Is Medicare IRMAA a big deal?

[harllee]

My husband and I are on Medicare but we have never been subject to IRMMA. Looks like we will be subject to IRMMA in 2023, in the $194,000 to to $246,000 bracket. I looked at how much this will cost us and using the 2023 tables it looks like for each of us it will be under $1000 annually for combined medicare and part D penalty. Am I right on this? Does not look like IRMMA will be a big deal for us.

 

[audreyh1]

Well some folks find the almost $1000 extra per person per year to be a big deal. Others not.

That first tier is not so bad. The jumps up to higher tiers is worse, often an additional $1400 per person per year each tier. It adds up quickly!

 

[harllee]

Looks like for us it will be about $1000 each, a total of $2000 annually, not really a big deal.

 

[Car-Guy]

To me the extra $'s were never a big deal, but the idea of having to pay it was.

 

[braumeister]

And the additional tiers mount up quickly.
First jump is 1.4 times your Part B premium per person.
Second is 2 times
Third is 2.6 times
Fourth is 3.2 times
Final is 3.4 times.

 

[athena53]

Mine will be a little over $2,000 in 2023. Yeah, it stinks but generally it hits the people who can afford to absorb it. My understanding is that Medicare beneficiaries are paying only part of the actual costs of their coverage and the taxpayers chip in the rest; each IRMAA tier claws back another 25% of the subsidy.

I get a bit of a break on these expenses since I can itemize deductions.

 

[steelyman]

Looks like for us it will be about $1000 each, a total of $2000 annually, not really a big deal.

According to my Jan 2023 statement, IRMAA B = $65.90, IRMAA D = 12.20. Total monthly IRMAA = $78.10, annual $937.20. That seems about in line with you.

 

[audreyh1]

And the additional tiers mount up quickly.
First jump is 1.4 times your Part B premium per person.
Second is 2 times
Third is 2.6 times
Fourth is 3.2 times
Final is 3.4 times.

Yep, plus Part D IRMAA.

 

[copyright1997reloaded]

Looks like for us it will be about $1000 each, a total of $2000 annually, not really a big deal.

Well, for an individual making just over 170K the 2022 extra premium was 544.30/month = $6,531.56 extra per year. All for one individual's coverage, and this does not include the part D surcharges.

In my case, as of Nov 22 I (and my employers) had paid over 124K into Medicare, which is quite a bit of money paid upfront.

Having to now pay an extra 6K+ per year when I retire AND pony up for my dependent child's ACA plan (in NYS, so about $800/month) where we pay about $600/month today for my employers FAMILY plan DOES seem like a big unfair deal. But it is what it is.

 

[Irishgirlyc58]

I’m a single person and won’t be on Medicare until September this year. My IRMAA estimate is approximately $2,000/year. That’s a lot of money. Affordable seems rather subjective. Will I go without eating, no but I have plenty of other expenses that the money could go towards.
Does it irritate me? Yes it does. That I will pay twice as much for a product as other people is a real thorn in my side.

 

[braumeister]

That I will pay twice as much for a product as other people is a real thorn in my side.

Understood. But in fairness, less than 10% of Medicare beneficiaries are impacted by IRMAA, so you're already in an elite group.

 

[Car-Guy]

Understood. But in fairness, less than 10% of Medicare beneficiaries are impacted by IRMAA, so you're already in an elite group.

I'm going to disagree with that (in bold)... There's nothing fair about it, IMO. Of course you are entitled to your opinion.

And +1 for the comments in the post below!

 

[athena53]

Understood. But in fairness, less than 10% of Medicare beneficiaries are impacted by IRMAA, so you're already in an elite group.

Yes, but it's the same group that's probably already paid multiples of what the average worker paid into Medicare during their wage-earning years and, beginning 1994, they removed the cap on wages subject to Medicare contributions. Now with IRMAA you're paying more for coverage, too- the same coverage everyone on Medicare gets.

My medical practitioners' offices do not have a Priority Line for those of us subject to IRMAA surcharges.

 

[ivinsfan]

Well, for an individual making just over 170K the 2022 extra premium was 544.30/month = $6,531.56 extra per year. All for one individual's coverage, and this does not include the part D surcharges.

In my case, as of Nov 22 I (and my employers) had paid over 124K into Medicare, which is quite a bit of money paid upfront.

Having to now pay an extra 6K+ per year when I retire AND pony up for my dependent child's ACA plan (in NYS, so about $800/month) where we pay about $600/month today for my employers FAMILY plan DOES seem like a big unfair deal. But it is what it is.

That 170K single filer number is a big deal...not that it makes you feel any better, perhaps you will have some income wiggle room when retired...


