The Part B IRMAA costs are an additional charge added to Part B premiums for people with high incomes.
Medicare Part B Coverage
Medicare Part B covers medically necessary and preventative care services. In addition to coverage for your annual flu shots, wellness visits, and emergency room visits, Part B also covers clinical research, ambulance services, durable medical equipment, mental health care, and limited outpatient prescription drugs.
Part B Costs
First, you pay the Medicare Part B deductible. In 2022, this is $233. That is the amount you pay toward covered services, tests, and items before Medicare starts paying for your health care expenses. Once you have paid $233, Medicare will start chipping in.
You then pay a Part B copayment, which amounts to 20% of the Medicare-approved amount for covered services. This payment is the agreed-upon cost that is standardized for all providers that accept Medicare as assignment (full payment for a covered service).
Not all providers accept assignment. Sometimes health care providers that have not agreed to accept assignment will charge you up to 15% more for covered services. You are responsible for paying the difference. These are called Part B excess charges.
Every Medicare beneficiary pays a regular monthly premium for Medicare Part B, even if they receive premium-free Part A. The Part B premium is a standardized amount, with the base premium for 2022 set at $170.10 per month.
Medicare beneficiaries who fail to sign up for Part B without qualifying for a special enrollment period may have to pay the Part B late enrollment penalty. The Part B late enrollment penalty adds 10% of the standard premium to your monthly premium costs for every 12 months you went without signing up for Medicare Part B after you became eligible.
What is the Part B IRMAA?
The Medicare Part B premiums are not based on how long you paid taxes to Medicare. Instead, the amount you pay depends on how much income you reported on your tax return. Suppose you made more than $91,000 as an individual or married person filing separately or more than $182,000 as a married couple filing jointly. In that case, you owe Medicare a Part B Income Related Monthly Adjustment Amount (IRMAA). The IRMAA is a charge added to the standard premium.
Part B IRMAA Costs
The higher your income, the higher your IRMAA. In 2022, the Part B IRMAA is as follows based on what you earned in 2020:
- Individuals who made between $91,000 and $114,000 or married couples filing jointly who made between $182,000 and $228,000 pay a Part B IRMAA of $68, for a total of $238.10 in premiums.
- Individuals who made between $114,000 and $142,000 or married couples filing jointly who made between $228,000 and $284,000 pay a Part B IRMAA of $170.10, for a total of $340.20 in premiums.
- Individuals who made between $142,000 and $170,000 or married couples filing jointly who made between $284,000 and $340,000 pay a Part B IRMAA of $272.20, for a total of $442.30 in premiums.
- Individuals who made between $170,000 and $500,000 or married couples filing jointly who made between $340,000 and $750,000 or married individuals filing separately who made between $91,000 and $409,000 pay a Part B IRMAA of $374.20, for a total of $544.30 in premiums.
- Individuals who made more than $500,000 or married couples filing jointly who made more than $750,000 or married individuals filing separately who made more than $409,000 pay a Part B IRMAA of $408.20, for a total of $578.30 in premiums.
Want to learn more about your costs with Medicare? Contact the Medicare experts at Magellan Healthcare.
