In 2025, the Income-Related Monthly Adjustment Amount (IRMAA) will continue to impact high-income Medicare beneficiaries, resulting in higher premiums for Medicare Part B and Medicare Part D. These surcharges are determined based on your income from two years prior—in this case, your 2023 Modified Adjusted Gross Income (MAGI). Here’s everything you need to know about IRMAA and how it affects married couples filing jointly.
What Is IRMAA?
IRMAA is a surcharge added to Medicare premiums for individuals or couples whose incomes exceed certain thresholds. It ensures that higher-income beneficiaries contribute more toward their Medicare coverage.
For 2025, the standard premium for Medicare Part B is $185.00 per month. However, if your income exceeds specific thresholds, IRMAA surcharges will apply, significantly increasing your total premium.
IRMAA Income Thresholds
The IRMAA surcharges for 2025 are based on MAGI from your 2023 tax return. Here’s a detailed breakdown of how these surcharges apply to married couples filing jointly:
| MAGI Range (2023) | Part B Surcharge | Total Part B Premium |
|---|---|---|
| Up to $212,000 | None | $185.00 |
| $212,001–$266,000 | $13.70 | $198.70 |
| $266,001–$334,000 | $35.30 | $220.30 |
| $334,001–$400,000 | $57.00 | $242.00 |
| $400,001–$750,000 | $78.60 | $263.60 |
| Over $750,000 | $85.80 | $270.80 |
Key Notes:
- These surcharges apply in addition to the standard premium of $185.00 for Part B.
- Similar IRMAA surcharges also apply to Medicare Part D premiums, though the amounts vary depending on the plan.
Part D Premiums
For Medicare Part D, the IRMAA surcharge is also determined by your MAGI. While the base premium for Part D varies depending on your plan, the IRMAA surcharge is added on top of your regular premium.
For example:
- If your MAGI is between $212,001 and $266,000, your Part D surcharge will be $12.20.
- If your MAGI exceeds $750,000, your surcharge will increase to $75.10.
How to Manage IRMAA
Your MAGI includes your adjusted gross income (AGI) plus other forms of tax-exempt income, such as interest from municipal bonds. It’s important to review your 2023 tax return to understand where you fall within the income brackets.
Appealing IRMAA Surcharges
If you experience a life-changing event (e.g., retirement, divorce, or the death of a spouse) that reduces your income, you can appeal the IRMAA determination.
Steps to Appeal:
- Complete Form SSA-44 (Medicare IRMAA Life-Changing Event Form).
- Provide documentation of the life-changing event, such as a letter from your employer or proof of reduced income.
- Submit the form and supporting documents to your local Social Security office.
Consider Tax Planning
To minimize future IRMAA surcharges, consult with a financial advisor or tax professional. Strategies like Roth IRA conversions or managing withdrawals from taxable accounts can help reduce your MAGI.
Why IRMAA Matters
IRMAA can significantly increase your Medicare premiums, especially for high-income couples filing jointly. For example, a couple with a MAGI of $400,000 will pay an additional $78.60 per person on their Part B premiums, totaling $157.20 in surcharges for the household each month.
Being aware of these surcharges and planning accordingly can help you manage the financial impact and ensure you’re prepared for higher healthcare costs.
FAQs
What is the standard Medicare Part B premium for 2025?
The standard premium is $185.00 per month.
What is IRMAA?
IRMAA is a surcharge for high-income Medicare beneficiaries based on MAGI.
How is IRMAA calculated for married couples?
It’s based on MAGI from two years prior, using joint income thresholds.
Can I appeal IRMAA surcharges?
Yes, if you’ve had a life-changing event like retirement or reduced income.
What is the highest surcharge for Medicare Part B in 2025?
The highest surcharge is $85.80, bringing the total Part B premium to $270.80.
