1. What is Medicare Premium Calculation?

The Medicare premium consists of a base amount plus an Income-Related Monthly Adjustment Amount (IRMAA) based on your Modified Adjusted Gross Income (MAGI). Higher-income beneficiaries pay more for Medicare Part B and D.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Base Premium — Standard Medicare Part B premium (changes annually)
• IRMAA — Additional amount based on your MAGI from two years prior
• MAGI — Modified Adjusted Gross Income (your income plus tax-exempt interest)

3. Understanding IRMAA

Details: IRMAA is calculated based on income brackets that differ for single filers and married couples filing jointly. The thresholds are adjusted annually for inflation.

4. Using the Calculator

Tips: Enter the current base premium (default is $174.70 for 2024), your MAGI from two years prior, and your filing status. The calculator will determine if you owe IRMAA and your total premium.

5. Frequently Asked Questions (FAQ)

Q1: Why is my premium based on income from two years ago?
A: Medicare uses the most recent tax data available, which is typically two years prior to the current year.

Q2: 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.

Q3: Does this include Medicare Part D?
A: This calculator shows Part B premiums. Part D also has IRMAA surcharges with similar income thresholds.

Q4: How often are premiums recalculated?
A: Premiums are recalculated annually based on your tax return from two years prior.

Q5: Where can I find the official IRMAA brackets?
A: The Social Security Administration publishes updated brackets each year on their website.