One of the more commonly asked questions about the Medicare program is “How much is Medicare going to cost me?” The short answer is that it will vary. Medicare premiums are a standard amount for most people but in certain situations, it can vary.
For most people, Medicare Part A is $0 premium. When you turn 65, you will get Part A for $0 if you are receiving or are eligible to receive social security benefits even if you have not yet filed for them. If you are under 65, you are eligible for Medicare Part A at $0 premium if you are approved for social security disability and waited a 24 month waiting period or if you have end stage renal disease and meet certain requirements. If you do not meet these qualifications, Medicare Part A could have a monthly premium associated with it. Your Part A premium is never based on income or your financial situation.
Medicare Part B, on the other hand, can vary based on your financial picture. The base monthly premium for Medicare Part B is $170.10 as of January 2022. For those that are drawing social security benefits, the Medicare Part B premium will be deducted automatically from their check. For those not yet drawing Social Security benefits, the Medicare Part B premium will be billed to the beneficiary directly.
Some people may pay more for Part B if they are considered a high wage earner. If you fall into this category, you will be accountable for a premium adjustment. This is called IRMAA which stands for Income-Related Monthly Adjustment Amounts. IRMAA can affect both Medicare Part B and Medicare Part D premiums.
The determination of IRMAA is done when you first apply for Medicare. Your taxable income on your last filed tax return will be used to determine if you fall into this category. You’ll then receive an initial determination notice in the mail 20 days or more after getting the predetermination notice. This will include information about the IRMAA, when it goes into effect, and steps that you can take to appeal it.
You won’t have to take any additional action to pay the surcharges associated with the IRMAA. They will be automatically added to your premium bills.
Each year, the SSA reevaluates whether an IRMAA should apply to your Medicare premiums. So, depending on your income, an IRMAA could be added, updated, or removed. If you have a change or expect a change in your income mid-year there is an appeals process that you can go through at that time.
Medicare Part B premiums and IRMAA surcharges are usually deducted directly from monthly Social Security benefits. People who aren’t yet claiming Social Security are billed directly by Medicare.
Here are the levels of income along with the premium amounts for Medicare Part B.
Medicare Part D IRMAA surcharges are also usually deducted directly from monthly Social Security benefits. People who aren’t yet claiming Social Security are billed directly by Medicare.
Here are the levels of income along with the premium amounts for Part D.
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