Medicare Premiums Based on Income 2025
In 2025, with a standard Part B premium of $185, high-income beneficiaries could pay over $600 per month for Part B alone due to IRMAA surcharges.
Medicare is a vital healthcare program for individuals aged 65 and older, and certain younger individuals with disabilities. Understanding how Medicare premiums are determined, especially for those with higher incomes, is crucial for planning your healthcare costs in retirement. This article provides a comprehensive overview of how income affects Medicare Part B and Part D premiums in 2025, focusing on the Income-Related Monthly Adjustment Amount (IRMAA).
What is IRMAA?
IRMAA is a surcharge applied to your Medicare Part B (medical insurance) and Part D (prescription drug plan) premiums if your income exceeds certain thresholds. It’s important to note that IRMAA only affects Part B and Part D premiums; it does not apply to Part A (hospital insurance), which most people receive premium-free1. IRMAA charges apply to eligible Medicare beneficiaries, whether you have Original Medicare or Medicare Advantage.
The Social Security Administration (SSA) uses your income tax information from 2 years ago to determine if you owe an IRMAA in addition to your monthly premium3. The SSA does not determine IRMAA based on your current income. Instead, they use your modified adjusted gross income (MAGI) reported on your IRS tax return two years prior. This means that for 2025, the SSA will use your 2023 tax return to calculate your IRMAA2. This “look-back” period can result in unexpected premium increases for beneficiaries whose income has recently increased. For example, if your income in 2023 was significantly higher than in 2022, you may be surprised to find yourself subject to IRMAA in 2025, even if your current income is lower6. The SSA sets five income brackets that determine your IRMAA.
IRMAA Income Thresholds for 2025
The IRMAA income thresholds are adjusted annually for inflation. For 2025, the thresholds are as follows:
- Filing individually: Income greater than $106,000
- Married filing jointly: Income greater than $212,000
- Married filing separately: Income greater than $106,000
How Does IRMAA Affect Medicare Premiums?
If your income surpasses the IRMAA thresholds, you’ll pay a higher premium for Part B and Part D. The surcharge amount varies based on your income level and filing status (single, married filing jointly, or married filing separately).
For example, in 2023, the standard Part B premium is $164.90 per month. However, individuals subject to IRMAA could pay anywhere from $230.80 to $560.50 per month for Part B, depending on their income6. In 2025, with a standard Part B premium of $185, high-income beneficiaries could pay over $600 per month for Part B alone due to IRMAA surcharges.
It’s important to understand that IRMAA is calculated annually. Therefore, if your income fluctuates from year to year, your IRMAA and your Medicare premiums can also change.
Where to Find Official IRMAA Information for 2025
For the most up-to-date and official information on IRMAA in 2025, refer to the following official sources:
Centers for Medicare & Medicaid Services (CMS): The CMS website (cms.gov) provides detailed fact sheets and publications on Medicare premiums and deductibles, including IRMAA10.
Social Security Administration (SSA): The SSA website (ssa.gov) offers information on IRMAA and how it’s calculated. You can also contact the SSA directly with questions about your IRMAA.