Technically the extra is the amount over the part b regular premium for 22 that amount was 170.10...but the bad news is you are going need a supplement for B which will also cost you money. Welcome to the Medicare world where things aren't always pleasant.

 

[ivinsfan]

I’m a single person and won’t be on Medicare until September this year. My IRMAA estimate is approximately $2,000/year. That’s a lot of money. Affordable seems rather subjective. Will I go without eating, no but I have plenty of other expenses that the money could go towards.
Does it irritate me? Yes it does. That I will pay twice as much for a product as other people is a real thorn in my side.

Pretty sure it's here to stay. This system got loosely incorporated in ACA. Until Covd they had the cliff and now it turned to a%. But if they implemented a similar percent number for Medicare like 8.5 it would probably be more expensive. I'm talking surcharge number here as a %. I don't think anything will change.

 

[steelyman]

This is where the “trigger” income levels Gumby posted as a sticky thread can help. I believe IRMAA is included.

 

[jazz4cash]

The only piece I strongly object to is the cliff nature of the surcharge. A tier1 surcharge would cost us $1631/yr if we go $1 over the threshold. WHAT!!? I never heard of this surcharge and here I am doing Roth conversions. The lookback nature to determine the surcharge seems sneaky.

 

[audreyh1]

I think it’s simply because calculating is way easier with the stair step method, but I agree ouch!

I’m having to carefully keep some buffer to avoid that extra $1 over.

 

[Spock]

If you're irritated at IRMAA or feel it unfair, wait'll y'all see means testing for SS. It'll likely start at the same income altitudes.

 

[ShokWaveRider]

My husband and I are on Medicare but we have never been subject to IRMMA. Looks like we will be subject to IRMMA in 2023, in the $194,000 to to $246,000 bracket. I looked at how much this will cost us and using the 2023 tables it looks like for each of us it will be under $1000 annually for combined medicare and part D penalty. Am I right on this? Does not look like IRMMA will be a big deal for us.

Does that $1,000 include the Part G Supplement?

 

[EastWest Gal]

Well, for an individual making just over 170K the 2022 extra premium was 544.30/month = $6,531.56 extra per year. All for one individual's coverage, and this does not include the part D surcharges.

In my case, as of Nov 22 I (and my employers) had paid over 124K into Medicare, which is quite a bit of money paid upfront.

The $124K was paid over roughly 40 years. Most of that time the rate was 1.45% for employees and 1.45% employers. So your total income was roughly $124,000÷.029, or $4.2 million over your career. An extra $5-6K per year can certainly be budgeted by someone who made that much. Medicare coverage is not based on an individual account basis, and neither is health insurance. All the employees in a company may be on roughly the same health insurance plan, whether they be janitors or administrative assistants, or executive. Likewise all Medicare recipients get Medicare.

$124K is not that much to contribute toward health care for the rest of your life. Right now, the cost for one pregnancy, including delivery room and postpartum, is about $17K. Stage III or IV breast cancer treatment is roughly $80K-$150K. Do we want people to go bankrupt paying these costs out of pocket?

Having to now pay an extra 6K+ per year when I retire AND pony up for my dependent child's ACA plan (in NYS, so about $800/month) where we pay about $600/month today for my employers FAMILY plan DOES seem like a big unfair deal. But it is what it is.

I agree with the OP. Compared to my health care premiums when I was young and healthy and even while on the ACA, IRMAA will not be a big deal. If in retirement we have more that $194K in income, we'll pay the premium. Some folks here are complaining about having to pay anything extra because they were blessed with being a high income earner, in a forum with a thread called "Blow That Dough." If you think it is unfair, then please share what you think is fair.

If you are required to pay extra because of IRMAA, count your blessings that you had that level of income two years ago to be required to pay that. The current IRMA brackets are such that even if I had not retired, we would not be faced with paying an additional premium. If you are making that much in retirement...congratulations.

 

[Marita40]

No way was I going to pay IRMAA. I sent in my letter and followed with tax statements to my local office and IRMAA disappeared. Not sure why anyone would not do this. It was not difficult.

 

[audreyh1]

Does that $1,000 include the Part G Supplement?

No, it does not.

Also no IRMAA on Medigap. Only on Part B and D.

 

[audreyh1]

No way was I going to pay IRMAA. I sent in my letter and followed with tax statements to my local office and IRMAA disappeared. Not sure why anyone would not do this. It was not difficult.

Because our income was high?

 

[Sunset]

No way was I going to pay IRMAA. I sent in my letter and followed with tax statements to my local office and IRMAA disappeared. Not sure why anyone would not do this. It was not difficult.

I don't recall what the issue was, can you expand ?