Expensive Medicare Costs Arising from Overlooked 2-Year IRMAA Rule.

Increased earnings may lead to expensive IRMAA surcharges on your Medicare payments. Seeking counsel from financial strategists for guidance.

, and Administrator

2025 September 2 . 5:38 AM

2 min read

Soaring Medicare Costs for Missing 2-Year IRMAA Regulation

Expensive Medicare Costs Arising from Overlooked 2-Year IRMAA Rule.

If you're a higher earner, you might face an Income-Related Monthly Adjustment Amount (IRMAA) surcharge on your Medicare premiums. But there are strategies to help manage and potentially reduce this surcharge.

Appealing Based on Life-Changing Events

If you've experienced a significant life event such as retirement, job loss, death of a spouse, or loss of income-producing property, you can appeal the IRMAA surcharge. To do this, file Form SSA-44 with the Social Security Administration (SSA) and provide supporting documentation like a death certificate or a copy of the tax return showing the year your income declined.

Annual Recalculation

Good news for those whose income has dropped below the applicable IRMAA thresholds over the past two years: your premiums will be automatically adjusted for the following year without any action required.

Additional Appeal Levels

If your initial appeal is denied, you can proceed to the Office of Medicare Hearings and Appeals. If this level is unsuccessful, you can appeal again at the Medicare Appeals Council. If all else fails, the final level of appeal is the Federal District Court, which may require legal representation.

Strategic Planning

One strategy to consider is converting traditional IRAs to Roth IRAs. Distributions from Roth accounts do not count toward your modified adjusted gross income (MAGI), potentially reducing your IRMAA.

Remember, IRMAA thresholds change annually, making it challenging to plan for. However, by being aware of these strategies, you can take proactive steps to manage your Medicare costs.

IRMAA can increase Medicare costs for higher earners.
If you've experienced a life-changing event, you may be able to reduce your current premiums sooner.
If your circumstances have changed over the past two years, it may be possible to appeal an IRMAA.
Delaying your Social Security claim could help avoid IRMAAs.
The standard monthly premium for Medicare Part B in 2025 is $185. There is no standard monthly premium for Part D; costs are plan-specific.

[1] Medicare.gov. (2023). Your Medicare Premiums: Income Related Monthly Adjustment Amount (IRMAA). [online] Available at: https://www.medicare.gov/your-medicare-costs/part-b-costs/part-b-costs-irmaa.html

[2] SSA.gov. (2023). IRMAA. [online] Available at: https://www.ssa.gov/benefits/retirement/irmaa.html

[3] Forbes.com. (2023). How To Avoid The IRMAA Surcharge On Medicare Premiums. [online] Available at: https://www.forbes.com/advisor/retirement/irmaa-surcharge/

[4] Investopedia.com. (2023). Income-Related Monthly Adjustment Amount (IRMAA). [online] Available at: https://www.investopedia.com/terms/i/irmaa.asp

[5] AARP.org. (2023). How to Appeal Your Medicare IRMAA. [online] Available at: https://www.aarp.org/retirement/social-security/info-2021/how-to-appeal-your-medicare-irmaa.html