|2009 Income Related Monthly Adjustment Amount (IRMAA)|
The Medicare Part B premium published by the Centers for Medicare & Medicaid Services (CMS) in September of each year represents approximately 25% of the full cost of Part B medical coverage.
The Federal Government subsidizes approximately seventy five percent of the cost for Medicare Part B from General Revenue Funds.
Most people will continue to pay 25% of the cost of Medicare Part B.
Effective January 2007, individuals affected by IRMAA, pay a larger percentage of the cost for Medicare Part B and the Federal Government pays a reduced percentage of the total cost. The amount of your modified adjusted gross income (MAGI) determines the amount of your Part B premium.
In general, the higher your MAGI, the higher your premium.
Premium surcharges for late enrollment or reenrollment will continue to be calculated based on the standard 25% Part B monthly premium.
The government will phase in the Medicare Part B premium due to IRMAA over a three-year period. Effective January 2007, 33 percent of the IRMAA premium increase amount will apply, 67 percent will apply effective January 2008, and 100 percent effective January 2009.
See the following chart showing the amount of the Medicare Part B premium for 2009.
¬†2009 IRMAA Chart to Determine Amount of Medicare Part B Premium
An Individual who is unmarried and has a modified adjusted gross income of $163,000.00 would pay a Part B premium amount of $250.50.
Medicare uses your income for the year 2007 to determine the premium you pay for 2009. You may only use a more current year of income to determine the premium you pay, if you have a life-changing event.
Examples of life changing events:
¬†Examples that are not life-changing events:
There will be situations where you may have a one-time event causing an increase in your income for the tax year Social Security is using to impose IRMAA. This type of event would not be considered a life-changing event.
¬†Examples of one-time income that cause an increase and are not life-changing events:
If you have a life-changing event, you should ask Social Security for a new initial determination. This means they would use a more current year of income if it would lower the amount of your premium due to IRMAA.