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How Social Security Determines
You Have a Higher Premium

Social Security uses the most recent federal tax return the IRS provides to us. If you must pay higher premiums, they use a sliding scale to calculate the adjustments, based on your modified adjusted gross income (MAGI). Your MAGI is your total adjusted gross income and tax-exempt interest income.

See IRMAA Premium Income Table

If you must pay higher premiums, Social Security will send you a letter with your premium amount(s) and the reason for their determination. If you have both Medicare Part B and Medicare prescription drug coverage, you’ll pay higher premiums for each. If you have only one — Medicare Part B or Medicare prescription drug coverage — you’ll pay an income-related monthly adjustment amount only on the benefit you have. If you decide to enroll in the other program later in the same year, and you already are paying an income-related monthly adjustment amount, we’ll apply an adjustment automatically to the other program when you enroll. In this case, Social Security will not send you another letter explaining how they made this determination.

Remember, if your income isn’t greater than the limits described above, this law does not apply to you.

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