IRMAA & LEP

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IRMAA & LEP: What You Need to Know

Some Medicare beneficiaries may pay extra fees on top of their standard Part B premium due to:

IRMAA (Income-Related Monthly Adjustment Amount) – Based on your income from 2 years ago
LEP (Late Enrollment Penalty) – If you delayed signing up for Part B or Part D without other coverage

Part B IRMAA (2025)

Most people pay the standard $185/month for Part B.
If your income is above a certain amount, you’ll pay an additional IRMAA charge added to your premium.

Part D IRMAA (2025)

Most Medicare drug plans charge a monthly premium. If your income is above a certain level, you’ll also pay a Part D IRMAA, which is added to your drug plan premium.

This extra amount is based on your modified adjusted gross income (MAGI) from your IRS tax return two years prior—just like Part B IRMAA.

📌 Important:
You pay the Part D IRMAA directly to Medicare, not to your plan—even if your premium is automatically deducted.

Late Enrollment Penalty (LEP) Overview

If you delay enrolling in Medicare Part B or Part D and don’t qualify for a Special Enrollment Period, you may face lifelong penalties.

Part B LEP

You’ll pay a 10% penalty for each full 12-month period you delayed enrollment.
For example, if you waited 2 years:
📌 $185 (2025 base premium) + $37 (20% penalty) = $222/month

Note: The penalty is based on the standard Part B premium, not your income-adjusted rate.

Part D LEP

You’ll pay an extra 1% per month for each month you went without creditable drug coverage.
Example: 14-month delay = 14% penalty
📌 $36.78 (2025 base premium) × 14% = $5.20/month

This penalty is added to your drug plan premium and lasts as long as you have Medicare drug coverage.

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