IRMAA Basics
Understanding IRMAA Impacts on Medicare Advantage Plans
Verified against SSA POMS as of September 4, 2026
The short answer
The Income-Related Monthly Adjustment Amount (IRMAA) affects beneficiaries with higher income levels, impacting their Medicare Part B and Part D premiums. Beneficiaries with Medicare Part B and Part D or a Medicare Advantage Plan with drug coverage (MA-PD) will pay IRMAA B and D surcharges if their Modified Adjusted Gross Income (MAGI)exceeds specified thresholds. Those thresholds also vary depending upon tax filing status. If a beneficiary does not have a standalone Part D plan or has a Medicare Advantage plan without a drug plan, then IRMAA D would not apply.
What is IRMAA?
The Income-Related Monthly Adjustment Amount (IRMAA) is an extra charge added to your Medicare Part B and Part D premiums if your Modified Adjusted Gross Income (MAGI) is above certain levels. The Social Security Administration uses IRS-provided tax information to determine who pays IRMAA. Beneficiaries enrolled in a Medicare Advantage Plan with drug coverage (MA-PD), among others, may be subject to IRMAA if their MAGI exceeds specified thresholds.
HI 01101.001 View source ›IRMAA Calculations and Affected Beneficiaries
IRMAA applies to beneficiaries who have a MAGI from the tax year two years prior to the current year that is above the income threshold. There are five levels of IRMAA, depending on the income reported in the MAGI. The MAGI thresholds change annually, and those adjustments are determined by CMS.
HI 01101.031 View source ›Impact on Medicare Advantage
Beneficiaries enrolled in a Medicare Advantage Plan with prescription drug coverage (MA-PD) and who have incomes above certain thresholds pay IRMAA surcharges in addition to their plan premiums. However, it's important to note that IRMAA does not alter the premium for the Medicare Advantage policy itself. To enroll in a Medicare Advantage plan, beneficiaries must first sign up for Medicare Parts A and B. IRMAA affects Part B premiums, and if the Medicare Advantage plan includes a built-in drug option, IRMAA for Part D could apply depending on the beneficiary’s Modified Adjusted Gross Income (MAGI). This means their total costs for Part B and Part D could increase due to this income-related charge.
HI 01101.001 View source ›Frequently asked
What is IRMAA, and who has to pay it?
IRMAA is an additional charge on your Medicare Part B and D premiums if your modified adjusted gross income (MAGI) exceeds certain thresholds. Tax filing status is also taken into consideration. The Medicare beneficiary is responsible for paying IRMAA. Generally, these surcharges are deducted from the beneficiary’s monthly Social Security check. If the beneficiary does not receive Social Security income, IRMAA surcharges will be billed on a quarterly basis.
Does IRMAA affect me if I have a Medicare Advantage plan?
Yes, if your income exceeds the thresholds, you will pay IRMAA surcharges on top of your Medicare Advantage plan premiums. Medicare Advantage plans, also known as Medicare Part C, encompass the benefits of Part A and Part B, and may include Part D if the plan offers prescription drug coverage. Therefore, IRMAA surcharges apply to the Part B and Part D components of your Medicare Advantage plan.
How is IRMAA calculated?
IRMAA is based on your Modified Adjusted Gross Income (MAGI) from two years ago. The Social Security Administration (SSA) uses information from the IRS to determine if a beneficiary has reached the IRMAA thresholds. The Centers for Medicare & Medicaid Services (CMS) is responsible for setting these MAGI thresholds annually. There are five IRMAA brackets for single filers and for those who are married and file jointly. However, if you are married but file separately, there are only two IRMAA brackets, which correspond to the two highest tier brackets.
Where can I find the income thresholds for IRMAA?
The income thresholds for IRMAA levels, which apply to both Medicare Advantage and Medicare Part B and D can be found on CMS.gov and SSA.gov. These brackets are adjusted annually to reflect changes in income levels.