H.R. 3007: Medicare Protection Act of 2025

The Medicare Protection Act of 2025 proposes changes to how certain income is calculated for Medicare, specifically focusing on the Income-Related Monthly Adjustment Amount (IRMAA). Here are the main provisions of the bill:

Primary Changes to Income Calculation

The bill seeks to amend the Social Security Act to exclude certain amounts from the adjusted gross income that is used to calculate IRMAA, which can affect the premiums some Medicare beneficiaries must pay. The specific change involves:

• Exclusion of income derived from the sale of a principal residence when determining an individual’s modified adjusted gross income for IRMAA purposes.
• This exclusion applies to sales that occur in years beginning on or after January 1, 2025.
• However, if a principal residence sale has already been excluded from the definition of modified adjusted gross income in previous calculations, it cannot be excluded again.

Impact on Medicare Beneficiaries

This adjustment aims to provide financial relief for those selling their homes, as it may help them avoid a higher premium for Medicare based on their overall income for that year which could temporarily increase due to the sale of a house.

Future Implementation

The bill outlines that the proposed changes to the IRMAA calculations are set to take effect in the year 2025, meaning beneficiaries will need to be aware of these rules well before then to understand how the sale of their home might affect their Medicare costs.

Current Status

The bill was introduced to the House of Representatives on April 24, 2025, and has been referred to the Committee on Energy and Commerce, as well as the Committee on Ways and Means for further consideration.

Relevant Companies

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