HI 01130.001 Overview of the Medicare Income-Related Monthly Adjustment Amount (IRMAA) Annual Verification Process
Section 1839(i) of the Social Security Act;
20 CFR 418.1135;
20 CFR 418.1140
Each year when SSA asks IRS for information to determine the next year’s IRMAA, SSA obtains and uses IRS modified adjusted gross income (MAGI) data to verify beneficiary MAGI reports and to obtain IRS MAGI from two years before the premium year (PY-2) when SSA has been temporarily using PY-3 MAGI (see HI 01101.001C.). These Annual Verification data are used to make retroactive changes to IRMAA.
Starting in October 2007 and each year thereafter SSA will verify MAGI used to determine IRMAA for:
Beneficiaries for whom SSA has been temporarily using PY-3 data,
PY-3 beneficiaries for whom SSA has been using the beneficiary’s copy of their PY-2 or PY-1 tax return,
Beneficiaries for whom SSA has been using estimates of PY-2 or PY-1 MAGI supplied by a beneficiary in conjunction with a life-changing event, and
Beneficiaries for whom SSA removed IRMAA based on the beneficiary attesting no need to file a tax return or an IRS transcript indicating no tax return was filed.
SSA will not verify amended tax returns and corrected tax information used to determine IRMAA. For information about amended returns see HI 01120.045. For information about tax information corrected by IRS see HI 01120.050.
HI 01101.001 – Description of the Medicare Part B Income-Related Monthly Adjustment Amount (IRMAA)
HI 01101.020 – IRMAA Sliding Scale Tables