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Income Related Monthly Adjustment Amount (IRMAA)

Income Related Monthly Adjustment Amount (IRMAA)

IRMAA is an additional amount that is added to the beneficiaries Part B and Part D monthly premiums for individuals who had a modified adjusted gross income that exceeded a certain amount. The IRMAA is based on a beneficiary’s income as reported on their tax return from two years.

Income Related Monthly Adjustment Amount (IRMAA)

IRMAA is an additional amount that is added to the beneficiaries Part B and Part D monthly premiums for individuals who had a modified adjusted gross income that exceeded a certain amount. The IRMAA is based on a beneficiary’s income as reported on their tax return from two years.

IRMAA is an additional amount that is added to the beneficiaries Part B and Part D monthly premiums for individuals who had a modified adjusted gross income that exceeded a certain amount. The IRMAA is based on a beneficiary’s income as reported on their tax return from two years.

IRMAA affects Medicare beneficiaries' monthly premiums, potentially increasing costs based on income levels. Understanding IRMAA helps individuals plan for healthcare expenses and consider strategies to mitigate premium increases.

Want to learn more about how IRMAA impacts your Medicare costs? Download our comprehensive e-book to gain valuable insights and strategies for managing healthcare expenses effectively.

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Book of Medicare is an accepted marketing publication by Medicare and Medicaid Services filed under MULTIPLAN_PACIFIC_BOM_M

Medicare Part A

Original Medicare Part A provides coverage for medically necessary:
  • Inpatient hospital care
  • Skilled nursing facility care
  • Home healthcare services
  • Acute care
  • Rehabilitation care
  • Skilled long-term care
  • Hospice care

Book of Medicare is an accepted marketing publication by Medicare and Medicaid Services filed under MULTIPLAN_PACIFIC_BOM_M

Medicare Part B

Original Medicare Part B provides 80 percent coverage for a wide range of medically necessary services and supplies, including:
  • Primary care physician visits
  • Outpatient care
  • Preventive care services
  • Durable medical equipment
  • Mental healthcare
  • Laboratory tests
  • X-rays and other diagnostic tests

Book of Medicare is an accepted marketing publication by Medicare and Medicaid Services filed under MULTIPLAN_PACIFIC_BOM_M

Medicare Part C

Medicare Part C, also known as Medicare Advantage Plans, are Medicare health plans offered by private insurance companies. These plans typically combine the benefits of Medicare Part A (hospital insurance) and Part B (medical insurance) with prescription drug coverage, all in one plan, which is then an MAPD plan.

Book of Medicare is an accepted marketing publication by Medicare and Medicaid Services filed under MULTIPLAN_PACIFIC_BOM_M

Medicare Part D

Medicare Part D helps cover the cost of prescription drugs; it is offered by private insurance companies and designed to work alongside Original Medicare. It is an optional program, which means the Medicare beneficiary does not have to enroll in a plan if they do not want prescription drug coverage. However, by not signing up for a Medicare Part D PDP when first eligible, a beneficiary will likely face a lifetime penalty if/when they decide to sign up later on.
  • Medicare Part D premiums are paid directly to the private insurance company. It has a deductible, copayments, and coinsurance for some drugs. The out-of-pocket costs to the beneficiary will depend on the Part D plan selected.
  • Medicare Part D does not cover all prescription drugs, and it does not cover drugs that are NOT medically necessary. It also does NOT cover drugs used for cosmetic purposes or for the treatment of weight loss or weight gain.
  • Plans change every year, so it is wise to seek out a local insurance agent to make sure the beneficiary is in a plan that is suitable for their needs.
Most Medicare drug plans have a coverage gap (also called the “donut hole”). This means there’s a temporary limit on what the drug plan will cover for drugs.
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Book of Medicare is an accepted marketing publication by Medicare and Medicaid Services filed under MULTIPLAN_PACIFIC_BOM_M

Medicare Supplement

Medicare Supplement Plans, also known as Medigap Plans, are a type of insurance which help cover the gaps not covered by Original Medicare. These costs include Part A and B deductibles, copayments, and coinsurance. Supplement plans are offered by private insurance companies and are designed to work alongside Original Medicare.
  • Medicare supplement plans are federally regulated standardized plans, which means they must follow certain rules set by the federal government. All Medicare Supplement plans must offer the same benefits regardless of which insurance company sells it.