IRMAA Surcharge Growth Something Agents Should Focus On
NEWS: IRMAA Surcharge Growth Projections
The number of Americans subject to IRMAA payments to Medicare will rise from 7.6 million in 2024 to 12.6 million in 2030 according to the American Association for Medicare Supplement Insurance (AAMSI).
“The Medicare Income-Related Monthly Adjustment Amount (IRMAA) is an amount you may pay in addition to your Part B or Part D premium if your income is above a certain level,” reports Jesse Slome, director of the American Association for Medicare Supplement Insurance (AAMSI).
According to the Medicare insurance advocacy organization, the total IRMAA premium for a senior could be as much as $7,128 for Medicare Part B and $972 for Medicare Part D, prescription drug plan coverage.
“IRMAA is a monthly surcharge based on your previously reported income and usually it is deducted automatically from your monthly Social Security payment,” explains Slome. “For many, it comes as a complete surprise and can be a source of both confusion and anger because no one likes to see their Social Security payment reduced.”
Slome noted that in 2024 some 7.6 million people are expected to be subject to the IRMAA surcharge for Medicare Part B. “That represents about 14.1 percent of Medicare beneficiaries.” According to AAMSI data, the number subject to IRMAA surcharge for Part D coverage is slightly lower (6.5 million).
The number is projected to increase according to data from the CMS Medicare Trustees Report. “By 2030, as many as 12.6 million will be subject to the surcharge, and the annual cost increases each year,” Slome acknowledges.
Insurance agents need to educate their clients approaching Medicare age about IRMAA so that it doesn’t come as a surprise, Slome advises. “Sharing little known information is a great way to open new doors and establish yourself as the local Medicare agent they’ll choose to work with when selecting their best Medicare option.”
To access Medicare insurance statistics and information go to https://medicaresupp.org/medicare-insurance-statistics-2024/. The Association makes available the leading online directory enabling seniors to find local Medicare insurance agents in their Zip Code. To use the directory, go to: https://medicaresupp.org/find-local-agent/ .
The American Association for Medicare Supplement Insurance advocates for the importance of consumer awareness and supports insurance and financial professionals who market Medicare insurance solutions.