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IRMAA is the Income-Related Monthly Adjustment Amount that could be applied to your Part D premiums. It only affects those Medicare beneficiaries who have a high enough income. More specifically, if you have a modified adjusted gross income (MAGI) of more than $85,000 then you may pay additional Medicare Part D Income-Related Monthly Adjusted Amount (IRMAA) based on your income. Your premium will not be affected by this if you make less than $85,000 a year individually, or less than $170,000 if married and filing jointly.
The IRMAA amount can vary based on income, however you could see anywhere from $12.00 a month to $69.10 a month of additional premium. The income amount used is your Modified Adjusted Gross Income, or MAGI. If you are married but filed separate tax returns, you will be rated as individuals. If it is determined that you will need to pay Part D-IRMAA, Social Security will send you a letter explaining how this was determined and the amount you must pay.
By law, IRMAA for prescription drug coverage must be withheld from Social Security, Railroad Retirement Board, or Office of Personnel Management benefit checks unless the monthly payment isn’t enough to cover the full amount owed. If it isn’t enough to cover the entire amount, you will receive a bill from Medicare (CMS). By law you are unable to pay for your Part-D Premium and IRMAA together. In order to keep your Part-D coverage, you must pay any IRMAA that is due.
If you do not have an active Part-D plan, you do not pay any IRMAA. However if you didn’t pay the Part D-IRMAA that was owed before disembroiling from your prescription drug coverage, you would be responsible for the past due amount.
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