IRMAA stands for ‘Income Related Monthly Adjustment Amount.’ It is an additional charge that some Medicar beneficiaries must pay each month for the Medicare Part B and Part D premiums.
The IRMAA is based on your income as reported to the IRS on your tax return from two years prior. If your income is above a certain level, you may have to pay an additional premium each month on top of the standard Part-B & Part-D premiums.
IRMAA is designed to help Medicare cover the cost of providing benefits. It is important to realize that IRMAA is not a penalty or a tax. It is an additional cost of Medicare coverage for those that can afford to pay more.
