Medicare Part D

IRMAA & Medicare Costs in Colorado Springs 2027

COLORADO SPRINGS — As Medicare's Annual Enrollment Period runs through December 7, many higher-income retirees along the Front Range are getting a closer look at a line item that surprises people every year: the income-related monthly adjustment amount, or IRMAA.

Colorado Springs retirees: what higher earners should know before Dec. 7

If your income is above a certain level, you pay more each month for Medicare Part B (medical insurance) and Part D (prescription drug coverage). The surcharge isn't a penalty — it's an extra amount that gets added to your standard premium. Knowing where the thresholds sit can help you plan ahead, especially if a recent life change has moved your income up or down. CMS typically publishes the 2027 IRMAA brackets later in the fall.

What IRMAA is, in plain English

Most people on Medicare pay the standard Part B premium and whatever their Part D plan charges. But if the IRS reports your income above a set threshold, Social Security adds a surcharge on top of both. That's IRMAA.

A few key points:

• IRMAA is based on your modified adjusted gross income (MAGI) from your tax return two years ago. For 2027, that means your 2025 tax return.
• It applies to both Part B and Part D, even if you get your drug coverage through a Medicare Advantage plan.
• Social Security mails you a letter if IRMAA applies. The amount is usually pulled directly from your monthly Social Security benefit.

The IRMAA income thresholds

For 2026, the first IRMAA tier begins at income above $109,000 for a single filer (and above $218,000 for a married couple filing jointly), according to Medicare.gov. Below those amounts, you pay only the standard premiums.

From there, the surcharges step up in tiers as income rises. The highest tier applies to single filers with income at or above $500,000 (and married couples at or above $750,000). Each tier adds a set dollar amount to both your Part B and Part D premiums — the higher your income bracket, the larger the add-on.

CMS publishes the 2027 IRMAA brackets later in the fall, usually in November. Medicare.gov posts the full table under "Medicare costs" once it's released.

Why 2025 income matters for 2027

This two-year lookback trips up a lot of new retirees in El Paso County. You might be living on a modest fixed income today, but if 2025 included a big one-time event — selling a house, cashing out an IRA, taking a large Roth conversion, or receiving a severance — that income can push you into IRMAA territory for 2027.

The good news: if your income has since dropped because of a life-changing event, you can ask Social Security to reconsider. Qualifying events include:

• Marriage, divorce, or the death of a spouse
• You or your spouse stopping work or reducing hours
• Loss of income-producing property (not from your own decision to sell)
• Loss or reduction of certain pension income

You'd file Form SSA-44 with documentation. If approved, Social Security uses a more recent estimate of your income instead of your 2025 return.

How this fits with other 2027 Part D changes

IRMAA isn't the only Part D cost to watch for 2027. A few program-wide figures worth keeping in mind:

• The annual out-of-pocket cap for Part D is $2,100 in 2026 and $2,400 in 2027. Once you hit it, you pay nothing more for covered drugs for the rest of the year.
• The maximum Part D deductible is $615 for 2026 and $700 for 2027.
• The old "donut hole" coverage gap was eliminated in 2025. Part D now has three simpler phases: deductible, initial coverage, and catastrophic.
• The Medicare Prescription Payment Plan lets you spread your drug costs across the year in monthly installments at no added charge. It's optional — you have to opt in.

Even if you pay an IRMAA surcharge on Part D, these protections apply to you the same as everyone else.

What to do before December 7

The Annual Enrollment Period ends December 7, and the Medicare Advantage Open Enrollment Period runs January 1 through March 31. A few practical steps for Colorado Springs beneficiaries:

1. Check your 2025 tax return and see where your MAGI lands once the 2027 thresholds are released. 2. If you got an IRMAA determination letter and had a qualifying life change, look into Form SSA-44. 3. Use the Plan Finder at Medicare.gov to compare 2027 coverage based on your medications and pharmacies. Availability is set at the county level — Colorado Springs is in El Paso County, where 40 Medicare Advantage plans from 10 carriers are offered for 2027, alongside stand-alone Part D options. 4. If you need one-on-one help, Colorado's State Health Insurance Assistance Program (SHIP) offers free, unbiased counseling.