What is IRMAA?
IRMAA (Income-Related Monthly Adjustment Amount) is an additional charge added to your Medicare premiums based on your income.
If your income exceeds certain thresholds, you will pay more each month for Medicare Part B and your Medicare Part D (Prescription Drug Coverage)
How IRMAA is applied to your Medicare Premium(s)
IRMAA is a tiered system used by Social Security to determine your Medicare premiums.
Your costs are based on your Modified Adjusted Gross Income (MAGI) from your tax return filed two years prior.
Based on that income, you are placed into a specific bracket, which determines how much you pay each month.
For example: If you enroll in Medicare in 2026, your premium-adjustment will be based on your 2024 Income.
Can IRMAA surcharges be reduced?
Sometimes — in certain specific situations, IRMAA can be adjusted.
If your income has decreased significantly since the tax year being used, you may be eligible to request a reduction by submitting:
The most common qualifying life events for consideration include:
- Retirement
- Loss of income-producing property
- Divorce and/or death of a spouse
For many individuals, retirement results in a lower income, which may move them into a lower IRMAA bracket and reduce their monthly premiums.
IRMAA can have a meaningful impact on your total Medicare costs. Understanding how it’s calculated—and when it can be adjusted—can help you avoid overpaying and plan more effectively.