1. What is Medicare Part B Premium?

The Medicare Part B premium is the monthly fee you pay for outpatient medical coverage under Medicare. It consists of a standard base premium plus potential income-related monthly adjustment amount (IRMAA) for higher-income beneficiaries.

2. How is the Premium Calculated?

The premium calculation follows this formula:

Where:

• Base Premium — Standard amount all beneficiaries pay (changes annually)
• IRMAA Surcharge — Additional amount based on your Modified Adjusted Gross Income (MAGI)

3. Understanding IRMAA

IRMAA (Income-Related Monthly Adjustment Amount): This is an extra charge added to your premium if your MAGI exceeds certain thresholds. The Social Security Administration uses tax return information from two years prior to determine if you owe IRMAA.

2023 IRMAA Brackets:

• Single filers: $97,000-$123,000 = $65.90 IRMAA
• Joint filers: $194,000-$246,000 = $65.90 IRMAA
• Married filing separately: $97,000+ = $362.60 IRMAA

4. Using the Calculator

Instructions: Select your tax filing status and enter your Modified Adjusted Gross Income (MAGI) from your IRS tax return. The calculator will determine if you owe IRMAA and calculate your total monthly premium.

5. Frequently Asked Questions (FAQ)

Q1: Why is my premium higher than my neighbor's?
A: Higher-income beneficiaries pay an IRMAA surcharge in addition to the standard premium.

Q2: How often are IRMAA amounts updated?
A: IRMAA brackets are adjusted annually for inflation.

Q3: Can I appeal my IRMAA determination?
A: Yes, if you've had a life-changing event that reduced your income (retirement, divorce, etc.), you can file an appeal.

Q4: Is the premium deducted from Social Security?
A: Typically yes, if you receive Social Security benefits. Otherwise, you'll get a bill.

Q5: Does everyone pay the same base premium?
A: Most people pay the standard premium, but those who don't enroll when first eligible may pay a late enrollment penalty.