The Income-Related Monthly Adjustment Amount (IRMAA) is a surcharge that Medicare beneficiaries may be required to pay based on their income. IRMAA affects the premium amounts for both Medicare Part B (outpatient medical insurance) and Medicare Part D (prescription drug coverage). This article will provide a comprehensive overview of the 2022 IRMAA brackets and how they impact Medicare beneficiaries.
The 2022 IRMAA Brackets for Medicare: What You Need to Know
What is Income-Related Monthly Adjustment Amount (IRMAA)?
IRMAA is a means-tested adjustment that is applied to the standard premium amount for Medicare Part B and Part D. The standard premium amount is the same for everyone, regardless of income, but IRMAA is based on a person’s modified adjusted gross income (MAGI) as reported on their federal tax return from two years prior. For example, the 2022 IRMAA amounts are based on the MAGI reported on the 2020 tax return.
IRMAA is designed to make sure that those who can afford to pay more for their Medicare coverage do so. In addition, those with lower incomes continue to receive a lower premium amount. For as long as a beneficiary is enrolled in Medicare Part B or Part D, IRMAA is a monthly surcharge in addition to their standard premium.
2022 Medicare IRMAA Brackets
The 2022 IRMAA brackets have been adjusted to reflect changes in average Social Security beneficiary income and inflation. The following table outlines the 2022 IRMAA brackets for Medicare Part B and Part D:
| Individual MAGI | Couple MAGI | Part B Premium | Part D Premium |
|---|---|---|---|
| < $91,000 | < $182,000 | $170.10 | Premium (varies) |
| $91,000 - $114,000 | $182,000 - $228,000 | $238.10 | Premium + $12.40 |
| $114,000 - $142,000 | $228,000 - $284,000 | $340.20 | Premium + $32.10 |
| $142,000 - $170,000 | $284,000 - $340,000 | $442.30 | Premium + $51.70 |
| $170,000 - $500,000 | $340,000 - $750,000 | $544.30 | Premium + $71.30 |
| > $500k | > $750k | $578.30 | Premium + $77.90 |
It is important to note that the above amounts are for the standard premium for Medicare Part B and Part D. If a person’s income is above the IRMAA threshold, they will be required to pay the standard premium amount plus the IRMAA surcharge.
Types of Income Used to Calculate 2022 IRMAA Brackets
Medicare looks at certain types of income in order to determine which IRMAA bracket you are in. Note that depending on which ones of these you have, the calculation is based on all of the included types of income and determined on a year by year basis.
| Social Security Benefits | Distributions From: |
| Wages | Traditional 401(k) |
| Pensions and Rental Income | Traditional IRA |
| Interest | Traditional 403(b) |
| Capital Gains | Traditional Sep-IRA |
| Dividends | Qualified Investments and Annuities |
How to Appeal 2022 Medicare IRMAA Decision
If a person feels that their IRMAA amount is incorrect, they can file an appeal. There are several reasons why a person may want to file an appeal, including:
- They had a change in income or marital status
- They are no longer required to file a tax return
- They received a significant increase in Social Security benefits
To file an appeal, a person must complete the IRMAA Appeal Form and provide supporting documentation to prove that their income has changed. The form and supporting documentation
Who is Healthcare Retirement Planner
At Healthcare Retirement Planner we have spent the last 10 years researching the impact of IRMAA on Medicare and individual retirement plans. Taking the knowledge and applying it to helping financial professionals service their clients better.
We also provide individual guidance, seminars and software to help both financial professionals and individuals illustrate costs, impact and how to mitigate moving forward.
Healthcare Retirement Planner has also partnered with IRMAA Certified Planner to help educate and certify financial professionals. Through this designation, financial Professionals will be able illustrate and navigate structuring retirement plans to mitigate issues arising from IRMAA.