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Medicare Premium Calculation:
Based on Modified Adjusted Gross Income (MAGI) for 2023
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The Medicare Premium Calculator estimates your monthly Medicare Part B and Part D premiums based on your income. The calculation includes the standard premium plus any Income-Related Monthly Adjustment Amount (IRMAA) that applies to higher-income beneficiaries.
The calculator uses the following formula:
Where:
Explanation: Medicare premiums increase for higher-income beneficiaries through IRMAA surcharges that are determined by your tax filing status and MAGI from two years prior (2021 income for 2023 premiums).
Details: IRMAA is an extra charge added to your premium if your income exceeds certain thresholds. There are five income tiers with progressively higher IRMAA amounts for both Part B and Part D.
Tips: Enter your expected Modified Adjusted Gross Income (MAGI) and select your filing status. The calculator will determine which IRMAA tier applies and calculate your total estimated premium.
Q1: What counts as Modified Adjusted Gross Income (MAGI)?
A: MAGI is your Adjusted Gross Income plus tax-exempt interest income. It's the amount shown on line 11 of your 2021 IRS Form 1040 plus any tax-exempt interest from line 2a.
Q2: Why is my income from two years ago used?
A: Medicare uses the most recent tax return available from the IRS, which is typically two years prior to the current year.
Q3: Can I appeal my IRMAA determination?
A: Yes, you can request a new determination if you've experienced certain life-changing events that reduced your income.
Q4: Does this include Part A premiums?
A: No, most people don't pay a Part A premium. This calculator only estimates Part B and Part D premiums.
Q5: How often do premiums change?
A: Base premiums are adjusted annually, and IRMAA tiers are updated for inflation each year.