Medicare Part D

Medicare IRMAA surcharges on Part B and Part D in Fort Collins

FORT COLLINS, Colo. — As Medicare's Annual Enrollment Period runs through Dec. 7, higher-earning retirees along the Front Range are getting a fresh look at something that catches many people off guard: an income-based surcharge that can quietly raise what they pay for Part B and Part D in 2027.

The surcharge, called the Income-Related Monthly Adjustment Amount (IRMAA), is not a penalty. It's an extra amount tacked onto standard Medicare premiums when your reported income sits above certain thresholds. Here's what Fort Collins readers should know before finalizing coverage choices this fall.

What IRMAA is, in plain terms

Most people on Medicare pay the standard Part B premium and whatever their Part D drug plan charges. But if your income is above a set line, Social Security adds an extra monthly amount to both. That extra amount is IRMAA.

Two important things to remember:

• IRMAA is based on your modified adjusted gross income (MAGI) from your tax return two years earlier. For 2027 surcharges, Social Security looks at your 2025 return.
• The surcharge applies to both Part B and Part D, even if your Part D plan premium is low. The Part D piece is billed separately from your drug plan.

The 2027 income thresholds

For 2026, IRMAA begins when income tops $109,000 for a single filer (roughly double that for married couples filing jointly). Above that line, surcharges rise in tiers — the higher your income, the higher the add-on.

CMS publishes the 2027 IRMAA brackets later this fall, typically in November, alongside the Part B figures on Medicare.gov. If you're close to a threshold, even a small change in income — a Roth conversion, capital gains, a large RMD — can push you into the next bracket.

Why this matters right now

Annual Enrollment (Oct. 15 – Dec. 7) is when most people compare Part D and Medicare Advantage options for 2027. If you're subject to IRMAA, your true monthly cost is your plan premium plus the Part D surcharge Social Security bills you. That can change how one plan stacks up against another when you're budgeting.

A few program facts worth pairing with the IRMAA picture:

• Part D has an out-of-pocket cap on covered drugs of $2,100 in 2026 and $2,400 in 2027.
• The Part D deductible maxes out at $615 in 2026 and $700 in 2027.
• The old "donut hole" is gone; Part D now has three phases.
• The Medicare Prescription Payment Plan lets you spread drug costs across the year in monthly installments — helpful if a big prescription would otherwise hit early in the year.

How to check — and challenge — your IRMAA

Social Security mails a predetermination notice if you're going to owe IRMAA. Read it carefully. If your income has dropped since 2024 because of a life-changing event — retirement, a spouse's death, divorce, loss of pension income, or a work stoppage — you can ask for a reconsideration using Form SSA-44.

That form is the single most useful tool for recent retirees who left a higher-paying job. Many Fort Collins residents who retired in 2025 or 2026 qualify to have their surcharge recalculated using current income instead of their old tax return.

Planning around the thresholds

You can't change your 2025 tax return, but you can plan for future years. Some approaches worth discussing with a tax professional:

• Timing Roth conversions so income stays under a threshold.
• Bunching charitable giving through a qualified charitable distribution (QCD) from an IRA, which can reduce MAGI.
• Watching capital gains in years when you're close to a bracket.

None of this replaces personalized tax advice — it's just a reminder that IRMAA is planned for, not just reacted to.

Local context

Fort Collins is in Larimer County, where a broad mix of stand-alone Part D plans and Medicare Advantage plans with drug coverage were offered for 2026. The 2027 lineup is detailed in each plan's Annual Notice of Change and on Medicare.gov's Plan Finder. IRMAA rules apply the same way no matter which plan you pick — the surcharge is set by Social Security, not by any insurer.