Most Medicare beneficiaries pay the standard Part B premium. Beneficiaries who have a Part D plan typically pay a monthly premium for their drug coverage.
But beneficiaries with higher reported incomes may pay an additional fee on top of their Part B and/or Part D premium. This is known as the Income-Related Monthly Adjusted Amount, or IRMAA.
The income that makes a beneficiary subject to the IRMAA is based on the modified adjusted gross income reported on their taxes from two years prior.
For example, beneficiaries who pay the IRMAA added to their Medicare premiums in 2020 are doing so based on the income they reported on their 2018 tax returns.
The chart below shows how IRMAA amounts for Medicare Part B and Part D premiums in 2020.
Medicare Part B & Part D IRMAA 2018 Individual tax return 2018 Joint tax return 2018 Married and separate tax return 2020 Part B premium 2020