Reduce your Medicare premiums by understanding how IRMAA works. Medicare is supposed to be predictable, but some people get an unexpected shock when they see their premium bill. Keep reading to find out how you can plan ahead, reduce costs, and even appeal.
How to Reduce Your Medicare Premiums
Medicare is a great program, but if you’re not careful, you could end up paying more than expected. The standard monthly premium for Medicare Part B in 2024 is $202.90. However, if your income is above a certain level—an amount that changes every year—you’ll have to pay more for Part B and Part D drug coverage.
This extra charge is called IRMAA (Income-Related Monthly Adjustment Amount), and here’s the tricky part: it’s not based on your most recent income. Instead, Medicare looks at your tax return from two years ago. That means what you earned in 2024 (filed in 2025) will determine how much you owe in 2026. Click here to see IRMAA brackets which shows how much you could be charged for Medicare Part B and Medicare Part D based on your income.
Note: The information on this this article is provided for general educational purposes only and should not be considered tax, legal, or financial advice. We are not tax professionals, and the content we share may not reflect the most current tax laws or guidance. PLEASE DO NOT CALL US FOR TAX ADVICE.
If you believe your IRMAA fees are too high, you have options as listed below:
Request a IRMAA review
If you recently retired, got laid off, or sold your business, your IRMAA fees might not reflect your current income. If your income has dropped, you may qualify for a lower rate. You can submit this form to request a review: SSA-44. (this will take you to the Social Security Administration website)
Other Life-Changing Events that May Reduce Your IRMAA Responsibility
1) Divorce or Annulment
Getting divorced at 50 or older? You’re not alone—36% of divorces in 2019 involved this age group. If your income has decreased, you might qualify for reduced Medicare premiums. The SSA requires proof of your divorce and an estimate of your current earnings.
2) Losing a Spouse
This is closely related to the previous point. If you’ve lost your spouse and your income has significantly decreased, it could affect your Medicare. The Social Security Administration will also need proof of your spouse’s death and an estimate of your new income.
3) Getting Married
Marriage changes many things—including how Medicare calculates your costs. If you previously paid extra due to your individual income, but your new joint income is below the Medicare surcharge threshold, you could see lower premiums. Social Security requires proof of your marriage and updated income information before making any adjustments.
4) Switched to Part-Time work
If you recently reduced your work hours—whether you moved to part-time, semi-retired, or took a lower-paying role—your income has likely dropped. Since Medicare bases premiums on past tax returns, they might not reflect your current situation. The good news? You can request a lower premium by providing proof to Social Security.
6) Lost Pension Income
Did your pension payments stop or shrink unexpectedly? If so, you might be eligible to lower your Medicare costs. This applies to certain pension types, like traditional defined benefit plans, that ended due to plan failure or a previous payout choice. For example, if you opted for a 20-year annuity and it recently ended, Medicare might still be charging you based on outdated income records. To adjust your premium, you’ll need documentation from your pension provider.
7) Property Loss from Unforeseen Events
Life throws curveballs that can cut your income. Things like natural disasters, floods or arson can damage your property. This includes rental houses, farms, or even business vehicles. These situations, which are beyond your control, could lead to a reduction in your income, affecting your Medicare rates. Contact Social Security with proof to adjust your premium. (Source)
You can use the same SSA-44 form to let them know about these life-changing events.
How to Reduce Your Medical Expenses
There are other ways to help you save on your healthcare expenses beyond reducing your IRMAA responsibility. Medicare usually covers 80% of your medical bills, but that leaves you with 20% to pay. That’s where a Medigap plan can save you a lot of money. It helps cover gaps not paid for by Medicare. Want to see your Medigap options? Just click this link for a free quote.
Get a Medigap Quote Enroll in Medigap
Need more help? Contact us! We never charge for quotes or enrollment. We get paid a commission directly by the insurance companies at no charge to you. Our help is completely free and you are guaranteed the lowest price allowed by law. Call us at 800-930-7956 for help with Medicare insurance (Please do not call for help with IRMAA tax related issues)
Remember: We are health insurance agents here to help you figure out supplemental Medicare insurance. The IRMAA information in this article is provided for general educational purposes only and should not be considered tax, legal, or financial advice. We are not tax professionals, and the content we share may not reflect the most current tax laws or guidance.
Before making decisions that could affect your taxes or financial situation, you should consult with a qualified tax professional, CPA, or financial advisor who can provide advice tailored to your specific circumstances.