2025 Medicare IRMAA Surcharge Updates, #228
On November 8th, 2024, Medicare announced that in 2025, Medicare Part B will cost $185 per month per person—an increase of about $10.30 from 2024. Keep in mind, if your income is above a certain point, you’ll have to pay an “Income-Related Monthly Adjusted Amount,” or “IRMAA” tax. Is there a way to avoid paying the IRMAA surcharge? I share some strategies in this episode of Retire with Ryan.
You will want to hear this episode if you are interested in...
[1:25] How to get a FREE copy of “10 Costly Medicare Mistakes”
[2:20] The cost of Medicare Parts A, B, and D in 2025
[4:26] When you would pay a higher Medicare premium
[8:32] What you can do to appeal the IRMAA Surcharge
[10:02] What you can do to avoid the IRMAA Surcharge
The cost of Medicare Parts A, B, and D in 2025
Medicare Part A is generally free as long as you have paid into Medicare for 10 years. Medicare Part A covers hospital stays. However, you’ll have to pay the deductible for the hospital stay, which is now $1,676 (up $44 from 2024). This covers the first 60 days of a hospital stay.
If you exceed 60 days, you’ll have to pay $419 for each additional day, up to 91 days. If you stay beyond that, you'd have to pay $838 a day, up to a lifetime maximum of another 60 days. Beyond that? You’ll have to pay 100% of out-of-pocket costs. This is the reason people consider buying supplemental plans.
When would you pay a higher Medicare premium?
If your income exceeds certain levels, you could pay more for Part B and Part D. i.e. the IRMAA tax. Medicare bases this on your gross income plus any tax-exempt interest that has been earned or accumulated on your most recently filed tax return.
If you are:
Filing single: If your income is over $106,000 in 2023 you’ll have to pay an additional $74 per month per person for Medicare Part B and $13.70 for Medicare Part D. If you go over $133,000, you’ll have to pay an additional $185 per month and 35.30 for Part D
Married filing jointly: If your income is over $212,000 in 2023, you’ll have to pay an additional $74 per month for Medicare Part B and $13.70 for Medicare Part D. If you go over $266,000, you’ll have to pay an additional $185 per month and 35.30 for Part D.
If you’re married filing separately, you’ll pay significantly more for coverage. The numbers continue to rise from there (more details in the link in our resources).
What you can do to appeal the IRMAA Surcharge moving forward
There are some things you can do to appeal the surcharge if you think you’re being overcharged. There are 8 reasons you can appeal (listed on the form SSA-44 in the resources):
Marriage
Divorce/annulment
Death of a spouse
Work stoppage
Work reduction
Lose of income-producing property due to disaster
Loss of pension income
Employer settlement payment
If you don’t meet the criteria, you’re stuck paying this additional premium. What can you do for future years? Listen to learn more.
Resources Mentioned
Subscribe to the Retire with Ryan YouTube Channel
Form SSA-44: Medicare Income-Related Monthly Adjustment Amount
Connect With Morrissey Wealth Management
www.MorrisseyWealthManagement.com/contact