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  • Writer's pictureJeran Van Alfen, CFP®

Medicare premium increase? Understanding IRMAA and How to Appeal.

Medicare premiums went up this year, but you may have noticed that your Part B and Part D premiums are higher than the standard amounts. If this is the case, you are most likely subject to an Income Related Monthly Adjustment Amount (IRMAA), which is an extra fee that Medicare charges to higher-income individuals. In this post, I will explain what IRMAA is, what changes have been made for 2024, and how to appeal it if you think it is incorrect. 

 

What is IRMAA? 

 

IRMAA stands for Income-Related Monthly Adjustment Amount, and it is a surcharge that Medicare adds to your Part B and Part D premiums based on your modified adjusted gross income (MAGI) from two years ago. For example, your 2024 IRMAA will be based on your 2022 tax return. 

 

The standard Part B premium for 2024 is $174.70 per month (up from $164.90 in 2023).  However, if your income exceeds certain thresholds, you will have to pay an additional amount.  The table below shows the income brackets and the corresponding IRMAA amounts for 2024: 



IRMAA may be based on outdated information. 

 

Since the Social Security Administration uses your income from the taxable year 2 years ago to determine if an IRMAA should be applied, a lot may have changed since then.  If you have had a life-changing event that affected your income, then it’s possible that you can appeal. 

 

How to appeal IRMAA; 

 

If you think that your IRMAA is incorrect, you have the right to appeal it to the Social Security Administration (SSA. Here are the events that qualify for an appeal of your IRMAA: 

  • Death of spouse 

  • Marriage 

  • Divorce or annulment 

  • Work reduction 

  • Work stoppage 

  • Loss of income from income-producing property 

  • Loss or reduction of certain kinds of pension income 

  • Employer settlement payment 

 

To appeal your IRMAA, you need to contact the SSA at 800-772-1213 or write to them. You may also need to complete the Medicare IRMAA: Life-Changing Event form and provide evidence of your income change, such as a tax return, a letter from your employer, or a death certificate.  (Obtain the form here: https://www.ssa.gov/medicare/lower-irmaa) 

 

Remember to act soon on this, because you must request a reconsideration within 60 days of receiving your IRMAA notice. 

 

If the SSA approves your appeal, they will adjust your monthly Medicare premiums and refund any overpayment. If they deny your appeal, they will explain why and inform you of your further appeal rights, which may include a hearing, a review by the Appeals Council, or a judicial review by a federal court. 

 

We are happy to help! 


Remember to check your Social Security benefits and adjustments each year.  In the years when you have additional income, we can plan ahead for how the income will affect your benefits.  If you are planning on retiring, then it is important to consider how your income will affect your Medicare premiums.  We are here for you when you need help figuring out a plan. 


Centered Financial, LLC is a registered investment adviser offering advisory services in the State of California, Utah, Texas and in other jurisdictions where exempted. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no assurance that the techniques, strategies, or investments discussed are suitable for all investors or will yield positive outcomes. To determine which strategies or investment(s) may be appropriate for you, consult your financial adviser prior to investing. Any discussion of strategies related to tax or legal planning is general and is not intended as tax or legal advice. Please consult appropriate tax and legal professionals for recommendations pertaining to your specific situation. 

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