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High-earning Medicare beneficiaries may see a surcharge on their Part B and Part D premiums — but they should make sure they still need to pay it.
Retirement Tip of the Week: If you’re retiring soon or have retired recently and you are currently paying this Medicare surcharge, consider appealing it as soon as you can.
The surcharge, known as IRMAA (income-related monthly adjustment amount), applies to Medicare Part B and Part D premiums. In 2023, single taxpayers who earn between $97,000 and $123,000 and taxpayers who file jointly and earn between $194,000 and $246,000 will pay an extra monthly premium of $65.90. For single and joint filers earning between $123,000 and $153,000 or $246,000 and $306,000, respectively, the surcharge is $164.80. The rates increase for higher income brackets.
The IRMAA is based on tax returns from two years before, which means the surcharge in 2023 will depend on a person’s income in 2021. The amount of the surcharge is recalculated every year, so a beneficiary’s 2024 premium will be based on their 2022 tax return.
Beneficiaries can appeal their IRMAA for a number of reasons, including an inaccurate tax return or what’s known as a life-changing event, according to the Department of Health and Human Services. Such events include the death of a spouse, marriage or divorce, loss of income and retirement.
To file an appeal, individuals must complete what’s called a request for reconsideration form, which can be found on the Social Security Administration’s website or obtained by calling the agency at 1-800-772-1213. Retirees may also want to make an appointment with their local Social Security office.
An appeal may not only affect future premiums, but it could result in current savings as well, because Medicare beneficiaries may be eligible for a refund or credit toward future premiums if the Social Security Administration determines they have overpaid.
