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Understanding Medicare Part D-IRMAA

Do I need Medicare Part D?

If you choose to enroll in a Medicare Supplement Plan (Medigap) or keep original Medicare, Medicare Part D or Prescription Drug coverage must be purchased separately. A late enrollment penalty may apply if you go without Medicare Part D for any continuous period of 63 days or more after your initial enrollment period. Medicare Part D Plans charge an additional monthly premium that varies plan to plan.

How much does a Medicare Part D Plan cost?

For the majority of people, you will only pay your Medicare Part D premium in addition to your Medicare Part A & B premium. The chart below shows what your Part D premium will be based on your income from your IRS tax return 2 years prior.

What about a Medicare Part D-IRMAA?

If your modified adjusted gross income is above a certain amount, you may pay a Part D income-related monthly adjustment amount (Part D-IRMAA) as shown above. You'll pay the Part D-IRMAA amount in addition to your monthly plan premium, and this extra amount is paid directly to Medicare, not to your insurance plan.

Social Security will contact you if you have to pay Part D-IRMAA, based on your income. The amount you pay can change each year. If you have to pay a higher amount for your Part D premium and you disagree (for example, if your income goes down), use this form to contact Social Security. If Social Security notifies you about paying a higher amount for your Part D coverage, you’re required by law to pay the Part D-Income Related Monthly Adjustment Amount (Part D-IRMAA). If you don’t pay the Part D-IRMAA, you’ll lose your Part D coverage. You’re required to pay the Part D-IRMAA, even if your employer or a third party (like a teacher’s union or a retirement system) pays for your Part D plan premiums. If you don’t pay the Part D-IRMAA and get disenrolled, you may also lose your retirement coverage and you may not be able to get it back.

Get your Part D Plan premium automatically deducted

Contact your drug plan (not Social Security) if you want your premium deducted from your monthly Social Security payment. Your first deduction will usually take 3 months to start, and 3 months of premiums will likely be deducted at once.

After that, only one premium will be deducted each month. You may also see a delay in premiums being withheld if you switch plans. If you want to stop premium deductions and get billed directly, contact your drug plan.

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