Medicare Protection Act of 2025
Medicare Protection Act of 2025 would change how income-related Medicare premiums (the IRMAA) are calculated. Specifically, starting in 2025, it would exclude from the income used to determine IRMAA any income (adjusted gross income) that comes from the sale of a principal residence, as defined by IRS Section 121. The intent is to lessen or eliminate the IRMAA impact for people who realize gains from selling their home. There is a guardrail in the language: the exclusion would apply unless the sale has previously been excluded from MAGI under this clause, which appears to limit double-counting for the same sale. The bill was introduced in the House by Rep. Brian Kiley (CA) and referred to committees; it does not yet have Senate action or a formal cost estimate in the text provided.
Key Points
- 1Excludes gains from the sale of a principal residence (as defined by IRC §121) from MAGI used to calculate IRMAA for months beginning in 2025 onward.
- 2Applies to Medicare Part B and Part D IRMAA determinations, effectively reducing or eliminating those added premiums for qualifying sale income.
- 3The exclusion is limited by a condition: it would not apply if the sale has already been excluded from MAGI under this clause for the individual.
- 4Uses the existing definition of principal residence from the tax code; MAGI remains the measure used to determine IRMAA, but the excluded amount would not be counted.
- 5Status and process: introduced in the House (HR 3007) by Rep. Kiley and sent to the Committee on Energy and Commerce and Ways and Means; no Senate text or cost estimate provided in the filing.