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Medicare IRMAA in 2022

Alli Thomas

Medicare Part B will see a 15% cost increase in 2022. This is one of the largest in the history of the program. Not only will premiums rise significantly, but the income-related surcharge known as IRMAA will increase in 2022 as well. 

Why Will Part B Premiums Increase? 

According to the Centers for Medicare and Medicaid Services (CMS), COVID-related price hikes and a higher rate of medical care usage have pushed up Part B premiums.  

Another reason is related to potential administration of a new Alzheimer’s medication called Aduhelm. It has a price tag of $56,000 per year and if it were covered by Medicare, could significantly increase program spending.  

What about IRMAA? 

High-income beneficiaries, a status determined by 2020 federal tax filings, will also have to pay higher surcharges for Part B.   

Modified adjusted gross income in 2020 of $91,000 or higher (for single filers) or $182,000 or higher (for married filers) will result in a Part B surcharge between $68 to $408 per month in addition to the regular Part B premium (see below chart). 

2020 Single Filer  2020 Married Filing Jointly 2020 Married Filing Single 2022 Part B Premium + IRMAA
$91,000 and less $182,000 and less  $91,000 and less  $170.10 
$91,000 – $114,000  $182,000 – $228,000  N/A  $238.10 
$114,001 – $142,000  $228,001 – $284,000  N/A  $340.20 
$142,001 – $170,000  $284,001 – $340,000  N/A  $442.30 
$170,001 – $500,000  $340,001 – $750,000  $91,001 – $409,000  $544.30 
$500,001 +  $750,001 +  $409,001 +  $578.30 

 

Part D (prescription drug coverage) also penalizes high-income beneficiaries. The IRMAA surcharge on Part D can range from about $12 to more than $75 per month in addition to the standard Part D premium. 

Strategies to Avoid IRMA

  • If you’re planning on doing a Roth IRA conversion, plan it carefully, as it will increase your taxable income. 
  • If you invest in municipal bonds (which can be a great source of tax-exempt income), be aware that that interest can affect your Medicare premiums 
  • If you are a higher-income retiree and have had a life-changing event, make sure to notify Social Security by filing an IRMAA appeal. 
  • If you plan to sell any appreciated assets (including real estate), know what your options are to minimize your taxable income. 
  • Consider opening a Medicare Savings Account (MSA) if you meet eligibility requirements.
  • Understand how taking annual required minimum distributions (RMDs) from your retirement accounts might affect your taxable income.
  • Consider making a qualified charitable donation (QCD) to reduce your tax liability.  

Read more: Three Ways to Reduce Your Income-Related Monthly Adjustment Amount (IRMAA) for Medicare Part B 

Looking for more ideas to avoid paying IRMAA? Click here to schedule a free, no-obligation consultation and review of your financial plan using our Oakmont Blueprint Process. 

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