Glossary
IRMAA (Income-Related Monthly Adjustment Amount)
An extra monthly charge added to Medicare Part B and Part D premiums for people whose income was above a set line. It is said "ur-muh".
IRMAA stands for Income-Related Monthly Adjustment Amount, and it is said out loud as "ur-muh". It is an extra amount added to your monthly Medicare Part B premium, and to your Part D drug premium, when your income was above a line that Congress sets. The surprising part, and the part that catches most people, is the timing. Social Security looks at the tax return you filed two years ago, not the money you have coming in now. So the amount you pay this year is based on income from two years back. This matters to you because a one-time event in that earlier year, such as selling a house or cashing in an investment, can raise your premium now even though your income has since gone back down. If your income dropped because of a life-changing event such as retiring, being widowed, or a divorce, you can ask Social Security to use your newer, lower income instead by filing Form SSA-44.