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IRMAA Surcharges Can Be Paid with HSA Funds
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IRMAA — the Income-Related Monthly Adjustment Amount, the income-based surcharge that raises Medicare Part B and Part D premiums for higher earners — can be paid directly from a Health Savings Account (HSA). Chris Stein explained that IRMAA is not a separate fee or a tax; it simply increases the Medicare premium itself. Because Congress expressly allows HSA funds to pay Medicare Part B and Part D premiums, IRMAA is covered by extension, since it is part of those premiums.
Full analysis
IRMAA — the Income-Related Monthly Adjustment Amount, the income-based surcharge that raises Medicare Part B and Part D premiums for higher earners — can be paid directly from a Health Savings Account (HSA). Chris Stein explained that IRMAA is not a separate fee or a tax; it simply increases the Medicare premium itself. Because Congress expressly allows HSA funds to pay Medicare Part B and Part D premiums, IRMAA is covered by extension, since it is part of those premiums.
One nuance: for Part D, the IRMAA portion is collected separately by Social Security rather than by the private insurer administering the plan, but it still counts as part of the premium and qualifies for HSA payment. Notably, Medigap supplemental insurance premiums do not qualify for HSA payment — a distinction Stein called arbitrary but important to know.
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