How IRMAA Can Increase Your Medicare Premiums In Retirement

Many assume they will be free of health insurance premiums once they reach Medicare age. Others think that everyone pays the same Medicare premiums for the same coverage. Unfortunately, many retirees are shocked to find out that their Medicare premiums are tied to their income in retirement. Knowing this could lead many people to make different retirement-planning choices leading up to becoming eligible for Medicare.

You might think that you will no longer have an income once you stop working. However, your Medicare Part B premiums are based on your household income. There is a two-year look-back period, and what is included in this income calculation may shock you. However, you have options when dealing with the sticker shock of Medicare premiums in retirement.