The Medicare 2024 IRMAA Brackets are set to adjust even higher in 2024 as inflation is still an issue. If the IRMAA Brackets do in fact change it will mark only the 7th time since inception (2007) that they have moved.
What is IRMAA
IRMAA is short for Medicare’s Income Related Monthly Adjustment Amount, It is a surcharge on top of a person’s Medicare Part B and Part D premiums if they have too much income in a year.
In simpler terms, IRMAA is just a tax on income through Medicare if you have too much money..
What are the current IRMAA Brackets
The IRMAA Brackets in 2023 are:
| Individual MAGI | Couple MAGI | Part B | Part D (per/mo) |
|---|---|---|---|
| < $97,000 | < $194,000 | $164.90 | Premium (varies) |
| $97,000 - $123,000 | $194,000 - $246,000 | $230.80 | Premium + $12.40 |
| $123,000 - $153,000 | $246,000 - $306,000 | $329.70 | Premium + $32.10 |
| $153,000 - $183,000 | $306,000 - $366,000 | $428.60 | Premium + $51.70 |
| $183,000 - $500000 | $366,000 - $750,000 | $527.50 | Premium + $71.30 |
| >$500,000 | >$750,000 | $560.50 | Premium + $77.90 |
The Medicare 2024 IRMAA Brackets are set to adjust even higher in 2024 as inflation is still an issue. If the IRMAA Brackets do in fact change it will mark only the 7th time since inception (2007) that they have moved.
What is IRMAA
IRMAA is short for Medicare’s Income Related Monthly Adjustment Amount, It is a surcharge on top of a person’s Medicare Part B and Part D premiums if they have too much income in a year.
In simpler terms, IRMAA is just a tax on income through Medicare if you have too much money..
What are the current IRMAA Brackets
The IRMAA Brackets in 2023 are:
| Individual MAGI | Couple MAGI | Part B | Part D (per/mo) |
|---|---|---|---|
| < $97,000 | < $194,000 | $164.90 | Premium (varies) |
| $97,000 - $123,000 | $194,000 - $246,000 | $230.80 | Premium + $12.40 |
| $123,000 - $153,000 | $246,000 - $306,000 | $329.70 | Premium + $32.10 |
| $153,000 - $183,000 | $306,000 - $366,000 | $428.60 | Premium + $51.70 |
| $183,000 - $500000 | $366,000 - $750,000 | $527.50 | Premium + $71.30 |
| >$500,000 | >$750,000 | $560.50 | Premium + $77.90 |
What are the 2024 IRMAA Brackets?
Nothing is official yet, but by law the IRMAA Brackets adjust according to the Consumer Price Index for Urban Consumers (CPI-U).
From 2022 to 2023 the CPI-U, if inflation remains constant, will increase by 5.65%. This means that the IRMAA Brackets, by law, will increase at the same rate.
The possible 2024 IRMAA Brackets (not official)
2024 IRMAA Thresholds if CPI-U remains constant and legislation is not passed by Congress| Individual | Couple | Part B | Part D |
|---|---|---|---|
| $102,500 | $205,000 | $174.80 | Premium (varies) |
| $102,500 - $130,000 | $205,000 -$260,000 | $244.70 | Premium + $12.90 |
| $130,000 - $162,000 | $260,000 - $324,000 | $349.60 | Premium + $33.30 |
| $162,000 - $193,500 | $324,000 - $387,000 | $454.40 | Premium + $53.80 |
| $193,500 - $500,000 | $387,000 - $500,000 | $559.20 | Premium + $74.20 |
| > $500,000 | > $750,000 | $594.20 | Premium + $81.00 |
How the IRMAA Brackets adjust:
According to the Code of Federal Regulations when it comes to the IRMAA Brackets adjusting:
“The Centers for Medicare Services (CMS) will set all modified adjusted gross income threshold amounts for the following year by increasing the preceding year’s threshold amounts by any percentage increase in the Consumer Price Index rounded to the nearest $1,000”.
Meaning, CMS will look at the CPI-U average from the year before and match it up against the current year. If there is an increase then the IRMAA Brackets will increase too.
Please note, that if the CPI-U is lower in the new year there is a distinct possibility that the IRMAA brackets can go lower too.
The Math when it comes to adjusting the IRMAA Brackets:
From August 2021 to July 2022 the CPI-U , on average was 283.9647.
Currently, from August 2022 through June 2023 the CPI-U is averaging 299.9949.
This is a 5.65% increase from 2022 to 2023, but there is still one more month in 2023 and almost anything can happen
Conclusion:
Under current law, the 2024 IRMAA Brackets will increase. With the CPI-U being higher by 5.65% from last the IRMAA Brackets may go that high too.
Keep in mind that historically, Congress can step in and alter any increases.
To find a Certified IRMAA Professional in your area please visit us at IRMAA Certified Planner
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