Medicare - IRMAA

Question 1

What does IRMAA stand for?

Answer 1

Income Related Monthly Adjustment Amount

Question 2

Which of the following is used to determine IRMAA for the current Medicare premium year?

A. AGI from 2 years prior to the premium year

B. MAGI from 3 years prior to the premium year

C. MAGI from 2 years prior to the premium year

D. MAGI from one year prior to the premium year

Answer 2

Depending on circumstances, B, C or D may be used.

B - This is the standard method

C - MAGI from 3 years prior is used if MAGI from 2 years prior is not available.

D - If the participant experiences a sudden decrease in income (due to retirement, job loss, etc), then they can request an IRMAA calculation based on MAGI from the year prior to the premium year.

Question 3

Which of the following are subject to IRMAA?

Medicare Part B

Medicare Part D

Medicare Part C (separate charges from Part B or D, if any)

Medicare Supplement

Answer 3

Part B and Part D only.

Part C and Medicare Supplements are private insurance and therefore are not subject to IRMAA.

Question 4

T or F

The Medicare IRMAA MAGI brackets are adjusted for inflation each year.

Answer 4

False. They are fixed at current levels through 2019.