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What You Need To Know About Medicare’s IRMAA Penalty

Medicare can be overwhelming.  Sorting out the coverage premiums and out-of-pocket costs can be confusing, let alone understanding the different penalties that can be assessed. In today’s blog post we’ll  take a look at the IRMAA Penalty and simplify it so that it’s easier to understand.

The Income-Related Monthly Adjustment Amount (IRMAA) penalty applies to individuals whose modified adjusted gross income is greater than the specified threshold amounts. This means you will pay a greater amount on the monthly Medicare Part D prescription drug plan premiums and Part B coverage premiums.

The threshold amounts in 2017 are as follows:

  • $85,000 for a beneficiary filing an individual income tax return or married and filing a separate return
  • $170,000 for a beneficiary filing a joint tax return

The Part D IRMAA penalty amount is paid directly to the federal government, not to your Part D plan. If your most recent tax return indicates your modified adjusted gross income is indeed greater than the threshold amounts, the Social Security Administration will mail you a letter indicating the extra amount that you will owe. Be sure to pay your IRMAA, or you will risk disenrollment from your Medicare Part D plan.

If you have any questions or would like more information, contact one of our Medicare advisors today at (614) 799-1403.

 

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