Medicare Part D

IRMAA and Medicare Part B and D Costs in Lakewood

LAKEWOOD, Colo. — As the Oct. 15 start of Medicare's Annual Enrollment Period approaches, one detail is catching many local retirees off guard: what you earned two years ago can raise what you pay for Medicare in 2027. It's called IRMAA — the Income-Related Monthly Adjustment Amount — and it applies to both Part B (doctor visits and outpatient care) and Part D (prescription drugs).

Here's a plain-language guide to how the income brackets work, who they affect, and what Lakewood residents can do if their income has changed.

What IRMAA is, in plain English

Most people pay the standard Part B premium and whatever their Part D plan charges. But if your income is above a certain level, Medicare adds a monthly surcharge on top of both. That extra amount is IRMAA.

Two important things to know:

• IRMAA is set by the Social Security Administration based on your most recent tax return on file — usually your 2025 return for 2027 costs.
• The surcharge is billed monthly. For Part B, it's added to your premium. For Part D, it's charged separately by Medicare, even if your drug plan itself is inexpensive.

The income thresholds for 2027

For 2026, IRMAA begins when your modified adjusted gross income (MAGI) is above:

• $109,000 for a single filer
• $218,000 for a married couple filing jointly

From there, the surcharge steps up through several brackets. The higher your income, the higher the add-on for both Part B and Part D. Married people who file separately have their own, tighter schedule.

The exact dollar amounts for each bracket are published each fall by CMS. You can see the current chart at Medicare.gov's costs page.

Why this matters more heading into 2027

Two changes make the income question worth revisiting as you look at 2027 coverage:

• The Part D out-of-pocket cap is $2,100 in 2026 and $2,400 in 2027. That's a real ceiling on what you'll pay for covered drugs at the pharmacy.
• The Part D deductible can be as high as $615, and the old "donut hole" coverage gap is gone as of 2025. Drug costs now move through three phases instead of four.

If you're subject to IRMAA, the Part D surcharge is added to your monthly bill even though your total drug spending is capped. So high-income enrollees still benefit from the cap — they just pay a bit more each month to get there.

There's also the Medicare Prescription Payment Plan, an optional program that lets you spread your out-of-pocket drug costs across the calendar year in monthly installments instead of paying big amounts at the pharmacy counter. It doesn't lower what you owe, but it can smooth the cash flow.

If your income has dropped, you can appeal

This is the part many people miss. If you had a "life-changing event" that reduced your income, you can ask Social Security to recalculate your IRMAA using more recent numbers. Qualifying events include:

• Retirement or reduced work hours
• Loss of a spouse
• Divorce
• Loss of pension income
• A one-time event (like selling property) that inflated a past year's income

You file Form SSA-44 with documentation. If approved, your surcharge is adjusted going forward. For Lakewood residents, the Denver-area Social Security offices handle these requests, and you can also start the process by calling 1-800-772-1213.

Local context for Lakewood

Lakewood is in Jefferson County, where Medicare beneficiaries choose between Original Medicare (with or without a standalone Part D drug plan) and Medicare Advantage. IRMAA applies the same way in both paths — it's tied to Part B and Part D, not to any particular plan or carrier. So switching plans during Annual Enrollment (Oct. 15 – Dec. 7) or the Medicare Advantage Open Enrollment Period (Jan. 1 – March 31) won't change whether IRMAA applies to you. Only your income can do that.

If you'd like unbiased, one-on-one help sorting through your options, Colorado's State Health Insurance Assistance Program (SHIP) offers free counseling.