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IRMAA – What It Is and What to Do About It

We wrote this article for Advisor Perspectives. Please read on...

If there’s one thing that bugs people with higher income as they head into the Medicare system, it’s the income-related monthly adjusted amount (IRMAA). People at all income levels arrive into Medicare feeling that the system is “free” or “largely subsidized.”

They quickly learn that it is neither.

We’ll tackle IRMAA in this article. We’ll provide you with information to teach you how you might be able to get rid of IRMAA.

What is it? Approximately 7-8% of all Medicare beneficiaries are affected by IRMAA surcharges. This affects millions of people, and you or your clients may be among them.

IRMAA is not the same as a Medicare late-enrollment penalty. People often confuse the IRMAA surcharge with Medicare penalties. IRMAA is a surcharge (or a tax, if you’d prefer to look at it that way). It means that you, as a Medicare beneficiary, are paying a higher fee of your Medicare Part B premium than your neighbor may be. You will be paying that higher portion if you have more income than your neighbor.

Fair or not, that is how it works.

To finish this article please read it in its entirety. 



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