Medicare Part D

IRMAA Surcharges on Medicare Part B and D in Opelika

OPELIKA, Ala. — As Medicare's Annual Enrollment Period runs through Dec. 7, many Lee County retirees are noticing something on their planning worksheets that catches them off guard: a higher-income surcharge on Part B and Part D. It's called IRMAA, and for 2026 it kicks in above $109,000 of income for a single filer. Here's what that means in plain English — and how to check whether it applies to you.

What IRMAA actually is

IRMAA stands for the Income-Related Monthly Adjustment Amount. It's an extra amount that gets added to your Part B premium and, if you have Part D drug coverage, to your Part D premium as well.

It is not a penalty for doing something wrong. It's a sliding surcharge that applies to people whose income is above a set threshold. Most people on Medicare do not pay it — but a growing number of working retirees, people who sold a home, or households with strong investment income do.

The IRMAA income thresholds

For 2026, IRMAA begins above $109,000 in modified adjusted gross income for a single filer, and above $218,000 for a married couple filing jointly. Below those numbers, you pay the standard Part B premium and no Part D adjustment.

Above them, the surcharge climbs in tiers. The higher your income, the higher the adjustment on both Part B and Part D. The top tier applies to single filers with income at or above $500,000 (and married couples at or above $750,000).

Two important details people miss:

• Both spouses pay it. If a married couple crosses the threshold, each spouse enrolled in Medicare pays the surcharge on their own premium.
• Part D IRMAA is separate from your plan's premium. It's billed by Medicare, not by your drug plan, even though it's tied to having Part D coverage.

Medicare looks back two years

This is the part that trips people up. Your 2026 IRMAA is based on the tax return you filed for 2024. Social Security pulls that figure from the IRS.

So if 2025 was an unusually high-income year — maybe you sold property, took a large IRA distribution, or were still working full time — that could raise your 2027 premiums even if your income has since dropped.

The good news: if your income has fallen because of a specific life event, you can ask for a reconsideration.

Life events that let you appeal

Medicare recognizes several "life-changing events" that can justify using more recent income instead of your 2024 return. These include:

• Marriage, divorce, or the death of a spouse
• You or your spouse stopped working or reduced hours
• Loss of income-producing property (not from a sale)
• Loss or reduction of a pension
• A settlement from a former employer

To request a review, you file Form SSA-44 with Social Security and include documentation of the event and your expected income. If approved, your surcharge is recalculated.

What to do during AEP in Opelika

Opelika is in Lee County, where a range of stand-alone Part D drug plans and Medicare Advantage plans with drug coverage are offered each year. IRMAA does not change which plans you can join — it only changes what you pay on top of the plan's own premium.

That means two things during Annual Enrollment (Oct. 15 – Dec. 7):

1. Compare drug coverage on its merits. In 2027, Part D has a $700 maximum deductible and a $2,400 out-of-pocket cap on covered drugs. If your medication spending has been heavy, that cap alone may reshape what plan makes sense. 2. Budget for the surcharge separately. If you expect IRMAA to apply, add it to your monthly cost estimate — don't just look at the plan premium.

You may also want to ask about the new Medicare Prescription Payment Plan, which lets you spread your out-of-pocket drug costs across the calendar year in monthly installments instead of paying at the pharmacy counter.