I hope you enjoy reading this blog post.

If you need help with your retirement planning, click here to see if we're a fit.

  • Megan Waters, AAMS®,CMFC®

How High-Net-Worth Retirees Can Prepare For Medicare IRMAA

Let’s face it: retirement is expensive! Between lifestyle costs, taxes, and insurance, there’s a lot you have to plan for and coordinate in your spending plan.

While you may know that Medicare is a critical component of any retirement spending plan, there’s one expense that high-net-worth retirees in particular need to keep a close eye on—Medicare IRMAA.

What is Medicare IRMAA?

It’s a surcharge that increases your standard premium on Medicare part B, medical coverage, and part D, prescription drug coverage, if you earn above the annual threshold. Ultimately, IRMAA can increase your Medicare costs, making healthcare more expensive.

Read this article to learn how Medicare IRMAA impacts today’s retirees and some smart strategies to avoid carelessly paying too much.

What’s Medicare IRMAA?

IRMAA, or income-related monthly adjustment amount, can surprise new retirees because many don’t understand how it works and may not even know it exists.

As your income rises, IRMAA increases your monthly Medicare premiums. It’s important to note that a premium is different from a deductible. A premium represents the cost of maintaining coverage, and a deducible is your portion of the service or product expense.

The concept of IRMAA is very similar to how income tax brackets affect your tax bill when you file your annual tax return. If your taxable income pushes you into a higher tax bracket, you’ll owe more on a larger portion of your income.

For 2022, the base Medicare Part B premium is $170.10. This chart shows the Part B premiums for different income levels.



Monthly Premium

$91,000 or less

$182,000 or less


$91,000 – $114,000

$182,000 – $228,000


$114,000 – $142,000

$228,000 -$284,000


$142,000 – $170,000

​$284,000 – $340,000


$170,000 – $500,000

$340,000 – $750,000


Greater than $500,000