In 2025, Medicare beneficiaries with higher incomes will face additional costs through the Income-Related Monthly Adjustment Amount (IRMAA). This surcharge applies to both Medicare Part B and Part D premiums and is determined by your Modified Adjusted Gross Income (MAGI) from your 2023 tax return.
For married couples filing separately, the IRMAA brackets for 2025 are as follows:
- If your income is $106,000 or less, your Medicare Part B premium will be $185.00 per month, plus the standard Part D premium for your chosen plan.
- For incomes above $106,000 but less than $133,000, the Part B premium rises to $259.00, and Part D will include an additional surcharge of $13.70.
- If your income falls between $133,000 and $167,000, the monthly Part B premium will be $370.00, with an extra $35.30 for Part D.
- For income between $167,000 and $200,000, you’ll pay $480.90 for Part B, plus an additional $57.00 for Part D.
- If your income is between $200,000 and $500,000, Part B will cost you $591.90, and Part D will come with an extra $78.60.
- And for those with an income exceeding $500,000, the premium for Part B increases to $628.90, plus an additional $85.80 for Part D.
These surcharges are calculated based on your income, and it’s essential to note that they apply to your 2023 earnings. With the standard Part B premium rising to $185.00 in 2025, these additional costs can add up significantly for higher-income individuals.
Key Takeaways:
- The IRMAA surcharge affects anyone with a MAGI above $106,000 for married couples filing separately.
- The more you earn, the higher your premiums for both Part B and Part D.
- Planning ahead can help you manage these costs and avoid surprises when your 2025 Medicare premiums are calculated.
Remember, if your income changes significantly or if you’re facing life events such as divorce or loss of income, you might be able to appeal the surcharge.
For more information on how to prepare for these additional costs, make sure to check with Medicare or financial advisors to understand how IRMAA impacts your Medicare planning.
