Income Related Monthly Adjustment Amount (IRMAA)
In an earlier video, we talked about how IRMAA, that’s the Income Related Monthly Adjustment Amount, can affect your Medicare Part B premium, depending on your income. IRMAA also affects Medicare Part D prescription drug coverage costs.
Most people don’t have to pay this amount. However, if your income is above a certain limit, you’ll pay an extra amount in addition to your Medicare Part D plan premium. You’ll also have to pay this extra amount if you’re in a Medicare Advantage plan that includes Medicare Part D prescription drug coverage.
Confused about your Medicare coverage options? Watch our free video: How to Find the Best Medicare Coverage Without Paying More Than You Need To…
How do you know if you owe the Part D IRMAA?
The chart here lists the extra amount by income level that you would be responsible to pay. Social Security will contact you if you owe a Part D IRMAA based on your income.
Can you dispute the Part D IRMAA?
Just like the Part B IRMAA, the Part D IRMAA is also based off the income reported on your tax returns from two years ago. The amount you pay can change each year. If you have to pay a higher amount for your Part D premium and you disagree, for example because your income changed, you can dispute it with Social Security. Here is a link to the form that’s necessary to dispute that with Social Security: https://www.ssa.gov/forms/ssa-44-ext.pdf.
Does this extra charge go to the insurance company or Medicare?
Medicare Part D prescription drug coverage is not offered through Medicare itself. This is coverage that you purchase from private insurance companies. If you owe an Income Related Monthly Adjustment Amount, that amount is not paid to the insurance company. Instead, that amount gets paid to Medicare itself.
You can choose to have this amount deducted from your Social Security payment, or you can choose to receive a bill from Medicare.
If you do not pay your Medicare Part D prescription drug plan IRMAA, you can be disenrolled from your Medicare Part D plan.
Even if your employer pays for your Medicare Part D prescription plan premium, if you owe an IRMAA charge, you still will have to pay for that yourself. If you do not pay your IRMAA charge and are disenrolled from your Part D plan that’s paid for by your employer, you may be unable to rejoin your employer coverage, so this is definitely not a bill that you want to ignore or skip if it comes.
As I mentioned at the beginning, most people don’t have to worry about this, but if your income (and it’s always looking back two years to your tax returns) falls into the chart shown, then be aware that you will have this extra charge payable to Medicare for Part D prescription drug coverage.
Questions?
For IMRAA questions, you should contact Social Security. If you have questions about your current Medicare prescription drug coverage, you should first contact your plan. You can enroll in a Medicare Part D prescription drug plan when you first join Medicare, and then every year between October 15th and December 7th, and possibly at other times if your situation changes and you become eligible for a Special Enrollment Period.
If you would like assistance finding a Medicare Part D prescription drug plan that covers your medications through your preferred pharmacies at the best overall cost available in your area, please see our Instant Quotes page, call 877-312-1414, or learn more about finding the best Medicare coverage for you by watching our free video.
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