Clarification of Medicare IRMAA and MAGI – Ask Rusty

Dear Confused:  The article you refer to was misleading for stating that the Modified Adjusted Gross Income (MAGI) used to determine your Medicare premiums includes your normal Adjusted Gross Income (AGI) from your income tax return, plus any non-taxable interest you may have had, plus 50% of the SS benefits you received during the tax year.  What the article should have said was that the MAGI which determines your Income-Related Monthly Adjustment Amount (IRMAA) to your Medicare premiums consists of your normal AGI from your tax return (which includes the taxable portion of your Social Security benefits), plus any non-taxable interest you may have had.  

For additional clarity, the Income-Related Monthly Adjustment Amount (IRMAA) is a supplemental amount added to the standard Medicare premium for those with higher incomes. The thresholds at which the IRMAA supplements apply depend on your IRS filing status, and your MAGI determines the amount of supplement which will be added to the standard Medicare premium. Single filers with MAGI over $103,000, or married filers with MAGI over $206,000 will see an IRMAA supplement added to their Medicare premium. Those whose MAGI is under the first IRMAA threshold pay the standard Medicare premium, but those whose MAGI exceeds the first IRMAA threshold above will pay more.  How much more depends on how much their MAGI exceeds the first IRMAA threshold by. The IRMAA supplement (the additional premium amount) could be anywhere from $69.90 to $419.30 per month for Medicare Part B (coverage for outpatient services), or an additional $12.90 to $81.00 per month to the Medicare Part D (prescription drug plan) premium  – again dependent on how much over the initial MAGI threshold the person is for their IRS filing status.  You can see the MAGI levels and corresponding IRMAA supplements at this Medicare website:  www.cms.gov/newsroom/fact-sheets/2024-medicare-parts-b-premiums-and-deductibles  

IRMAA and MAGI can be confusing. If you have questions about your Medicare premiums, help is available at [email protected], or at 1.888.750.2622. 

Thank you for submitting your question to our Social Security Advisor department. Be sure to share our link with your family and friends. 

This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at [email protected].