The Part D IRMAA costs are a charge that you pay in addition to your plan premium when your income is higher than a certain amount.
Medicare Part D
Medicare Part D prescription drug plans cover at least two drugs in each of the most commonly prescribed classes of drugs, which include anticancer, anticonvulsant, antidepressant, antipsychotic, antiretroviral, and immunosuppressant drugs.
Your Medicare Part D plan will let you know which prescription drugs are covered by listing them out in the plan’s formulary. Before selecting a prescription drug plan, make sure the prescriptions you currently take will be covered.
Medicare Part D Costs
At the beginning of the year, you will be paying the full cost for your prescriptions. Once you meet the plan deductible, your plan begins to cover you.
During the initial coverage period, you pay the copayment amount when you fill a prescription at the pharmacy. The charge will depend on which tier your drug falls into. Part D plans sort drugs into tiers to assign pricing based on whether they are generic, brand-name, or specialty and preferred or not preferred.
Once you have spent a set amount on covered drugs, you enter the coverage gap. During the Part D coverage gap, you pay 25% of the cost for brand-name and generic prescription drugs, along with 25% of the dispensing fee. Luckily, the manufacturers apply a discount, which counts toward your spending to get out of the coverage gap.
When you have met the spending to get out of the coverage gap, you reach catastrophic coverage and will pay only small copayments for your covered prescriptions for the rest of the year.
What is the Part D IRMAA?
The Medicare Part D IRMAA adds a charge to your monthly Part D premiums, based on how much income you made in the last tax year. You pay this charge directly to Medicare, while you still pay the plan premium directly to your Part D plan insurance provider.
Part D IRMAA Costs
Your Part D IRMAA is calculated based on the income you reported on your previous taxes. The following incomes and amounts use 2020 taxes:
- 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 D IRMAA of $12.40.
- 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 D IRMAA of $32.10.
- 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 D IRMAA of $51.70.
- 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 D IRMAA of $71.30.
- 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 D IRMAA of $77.90.
To learn more about what you can expect to pay for prescription drug coverage, speak with a licensed agent at Magellan Healthcare. Our team will connect you with the coverage that works just right for you!
