Medicare IRMAA Income Thresholds Increased Over 5% from 2023
The 2024 IRMAA thresholds will increase by over 5.00% which is great news. The bad news is that Medicare premiums are increasing by over 6%.
The Centers for Medicare Services (CMS) is announcing the 2024 IRMAA Thresholds now that the August CPI-U is official.
The 2024 IRMAA Thresholds will increase by over 5.00% from 2023 and begin at $103,000 for an individual.
Now please keep in mind that at any point between now and the beginning of 2024, Congress or the current Presidential Administration can alter these IRMAA Brackets, but if they do not then there will be at least a little bit of good news for seniors.
With the passing of the Medicare Modernization Act, the IRMAA Thresholds are to adjust based on the Consumer Price Index for Urban Consumers (CPI-U). If the CPI-U at the end of August of the current year is greater than the previous August then the IRMAA Brackets will increase.
| Single MAGI | Part B Premium | Part D Premium |
|---|---|---|
| < $97,000 | $164.90 | Premium (varies) |
| $97,000 to $123,000 | $230.80 | Premium + $12.20 |
| $123,000 to $153,000 | $329.70 | Premium + $31.50 |
| $153,000 to $183,000 | $428.60 | Premium + $50.70 |
| $183,000 to $500,000 | $527.50 | Premium + $70.00 |
| > $500,000 | $560.50 | Premium + $76.40 |
| Single MAGI | Part B Premium | Part D Premium |
|---|---|---|
| < $103,000 | $174.70 | Premium (varies) |
| $103,000 to $129,000 | $244.60 | Premium + $12.90 |
| $129,000 to $161,000 | $349.40 | Premium + $33.30 |
| $161,000 to $193,000 | $454.20 | Premium + $53.80 |
| $193,000 to $500,000 | $559.00 | Premium + $74.20 |
| > $500,000 | $594.20 | Premium + $81.00 |
IRMAA, according to the Code of Federal Regulations is the Income Related Monthly Adjustment Amount which by definition is:
"An amount that you will pay for your Medicare Part B and D coverage when your modified adjusted gross income is above the certain thresholds."
The Social Security Administration provides "Set of tables containing modified adjusted gross income (MAGI) ranges and income-related monthly adjustment amounts (IRMAA). There are 3 tables, each based on a person's income tax filing status".
By the way there is no language that would stop the IRMAA Brackets from going down if the CPI-U would actually deflate from year to year.
In terms of all the Thresholds within the IRMAA Brackets, due to the passing of the Bi-Partisan Budget Act of 2018 the 5th Threshold in the IRMAA Brackets will not adjust for inflation until 2028.
Understanding what income counts towards your Modified Adjusted Gross Income (MAGI) is crucial for IRMAA planning.
Learn more about strategies to reduce your MAGI and potentially avoid IRMAA surcharges.
Understanding IRMAA thresholds allows for better retirement income planning. Key strategies include timing income events, Roth conversions, and utilizing income sources that don't count towards MAGI.
Connect with a qualified professional who specializes in Medicare IRMAA and retirement income planning.
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