The proposed legislation aims to modify Title XVIII of the Social Security Act by altering how Medicare's Income Related Monthly Adjustment Amount (IRMAA) is calculated. Specifically, it seeks to amend the definition of "modified adjusted gross income" used for determining these adjustments, which can impact a beneficiary's Medicare premiums. Effective January 1, 2025, the bill mandates that income generated from the sale of an individual's principal residence will be excluded from the IRMAA calculation. This provision is intended to prevent a beneficiary's Medicare premiums from increasing due to a one-time income spike from a home sale. However, this exclusion is limited, as it can only be applied once per individual for the sale of a principal residence, with the definition of "principal residence" aligning with the Internal Revenue Code.