Avoid Overpaying! What to Do if You Face Higher Medicare Premiums in 2025

Most people on Medicare will pay the standard $185 per month for Part B in 2025, but if your income is higher, your premium will be higher too.

About 8% of Medicare beneficiaries will pay what’s called IRMAA (Income-Related Monthly Adjustment Amount) in 2025.

This extra charge is based on your income from 2023, so your tax return from two years ago decides your premium now.
 

What is IRMAA and Who Pays More?

If your individual income in 2023 was over $106,000 (or over $212,000 for couples), you will pay more than the standard premium.

Here’s a quick look:

• $106,001 to $133,000 (single) or $212,001 to $266,000 (couples): pay $259 per month

• $133,001 to $167,000 or $266,001 to $334,000: pay $370 per month

• $167,001 to $200,000 or $334,001 to $400,000: pay $480.90 per month

• $200,001 to $500,000 or $400,001 to $750,000: pay $591.90 per month

• Over $500,000 (single) or $750,000 (couples): pay $628.90 per month

These higher premiums help Medicare stay funded, but they can impact your budget if you are not prepared.

What You Can Do if You Face IRMAA in 2025

1. Watch your mail: Social Security will send you a notice if you need to pay IRMAA.

2. Appeal if your income has dropped: If you retired, lost your job, or had another major life change that lowered your income, you can request a new determination with Form SSA-44.

3. Plan ahead: Because your premium is based on income from two years ago, consider Roth conversions, charitable distributions, or other tax strategies to manage your income for future years.

4. Check for help: Programs like Medicare Savings Programs or Extra Help can help cover some costs if you qualify.

This Matters More Than You Think

Many seniors on Medicare are surprised by these higher premiums.

Understanding how IRMAA works helps you avoid unexpected bills and allows you to adjust your budget ahead of time.

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