Projections for Medicare’s 2025 income-related monthly adjustment amount (IRMAA) are out. Now is the time to check your 2023 tax return to see if you might be subject to the surcharge next year. This surcharge is paid by Medicare beneficiaries for Part B and Part D Medicare on top of the standard premiums if their taxable income exceeds certain thresholds.
The IRMAA is calculated on a sliding scale with five income brackets, topping out at $500,000 and $750,000 for individual and joint filing, respectively. These figures change annually with inflation. IRMAA calculations have a two-year lag time. Whether you pay an IRMAA in a given year depends on your tax returns from two years ago.
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IRMAA is assessed based on your modified adjusted gross income (MAGI)
Projected IRMAA income brackets and surcharges for 2025
| Single | Married filing jointly | Part B Income-Related Monthly Adjustment Amount | Part D Income-Related Monthly Adjustment Amount |
|---|---|---|---|
| Less than or equal to $105,000 | Less than or equal to $210,000 | $0.00 | $0.00 |
| Greater than $105,000 and less than or equal to $131,000 | Greater than $210,000 and less than or equal to $262,000 | $74.00 | $13.70 |
| Greater than $131,000 to and less than or equal to $163,000 | Greater than $262,000 and less than or equal to $326,000 | $184.00 | $35.30 |
| Greater than $163,000 to and less than or equal to $196,000 | Greater than $326,000 and less than or equal to $392,000 | $295.80 | $57.00 |
| Greater than $196,000 to and less than or equal to $500,000 | Greater than $392,000 and less than or equal to $750,000 | $406.90 | $78.60 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $443.90 | $85.80 |
| Single | Married filing jointly | Part B Income-Related Monthly Adjustment Amount | Part D Income-Related Monthly Adjustment Amount |
|---|---|---|---|
| Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 | $0.00 |
| Greater than $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to $258,000 | $69.90 | $12.90 |
| Greater than $129,000 and less than or equal to $161,000 | Greater than $258,000 and less than or equal to $322,000 | $174.70 | $33.30 |
| Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $279.50 | $53.80 |
| Greater than $193,000 and less than $500,000 | Greater than $386,000 and less than $750,000 | $384.30 | $74.20 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $419.30 | $81.00 |
Bottom line
Disclaimer
The 2025 projections I used were produced by Healthcare Retirement Planner and IRMAA Certified Planner. Both companies provide education, training and certification in IRMAA planning. Under the Medicare Modernization Act, the IRMAA Brackets are adjusted by "the percentage (if any) by which the average of the Consumer Price Index for all urban consumers for the 12-month period ending with August of the preceding calendar year exceeds such average for the 12-month period.” If the CPI-U at the end of August of the current year is greater than the previous August then the IRMAA Brackets will increase. Methodology: Each year, the federal government releases an annual Trustees report detailing the financial health of the Medicare program. The report also includes cost projections and benchmarks that Medicare must meet to continue functioning. In both 2024 and 2025 the costs within Medicare, including surcharges, must increase by close to 6.00%. As for the 2025 IRMAA Brackets, historically, the rate of inflation runs at roughly 2.55% annually. Healthcare Retirement Planner estimated the 2025 IRMAA Brackets by using inflation data and what the government said about surcharges in the Trustee's report.
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