Medicare Part B premiums are standard for everyone in the United States. But, if you make above-average pay, your premium will be adjusted according to your Income-Related Monthly Adjusted Amount (IRMAA).
What is IRMAA?
Your Income-Related Monthly Adjusted Amount (IRMAA) is an adjusted Part B monthly payment, called a premium, according to your income. So, if you and/or your spouse earn more than the average household, to keep Social Security active and fair, your premiums are adjusted accordingly.
The income that makes a beneficiary subject to the IRMAA is based on their modified adjusted gross income they reported on their taxes from two years prior. So, for 2022, whether or not you’re enrolled in the IRMAA depends on your 2020 tax return.
2022 IRMAA Categories
There are six different income categories for the IRMAA. The first is the standard, national average Part B premium, which is $170.10 in 2022. The income limit for this category was raised for this year. This means that higher incomes fit within the standard—so, if you didn’t qualify for the standard premium last year, you may this year. You’d qualify for the standard premium if your 2020 individual tax return was $91,000 or less or $182,000 or less for a joint return.
- The next category is for those with an individual 2020 tax return of more than $91,000 and up to $114,000. For joint filings, the limit is between $182,000 and up to $228,000. In this category, your IRMAA premium for Part B will be $238.10 in 2022.
- If you file individually more than $114,000 or up to $142,000, or jointly more than $228,000 up to $284,000, your IRMAA will be $340.20.
- If you file individually more than $142,000 up to $170,000, or jointly more than $284,000 up to $340,000, your IRMAA will be $442.30.
- If you file individually more than $170,000 up to $500,000, or jointly more than $340,000 up to $750,000, your IRMAA will be $544.30.
- Finally, if you file individually more than $500,000, or jointly more than $750,000, your IRMAA will be $578.30.
Your Overall Medicare Costs
With all of this in mind, what are your monthly costs for Medicare in 2022? First, your IRMAA Part B premium. Chances are, like almost all Medicare beneficiaries, you don’t actually have to pay a premium for Part A, so you don’t have to worry about that. Medicare Advantage and Medigap premiums are based on other factors besides income. But, if you have Part D, your premium will be raised according to these same income categories. Overall, however, Medicare is still a very affordable option.
Learn More About Medicare Costs—Call Peritia Advisors
Our goal at Peritia Advisors is to get you your coverage without all of the confusion. Call us today at 319-200-5050.