Bill > HR3007

This bill modifies how Medicare calculates the Income-Related Monthly Adjustment Amount (IRMAA), which determines the premium rates for higher-income Medicare beneficiaries. Specifically, the bill excludes the proceeds from the sale of a principal residence from the calculation of modified adjusted gross income (MAGI) for IRMAA purposes, beginning January 1, 2025. The exclusion applies only once per individual, meaning that if a person has already used this exemption for a previous home sale, subsequent home sales would be included in the MAGI calculation. This change is designed to provide financial relief for Medicare beneficiaries who may have a temporary spike in income due to selling their primary home, ensuring that such a one-time financial event does not disproportionately increase their Medicare premiums. The bill amends Section 1839(i)(4)(A) of the Social Security Act to implement this modification, referencing the definition of principal residence as outlined in Section 121 of the Internal Revenue Code.