Medicare’s 2023 IRMAA Brackets and Part B Premiums Change

2022 inflation and a policy shift on a drug used in clinical trials lowered 2023 Medicare Part B premiums and increased the IRMAA brackets.

Continuing inflation and a shift in policy for the drug Aduhelm will change Medicare’s income-related monthly adjusted amount (IRMAA) brackets and the 2023 Part B premiums. Medicare beneficiaries will see an uptick in the modified adjusted gross income (MAGI) amounts used to serve as the foundation for the tiers used to calculate the IRMAA calculation and a reduction of the monthly premium Part B premiums.

Your MAGI can be found on your tax form. It is derived from your adjusted gross income (AGI) after certain allowable deductions and tax penalties. An easy way to find your AGI:

  • 1040 long form, line 37 
  • 1040A form, line 21 
  • 1040EZ, line 4

Investopedia can provide you with a nice overview of MAGI. (You may also notice from the link that MAGI is used to determine the deductible rules for Traditional IRAs and the income limits for contributing to Roth IRAs).

Those with single filing status will be able to earn $6,000 more, and couples filing together will be able to earn $12,000 more in MAGI before the Part B premiums increase in 2023.

2022 Medicare Parts A & B Premiums and Deductibles/2022 Medicare Part D Income-Related Monthly Adjustment Amounts

The following 2022 and 2023 Medicare tables were obtained from the Center for Medicare and Medicaid Services (CMS).

Beneficiaries who file individual tax returns with modified adjusted gross incomeBeneficiaries who file joint tax returns with modified adjusted gross incomeIncome-related monthly adjustment amountThe total monthly premium amount
Less than or equal to $91,000Less than or equal to $182,000$0.00$170.10
Greater than $91,000 and less than or equal to $114,000Greater than $182,000 and less than or equal to $228,000$68.00$238.10
Greater than $114,000 and less than or equal to $142,000Greater than $228,000 and less than or equal to $284,000$170.10$340.20
Greater than $142,000 and less than or equal to $170,000Greater than $284,000 and less than or equal to $340,000$272.20$442.30
Greater than $170,000 and less than $500,000Greater than $340,000 and less than $750,000$174.20$544.30
Greater than or equal to $500,000Greater than or equal to $750,000$408.20$578.30

2023 Medicare Part B total premiums for high-income beneficiaries

Beneficiaries who file individual tax returns with modified adjusted gross income:Beneficiaries who file joint tax returns with modified adjusted gross income:Income-Related Monthly Adjustment AmountTotal Monthly Premium Amount
Less than or equal to $97,000Less than or equal to $194,000$0.00$164.90
Greater than $97,000 and less than or equal to $123,000Greater than $194,000 and less than or equal to $246,000$65.90$230.80
Greater than $123,000 and less than or equal to $153,000Greater than $246,000 and less than or equal to $306,000$164.80$329.70
Greater than $153,000 and less than or equal to $183,000Greater than $306,000 and less than or equal to $366,000$263.70$428.60
Greater than $183,000 and less than $500,000 Greater than $366,000 and less than $750,000$362.60$527.50
Greater than or equal to $500,000Greater than or equal to $750,000$395.60$560.50

Individuals in the lowest IRMAA tier will save $62.40 in total premiums and couples will save $124.80 after paying their Part b premiums for 2023.

About 93% of Medicare beneficiaries fall within the parameters of the first tier of the IRMAA brackets. 

Congress limited the rise of Part B premiums in 2021 because of the coronavirus pandemic. Medicare then responded to the Food and Drug Administration’s accelerated approval of Adulhelm, used for the treatment of Alzheimer’s disease that year, as justification for increasing Part B premiums for 2022. As a result, the monthly premium jumped from 14.5% or $148.50 to $170.10. This was defensible because at the time the Biogen drug was initially priced at $56,000 a year.

Biogen then cut the costs for its medication roughly in half to $28,200 and the CMS also decided to limit usage to only those enrolled in clinical trials. The result was a drop of about 3% in the 2023 Part B premium.

By the way, Medicare Part A continues to be free – providing you or your spouse paid Medicare taxes for at least 10 years while working!

About the Author

Francis Xavier (FX) Bergmeister, CLU®, ChFC®, CASL®, ChSNC® has been Certified Financial Planner® for 30 years. He is a graduate of the Wharton School and earned a Doctor of Arts from George Mason University. He provides retirement seminars thru Federal Career Experts.