Medicare Calculators

A Medicare "Initial Enrollment Period" (IEP) is a seven-month window where someone first becomes eligible to sign up for Medicare, typically starting three months before the month you turn 65, including. your birthday month, and ending three months after you turn 65; during this period, you can enroll in both Part A (hospital insurance) and Part B (medical insurance) without penalty. 

Key points about the Medicare Initial Enrollment Period:

• Duration: 7 months 
• When it starts: 3 months before the month you turn 65 
• When it ends: 3 months after the month you turn 65 
• Importance: This is the only time you can enroll in Medicare without facing a potential late enrollment penalty if you miss it. 

What happens if you miss your Initial Enrollment Period?

• General Enrollment Period: You can still sign up for Medicare during the "General Enrollment Period" which runs from January 1st to March 31st each year, but you may have to pay a late enrollment penalty on your Part B premium.

The Part D penalty is determined by taking 1% of the “national base beneficiary premium” times the number of months someone has gone without having Part D or creditable drug coverage.

Note: The national base beneficiary premium changes from year to year, so your penalty will fluctuate as well.

Medicare Part B IRMAA, which stands for "Income-Related Monthly Adjustment Amount," is an additional premium that some Medicare beneficiaries must pay on their Part B coverage if their income exceeds a certain threshold, essentially meaning people with higher incomes pay a higher monthly Medicare Part B premium based on their previous year's tax return income. 

Key points about IRMAA:

• Income Calculation: The Social Security Administration (SSA) determines your IRMAA based on your Modified Adjusted Gross Income (MAGI) reported on your tax return from two years prior. 
• Higher Income, Higher Premium: The higher your income falls within the IRMAA brackets, the greater your additional premium amount will be. 
• Impact on Part B Coverage: IRMAA only applies to Medicare Part B coverage, which covers doctor's services, outpatient care, and certain other medical services. 

How it works:

• Income Thresholds: The SSA sets specific income brackets, and if your income falls above a certain level, you will be subject to an IRMAA surcharge. 
• Sliding Scale: The IRMAA surcharge is applied on a sliding scale, meaning the higher your income, the higher your additional premium. 
• Notification: If you are eligible for IRMAA, the SSA will notify you and your Medicare premium will reflect the additional amount. 

Important Considerations:

• Tax Filing Status: Your IRMAA calculation is based on your tax filing status, whether you are single, married filing jointly, or married filing separately. 
• Changes in Income: If your income significantly changes, you can contact the SSA to review your IRMAA status and potentially adjust your premium.