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 their Medicare coverage.

2. How Does the Calculator Work?

The calculator uses the Medicare premium formula:

Where:

• \( Base \) — Standard monthly premium (changes annually)
• \( IRMAA \) — Income-related monthly adjustment amount
• \( MAGI \) — Your modified adjusted gross income from tax return

Explanation: The IRMAA is calculated based on income brackets that vary by filing status.

3. Understanding Premium Components

Details: The base premium is the standard amount all beneficiaries pay, while IRMAA is an additional amount for higher-income beneficiaries.

4. Using the Calculator

Tips: Enter your MAGI from your tax return and select your filing status. The calculator will determine if you owe an IRMAA surcharge.

5. Frequently Asked Questions (FAQ)

Q1: What counts as MAGI for Medicare premiums?
A: MAGI includes your adjusted gross income plus tax-exempt interest income.

Q2: How often are IRMAA amounts updated?
A: IRMAA brackets and amounts 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.

Q4: When does IRMAA take effect?
A: IRMAA is based on your income from two years prior (e.g., 2023 premiums based on 2021 income).

Q5: Does IRMAA apply to all Medicare parts?
A: IRMAA applies to Part B and Part D premiums, but not Part A.