Medicare Part D
Earn Over $109K? Your 2027 Medicare Surcharge, Montgomery AL
Montgomery, Alabama — As Medicare's Annual Enrollment Period runs through Dec. 7, higher-earning retirees in Montgomery are getting a fresh look at how their income will shape what they pay for Part B and Part D in 2026. The income thresholds that trigger the extra charge — known as IRMAA — start at $109,000 for a single filer next year, and the surcharge climbs in tiers from there.
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Key takeaways
- IRMAA surcharges kick in for single filers with income above $109,000 and joint filers above $218,000 in 2026.
- The extra amount is added to both your Part B and Part D premiums, and it's billed even if your drug plan is through a private insurer.
- Social Security uses your IRS return from two years earlier — for 2027 premiums, that means your 2025 tax return.
- If your income has dropped because of a life event like retirement, you can ask Social Security to reconsider using Form SSA-44.
If your income sits near one of those lines, it pays to know where the brackets fall before your 2027 premiums are locked in.
What IRMAA actually is
IRMAA stands for the Income-Related Monthly Adjustment Amount. It's not a separate bill — it's an add-on to the Part B premium (which almost everyone pays) and to the Part D premium (which people with drug coverage pay). Most people with Medicare pay the standard premium and never see an IRMAA charge. Only beneficiaries above the income thresholds pay more.
The surcharge exists because Medicare is partly funded by beneficiary premiums, and Congress decided higher-income enrollees should cover a larger share.
The 2027 income brackets
The Social Security Administration uses your modified adjusted gross income (MAGI) to place you in a bracket. There are five surcharge tiers above the standard premium. CMS publishes the 2027 brackets later in the fall, typically in November.
- Single filers: income above $109,000
- Married filing jointly: income above $218,000
- Married filing separately: a separate, tighter schedule that reaches the top tier much sooner
Each higher bracket adds a larger dollar amount to both your Part B and Part D premiums. The very top tier applies to single filers with income at or above $500,000 and joint filers at or above $750,000. The exact dollar surcharge for each tier is published by CMS at medicare.gov each fall.
Why 2025 income decides your 2027 premium
This is the part that surprises many people: IRMAA looks backward. Your 2027 premium is based on the tax return you filed in 2026 for the 2025 tax year. That two-year lag is written into the law.
So a one-time bump in 2025 income — from selling a home, cashing out an IRA, or taking a large Roth conversion — can push you into an IRMAA bracket in 2027, even if your 2027 income is much lower.
When you can appeal
If your income has fallen because of a "life-changing event," you can ask Social Security to use a more recent year. Qualifying events include:
- Retirement or reduced work hours
- Loss of a spouse
- Divorce
- Loss of pension income
- A settlement from an employer's closure or bankruptcy
The form is SSA-44, available at ssa.gov. You'll need documentation of the event and an estimate of your new income. Montgomery residents can also get free, one-on-one help from Alabama's State Health Insurance Assistance Program (SHIP), which serves Montgomery County and the rest of the state.
What Part D enrollees should know for 2027
Even if you don't pay IRMAA, 2027 brings other Part D changes worth watching. The out-of-pocket cap for covered drugs is $2,100 in 2026 and $2,400 in 2027, and the maximum plan deductible is $615 in 2026 and $700 in 2027. The coverage gap — the old "donut hole" — was eliminated in 2025, leaving three simpler phases. If your drug costs are uneven month to month, the Medicare Prescription Payment Plan lets you spread payments across the year at no extra charge.
These features apply to Part D coverage broadly; specific plan details are set by each insurer.
By the numbers
Medicare Part B premium, 2006–2026
The standard monthly Part B premium has climbed from $88.50 in 2006 to $202.90 in 2026. Hover any point for that year’s premium.
Source: CMS. Standard premium shown; in some hold-harmless years many existing enrollees paid less. Confirm at Medicare.gov.
By the numbers
How people get Medicare in Montgomery County
(MA penetration in Montgomery County)
MA penetration from CMS enrollment data; Medigap share is an estimate. U.S. average is about 54% Medicare Advantage. These are area-level figures, not plan-specific.
Higher-income surcharges
2027 IRMAA income brackets
If your income is above a threshold, you pay an income-related surcharge (IRMAA) on top of your Part B and Part D premiums. Your 2027 surcharge is based on your 2025 tax return. CMS publishes the 2027 bracket amounts later in the fall.
| Income — single filer | Income — married, joint | Part B monthly premium | Part D surcharge |
|---|---|---|---|
| $109,000 or less | $218,000 or less | $202.90 | Plan premium only |
| $109,001 – $137,000 | $218,001 – $274,000 | $284.10 | + $14.50 |
| $137,001 – $171,000 | $274,001 – $342,000 | $405.80 | + $37.40 |
| $171,001 – $205,000 | $342,001 – $410,000 | $527.50 | + $60.40 |
| $205,001 – $500,000 | $410,001 – $750,000 | $649.30 | + $83.30 |
| Above $500,000 | Above $750,000 | $689.90 | + $91.00 |
Standard Part B premium is $202.90/month. Part D surcharges are added to your drug plan’s premium. Married-filing-separately uses a different, compressed schedule. Confirm current amounts at Medicare.gov.
Try it
Find your 2026 Medicare premium
Most people pay the standard Part B premium. If your 2024 income was higher, an income-related surcharge (IRMAA) applies. Enter your details to see your bracket.
Surcharges are added to your premiums and based on your 2024 tax return. Married-filing-separately uses a different schedule. Confirm at Medicare.gov.
Try it
How the 2026 Part D drug cap works
Slide to your estimated yearly prescription costs and see how the new $2,100 out-of-pocket cap protects you. This illustrates the standard Part D benefit; your plan may structure costs differently.
Once your out-of-pocket spending on covered drugs reaches $2,100, you pay nothing more for the rest of 2026. Confirm details at Medicare.gov.
Good to know
Frequently asked questions
Does IRMAA apply if I have Medicare Advantage instead of Original Medicare?
How will I know if I owe IRMAA in 2027?
Is the $109,000 threshold based on gross income or taxable income?
Where can I see the exact surcharge amounts for each bracket?
- CMS — Medicare costs & IRMAA (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.
Also for Montgomery
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This page was last updated: October 7, 2026.