Part D IRMAA
The Part D IRMAA for 2022 is based on the national base beneficiary premium of $33.37. Costs are higher for higher incomes.
Medicare Part D Premiums
You will pay a monthly premium for your Medicare Part D prescription drug coverage. The 2022 national base beneficiary premium is $33.37. Your plan may charge a higher premium, but you can expect to pay an amount near that value for your prescription drug coverage.
If in 2020 you made a higher income than $91,000 as an individual or higher than $182,000 filing jointly, you can expect to pay higher monthly premiums for your Medicare Part D coverage. This additional charge is called the Part D IRMAA.
Part D IRMAA
The Part D Income Related Monthly Adjustment Amount (IRMAA) adds a set amount to your Part D premiums based on your earnings as filed on your tax return. The higher your income, the higher your charge will be. You pay this Part D IRMAA in addition to your plan premium and pay it directly to Medicare, not to your plan.
The Part D IRMAA is calculated using the national base beneficiary premium of $33.37 in 2022. An individual who made between $91,000 and $114,000 in 2020 will pay an additional charge of +$12.40 for Part D. Someone who made between $114,000 and $142,000 will pay an additional +$32.10 for Part D. An individual who made between $142,000 and $170,000 in 2020 will pay a Part D IRMAA of +$51.70. Someone who made between $170,000 and $500,000 will pay an IRMAA of +$71.30. Those who made more than $500,000 in 2020 will pay a Part D IRMAA of +$77.90.
If you have a Medicare Advantage plan with prescription drug coverage, you still have to pay the Part D IRMAA directly to Medicare. This is because your prescription drug coverage is equivalent to Medicare Part D.
Late Enrollment Penalties
Medicare Part D also has a late enrollment penalty that could increase the rate of your monthly premiums. The penalty multiplies 1% of the national base beneficiary premium ($33.37 in 2022) times the number of full months you went without creditable prescription drug coverage. This number, rounded to the nearest $0.10, is added to your monthly Part D premium. Your penalty may increase each year as the base premium increases.
Part D Costs
You can expect a few costs for your Medicare Part D coverage. In addition to your monthly premium, you are also responsible for paying a plan deductible along with copayments or a coinsurance percentage for each covered drug. Costs for each drug will depend on whether they are generic, brand-name, preferred, or specialty. All of this will be spelled out in your plan’s benefits.
Are you looking for prescription drug coverage? Our team at Midwest Medigap can connect you with the plan in your area that has the coverage you need at a price that fits your budget. Call us today to set up an appointment.
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