.
How IRMAA Impacts Your Medicare Premium
Here's a real-world example:
If you filed your 2023 taxes as a single filer with a MAGI of $200,000, your 2025 Medicare Part B premium would be approximately $403/month instead of $185. That's due to an IRMAA surcharge of $218 per month.
This also applies to Part D plans. If you're in that income bracket, you'll pay an additional $53.80/month on top of your plan's regular premium.
The IRMAA surcharge is paid directly to Medicare, not to the insurance company offering your plan.
IRMAA Affects Part D
What About IRMAA for Prescription Drug Coverage (Part D)?
Many people don't realize IRMAA also applies to Part D drug plans. Whether you have a standalone Part D plan or drug coverage through a Medicare Advantage plan, the surcharge still applies if your income exceeds the thresholds.
Even if your plan's monthly premium is $20 or $30, you may receive a bill from Medicare for additional IRMAA charges, which are paid separately. This can come as a surprise if you're enrolling for the first time.
Your Foundation for Medicare Protection
Can I Appeal an IRMAA Decision?
Yes-if your income has gone down due to a life-changing event, you can ask the SSA to recalculate or remove the IRMAA surcharge.
Qualifying life changes include:
- Retirement or reduced work hours
- Divorce or marriage
- Death of a spouse
- Loss of income from income-producing property
To appeal, you'll need to complete Form SSA-44 (available on SSA.gov) and submit documentation of the income change. The HgO Group can walk you through this process and help determine if you qualify for an adjustment.
Keep Informed: IRMAA Updates Every Year
The IRMAA income brackets are reviewed annually and often change to reflect inflation and policy updates. We update this page each year so you can always find the current IRMAA threshold chart and cost breakdown here.
Be sure to revisit this page in October, when the new numbers are typically released for the following year.
Have Questions About IRMAA or Your Medicare Premiums?
If your Medicare premiums seem higher than expected-or you've received an IRMAA letter-don't panic. We can help you understand what's happening and what you can do next.
Contact our team
for a free consultation or