The Medicare Part B premium is the monthly amount you pay for Medicare medical insurance, which covers doctor visits, outpatient services, and preventive care. The standard premium changes annually and is set each fall by the Centers for Medicare & Medicaid Services (CMS). Higher-income beneficiaries pay more through a surcharge called IRMAA.
What Is the Standard Part B Premium?
The standard Part B premium is the base monthly cost that most Medicare beneficiaries pay. It is adjusted each year based on the costs of the Medicare program. For most people, this premium is automatically deducted from their Social Security check.
If you haven’t started collecting Social Security income yet, you’ll receive a bill for your Part B premium instead.
What Is IRMAA — and Do I Have to Pay It?
IRMAA stands for Income-Related Monthly Adjustment Amount. If your modified adjusted gross income (MAGI) as reported on your tax return from two years ago exceeds a certain threshold, you will pay a higher Part B (and Part D) premium. The surcharge is tiered — the higher your income, the higher the additional amount.
Many people are surprised by IRMAA when they retire, especially if they had a high-income year due to a one-time event like selling a home or business. The good news: you can appeal an IRMAA determination if your income has since decreased.
Why Does the Premium Change Every Year?
The Part B premium is recalculated annually to reflect the projected cost of Medicare’s outpatient services for the coming year. It typically increases year over year, though it can occasionally decrease. The Social Security “hold harmless” rule protects some beneficiaries from large increases — but this protection does not apply to higher-income enrollees subject to IRMAA.
Understanding your premium is a key part of retirement health planning. If you’d like help projecting your Medicare costs or appealing an IRMAA determination, I’m here to help.
Call or text 315-727-4933, or email tcangemi@RetirementHPMS.com.
Choosing the right Medicare plan doesn’t have to be overwhelming. I will take the time to understand your needs, explain your options in plain language, and guide you through every step of the enrollment process so you can make a confident decision.
