Premium Estimator

It's likely IRMAA — an income-related surcharge added when your income is above set thresholds. It's based on your modified adjusted gross income from your tax return two years ago, so a higher-income year back then can raise today's premium. If your income has since dropped, you may be able to ask Social Security to reconsider. We can estimate your bracket.

IRMAA is the income-related monthly adjustment amount — a surcharge added to your Part B and Part D premiums when your income is above certain thresholds. Most people don't pay it, but higher earners do, in tiers that grow as income rises. Social Security determines it from your MAGI two years prior and notifies you if it applies.

It can. IRMAA is recalculated each year using your most recent tax data on file, and the income thresholds themselves can adjust annually. That means a surcharge you paid one year might shrink, grow, or disappear the next as your income changes. Because it always looks back about two years, a past income spike can take a while to fall off.

Possibly. If a qualifying life-changing event lowered your income — retirement, the loss of a spouse, or work reduction — you can ask Social Security to recalculate IRMAA using your current income instead of the two-year-old figure. Approved requests can reduce or remove the surcharge. We're happy to point you to the right form and explain the process.

IRMAA is based on your modified adjusted gross income (MAGI), which is roughly your adjusted gross income plus any tax-exempt interest, from your federal tax return two years prior. So your premiums this year reflect income from two years ago, using the most recent return the IRS has on file. Because of that two-year lookback, a high-income year can affect you later — and a drop can take time to show up.

IRMAA is tiered, so the surcharge grows as income rises through several brackets, applying to both your Part B and Part D premiums at the same time. At the highest brackets the added amount can be substantial, while most people with moderate incomes pay nothing extra. The exact dollar figures are set each year. Share your income range and we'll estimate which bracket you'd land in so there are no surprises.

Yes. Even with a Medicare Advantage plan, you keep paying your Part B premium (plus any IRMAA), because Advantage plans are how you receive your Medicare benefits, not a replacement for Part B. Some plans help by reducing part of that premium through a give-back benefit, and any plan premium would be on top of Part B. We factor all of this into the total when we estimate your monthly cost.

Usually, yes. If you're receiving Social Security benefits, your Part B premium — and any IRMAA — is typically deducted automatically from your monthly payment. If you're not yet collecting Social Security, Medicare bills you directly, often quarterly. Either way the amount is the same. We can help you understand what your net Social Security deposit will look like once Part B and any surcharge are accounted for.

Social Security recognizes specific events — such as retirement or reduced work hours, marriage, divorce, the death of a spouse, or loss of pension income — that can justify recalculating IRMAA using your current income instead of the two-year-old figure. You file a form and provide documentation. If one of these applies to you, the surcharge may shrink or disappear. We can point you to the right form and explain what to expect.

It can, temporarily. A large one-time gain — like profit from selling a home — can push your MAGI into an IRMAA bracket two years later, raising your Part B and Part D premiums for that year. Because it's a one-time spike, the surcharge usually falls off once your income returns to normal. If a sale is on the horizon, we can help you anticipate the timing so the bump doesn't catch you off guard.