What is the Medicare Part D IRMAA?

If a beneficiary’s “modified adjusted gross income” is greater than the specified threshold amounts ($87,000 for 2018 and 2019 tax returns for a beneficiary filing an individual income tax return or married and filing a separate return, and $174,000 for a beneficiary filing a joint tax return), then the beneficiary is responsible for a larger portion of the total cost of Part D benefit coverage. In addition to the normal Part D premium paid to a plan, such beneficiaries must pay an Income-Related Monthly Adjustment Amount (IRMAA). Unlike the normal Part D premium, beneficiaries will not pay the Part D income-related monthly adjustment amounts to Part D plans. Instead, the Part D income-related monthly adjustment amounts will be collected by the federal government.

Important points about the Part D IRMAA to keep in mind:

  • If you owe an IRMAA, Social Security will send you a letter notifying you that the extra amount you owe will be added to your Medicare Part D premium.
  • The Part D IRMAA is billed directly by the Centers for Medicare and Medicaid Services, which means any IRMAA payment should not be sent to your prescription drug plan.
  • If you do not pay your IRMAA, you may be at risk for disenrollment from your Medicare Part D plan.
  • More information about the Part D IRMAA can be found on the www.medicare.gov website.

Return to the Medicare FAQ section to view more answers to other commonly asked questions about Medicare prescription drug coverage.