Part D IRMAA?

[jpeter1093]

I just got my monthly Medicare bill (I pay the 170.10 for Part B). I have Part D through another insurer (not the government) and I noticed the boxes for any IRMMA I have to pay included a zero entry for Part D.

Isn't Part D NOT from Medicare? In fact, all the parts except A&B are via private insurers, right? So how can there be an IRMMA for Part D? They don't subsidize Part D, AFAIK...

 

[Car-Guy]

I paid tier 4+ IRMAA for several years which only affected my part B payments. Came right out of my SS checks. I had a drug supplement too but at no additional IRMAA charge but that was provided by my previous employer..

 

[Dash man]

Yes, there are IRMAA charges for Part D. I am currently paying at the top tier $77.10/month because of large Roth conversions in 2020.

 

[Another Reader]

Yes, there are IRMAA charges for Part D. I am currently paying at the top tier $77.10/month because of large Roth conversions in 2020.

My experience as well.

 

[sheehs1]

I am paying a top tier Medicare Part D IRMA too.

IRMA charges went up 60% for 2022 from prior year...at least for me. Same bracket.
That 5.9% SSN COLA increase ended up being about 2%. Took more of the increase than they gave to some of us.

 

[SevenUp]

So how can there be an IRMMA for Part D? They don't subsidize Part D, AFAIK...

See SSA - POMS: HI 01101.020 - IRMAA Sliding Scale Tables - 12/06/2021 for the Part B and Part D details.

 

[Sunset]

Parts A and B are medicare, but the parts D , C, E, F, G and the other medicare plans , all work under agreements with the government.
While they may not be run by the government, they have to agree to certain rules or they are not allowed to make money off people.

 

[Winemaker]

We're also paying IRMAA surcharge on Part D, even though we are not enrolled in Part D.

 

[Marita40]

I know that there is IRMAA for Part D, but if you are paying for that shouldn't you be paying IRMAA on Part B too? I thought the two went hand in hand if your MAGI was over a certain amount. Mine was. I appealed it and the IRMAA went away for both B and D, and I got refunded for the couple months I paid it.

 

[MBSC]

So how can there be an IRMMA for Part D? They don't subsidize Part D, AFAIK...

Part D premiums are subsidized by the government.

Financing for Part D comes from general revenues (73%), beneficiary premiums (15%), and state contributions (11%). The monthly premium paid by enrollees is set to cover 25.5% of the cost of standard drug coverage. Medicare subsidizes the remaining 74.5%, based on bids submitted by plans for their expected benefit payments. Higher-income Part D enrollees pay a larger share of standard Part D costs, ranging from 35% to 85%, depending on income.

Source: https://www.kff.org/medicare/fact-s...he-medicare-part-d-prescription-drug-benefit/

 

[jpeter1093]

Part D premiums are subsidized by the government.

Thanks for the info; so it's similar to ACA subsidies; except (unlike with ACA) - we don't see the actual premium/subsidy amounts, just our premium amount.

 

[braumeister]

Thanks for the info; so it's similar to ACA subsidies; except (unlike with ACA) - we don't see the actual premium/subsidy amounts, just our premium amount.

Just like Part B.

 

[jpeter1093]

Just like Part B.

Well, it's different because we don't choose Part B "plans" from insurance companies like we do Part D

 

[SevenUp]

Thanks for the info; so it's similar to ACA subsidies; except (unlike with ACA) - we don't see the actual premium/subsidy amounts, just our premium amount.

The part B subsidy amounts can be calculated from Code of Federal Regulations § 418.1120: divide your cost by the "Beneficiary percentage" and then multiply by the "Federal premium subsidy (percent)".

Part D subsidy amounts can probably be calculated from 42 CFR § 423.286 - Rules regarding premiums, where one finds text such as

The income-related monthly adjustment is equal to the product of the standard base beneficiary premium, as determined under paragraph (c) of this section, and the ratio of the applicable premium percentage specified in 20 CFR 418.2120, reduced by 25.5 percent; divided by 25.5 percent (that is, premium percentage−25.5 percent)/25.5 percent).

...but that exercise, as textbooks are wont to say, is left to the student.

2022 2023 2024 Medicare Part B IRMAA Premium MAGI Brackets has a good overview of the whole thing.