Did your Medicare premium suddenly skyrocket? If you think you are paying more than you should, listen up, you may have recourse. But you need to act quickly.

Welcome to The Retirement Fix, a podcast for less stress and more success in your go-go retirement years. I’m John Gigliello, a CERTIFIED FINANCIAL PLANNER™ with the Albany Financial Group and I’m here to be your guide to keeping more of your hard-earned money by making smart financial decisions in retirement. This podcast is for people nearing or already in retirement who want to learn more about proactive tax planning, retirement income planning, social security timing, investment management and asset preservation. After a life-altering health issue at age 39, my calling in life became clear: To share my knowledge of personal finance with people who are looking to make smart and responsible choices with their money.

If you still have questions after listening to this episode, please visit my website at www.jgigliello.com, where you’ll find all of my contact information as well as details of the services I offer.

Now onto the subject of this episode - Today I’m going to talk about the IRMAA surcharge that catches many retirees by surprise, and what to do if you believe you are paying more than your share.

IRMAA, which stands for Income-Related Monthly Adjustment Amount, is an extra monthly charge added to your Medicare Part B and Part D premiums if, essentially, you make too much money in retirement. The Social Security Administration determines your IRMAA based on the Modified Adjusted Gross Income reported on your tax return two years prior. So 2025 premiums are based on your 2023 returns.

Medicare Part B covers doctor’s visits and outpatient services and currently costs $185.00 monthly. Part D covers prescription drugs, the premium for which varies based on the plan you choose, but averages around $46.50 per month.

In 2025, individuals who made more than $106,000 in 2023 and married couples filing jointly who earned more than $212,000, will owe IRMAA.

The surcharges can be quite steep. And individual who earned between $106,000 and $133,000 or a couple who earned between $212,000 and $266,000, will owe an additional $74 per month for Part B and $13.70 for part D, and that’s the lowest bracket.