Is IRMAA Progressive?

[TrvlBug]

DH and I are new to Medicare and I'm trying to determine what we should do tax wise next year to get our future Medicare premiums down. DH pays approx. $304/mo now so it appears that the IRMAA is progressive if I look at the charts. I'm unable to determine if it's progressive or if you fall off the cliff.

 

[braumeister]

IRMAA la not-so-douce has thresholds, and for each MAGI threshold you cross, you pay more.

For example, if your MAGI goes over the first threshold ($170K for MFJ), you pay 140% of the basic Medicare cost. Over the second threshold ($214K for MFJ), you pay 200% of the basic cost.

The good news is that it's adjusted every year, so if your MAGI can be lowered, you can get back to lower cost again.

 

[jonat]

But there's a two-year "lookback", so you need two years of lower MAGI in order to lower (or eliminate) IRMAA.

 

[kaneohe]

But there's a two-year "lookback", so you need two years of lower MAGI in order to lower (or eliminate) IRMAA.

That's not my impression.........got a link? My thought it looks back 2 yrs because you haven't filed the next yrs tax yet.

 

[FIRE'd@51]

That's not my impression.........got a link? My thought it looks back 2 yrs because you haven't filed the next yrs tax yet.

You are correct. For example, the 2015 AGI affects the 2017 Medicare Parts B & D premiums. If your 2016 AGI drops below the threshold, your 2018 Medicare premiums will drop back as well.

 

[GrayHare]

If your MAGI recently dipped, or you expect it to, due to one of a short list of significant events, such as voluntary or involuntary job loss, you can file with SSA to have your IRMAA correspondingly adjusted downward sooner than it would otherwise.

 

[TrvlBug]

Thanks all. My confusion with this was that the $302/mo included Part D + its IRMAA. He is paying exactly 200% of base for Part B.

 

[marko]

If your MAGI recently dipped, or you expect it to, due to one of a short list of significant events, such as voluntary or involuntary job loss, you can file with SSA to have your IRMAA correspondingly adjusted downward sooner than it would otherwise.

I did that this year. Went to the SS office with my latest tax return (just one year), waited my turn, took about 3 minutes at the window. A few weeks later got a letter in the mail and I was done.