IRMAA: What It Is and How It Affects Medicare Premiums
What Colorado Medicare beneficiaries need to know about income-related premium increases, tax returns, and possible ways to request a lower IRMAA
If your Medicare premium is higher than expected, IRMAA may be the reason.
IRMAA stands for Income-Related Monthly Adjustment Amount. It is an extra amount some people pay on top of their Medicare Part B premium and Part D drug coverage costs when their income is above certain levels.
At National Benefits Consultants, we help Colorado Medicare beneficiaries understand what IRMAA is, why it happens, and what steps may be available if the amount does not reflect their current financial situation.
IRMAA stands for Income-Related Monthly Adjustment Amount. It is an extra amount some people pay on top of their Medicare Part B premium and Part D drug coverage costs when their income is above certain levels.
At National Benefits Consultants, we help Colorado Medicare beneficiaries understand what IRMAA is, why it happens, and what steps may be available if the amount does not reflect their current financial situation.
What is IRMAA?
IRMAA is an added charge for people with higher income. Social Security determines whether IRMAA applies using tax information from the IRS.
For 2026, Medicare generally looks at your 2024 tax return to determine whether you owe an income-related adjustment amount.
IRMAA can affect:
For 2026, Medicare generally looks at your 2024 tax return to determine whether you owe an income-related adjustment amount.
IRMAA can affect:
- Medicare Part B
- Medicare Part D prescription drug coverage
Why this matters
Many people are surprised by IRMAA because they expect to pay only the standard Medicare premium.
In 2026, the standard Part B premium is $202.90 per month. If your income is above Medicare’s IRMAA thresholds, your Part B premium will be higher, and you may also owe an additional Part D IRMAA amount.
In 2026, the standard Part B premium is $202.90 per month. If your income is above Medicare’s IRMAA thresholds, your Part B premium will be higher, and you may also owe an additional Part D IRMAA amount.
How Medicare decides whether IRMAA applies
Social Security generally uses your modified adjusted gross income (MAGI) from your IRS tax return from two years earlier.
That means:
That means:
- 2026 premiums are generally based on 2024 income
- filing status matters
- the higher the income bracket, the higher the IRMAA amount
2026 IRMAA income levels
For 2026, Social Security says the standard premium applies if:
- you file individual and your MAGI is $109,000 or less
- you file jointly and your MAGI is $218,000 or less
What kinds of life changes can matter?
Sometimes IRMAA is based on income that no longer reflects your current situation.
Social Security allows you to request a lower IRMAA when certain life-changing events reduce your income. SSA’s IRMAA materials and Form SSA-44 are used for this process.
Common examples can include:
Social Security allows you to request a lower IRMAA when certain life-changing events reduce your income. SSA’s IRMAA materials and Form SSA-44 are used for this process.
Common examples can include:
- work stoppage
- work reduction
- marriage
- divorce or annulment
- death of a spouse
- loss of income-producing property
- loss or reduction of pension income
- employer settlement payment
Questions to ask if you get an IRMAA notice
1. Is Medicare using the correct tax year?
For 2026, the IRMAA decision is generally based on your 2024 tax return.
2. Has your income changed since that tax year?
A large drop in income after retirement or another major event may affect whether the IRMAA amount still makes sense.
3. Did you experience a qualifying life-changing event?
If so, you may be able to ask Social Security to review and lower the IRMAA determination.
4. Does IRMAA affect only Part B?
No. IRMAA can also apply to Part D prescription drug coverage.
5. Who sends the notice?
Social Security sends the initial IRMAA determination notice. Medicare explains that this notice includes information about the determination and appeal rights.
For 2026, the IRMAA decision is generally based on your 2024 tax return.
2. Has your income changed since that tax year?
A large drop in income after retirement or another major event may affect whether the IRMAA amount still makes sense.
3. Did you experience a qualifying life-changing event?
If so, you may be able to ask Social Security to review and lower the IRMAA determination.
4. Does IRMAA affect only Part B?
No. IRMAA can also apply to Part D prescription drug coverage.
5. Who sends the notice?
Social Security sends the initial IRMAA determination notice. Medicare explains that this notice includes information about the determination and appeal rights.
Common mistakes people make
People often run into trouble when they:
- assume the higher premium is a billing error
- do not realize IRMAA is based on a tax return from two years earlier
- ignore the notice instead of reviewing it
- fail to act after a major income-reducing life event
- forget that Part D can also be affected
How National Benefits Consultants helps
National Benefits Consultants helps Colorado Medicare beneficiaries understand how IRMAA fits into the bigger Medicare picture.
We can help with:
We can help with:
- explaining why your Medicare premium may be higher
- reviewing whether IRMAA may apply
- helping you understand whether a life-changing event might justify a request for review
- making sure IRMAA is considered alongside your Medicare plan decisions
- helping you avoid surprises as you transition into Medicare
Better decisions start with understanding the notice
IRMAA can be frustrating, but it is easier to deal with when you understand what caused it and what options may still be available.
A short review can help you decide whether the amount is expected, whether it may be challenged, and how it affects your Medicare planning.
A short review can help you decide whether the amount is expected, whether it may be challenged, and how it affects your Medicare planning.
Need help understanding an IRMAA notice or higher Medicare premium?
Call 720-488-9892 or contact National Benefits Consultants to review your options.