Medicare Part D
How income raises Medicare premiums for Schaumburg retirees
Schaumburg, Illinois — As Medicare's Annual Enrollment Period runs through Dec. 7, higher-income retirees in the northwest suburbs are getting a fresh look at something that catches many people off guard: the income-related surcharges that can quietly raise Part B and Part D premiums in 2027.
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Key takeaways
- Medicare's Annual Enrollment Period runs through Dec. 7, and it's a good time to check if income-related surcharges apply to you.
- IRMAA is an extra amount added to your standard Part B and Part D premiums if your income is above certain limits, and it is not a penalty or a tax.
- For 2026, IRMAA starts above $109,000 for single filers and $218,000 for married couples filing jointly, based on your 2024 tax return.
- If your income has dropped since 2024 due to retirement, a spouse's death, divorce, or similar life changes, you can file form SSA-44 with Social Security to ask for a lower surcharge.
The rules haven't changed dramatically, and the 2027 income thresholds will be published by CMS later this fall — but if your 2025 tax return pushed you over a line, you may already be paying more than a neighbor with identical coverage once the new figures land.
Here's what Schaumburg readers need to know before the enrollment window closes.
What IRMAA actually is
IRMAA stands for the Income-Related Monthly Adjustment Amount. It's not a penalty and it's not a tax — it's an extra amount added to your standard Medicare Part B and Part D premiums when your income is above a certain level.
Most people on Medicare pay only the standard Part B premium. But if your modified adjusted gross income (MAGI) is over the threshold, Social Security adds a surcharge on top. The same idea applies to Part D drug coverage, whether you have a stand-alone drug plan or drug coverage bundled inside a Medicare Advantage plan.
Only a small share of Medicare beneficiaries pay IRMAA. But when it hits, it can add up to hundreds of dollars per month.
The income thresholds for 2027
For 2026, IRMAA starts kicking in above $109,000 for a single filer and $218,000 for a married couple filing jointly, according to CMS.
A few important details:
- Medicare uses your tax return from two years ago. Your 2027 premiums will be based on your 2025 MAGI.
- Surcharges rise in tiers. The higher your income, the bigger the add-on for both Part B and Part D.
- Married filing separately has its own — and much tighter — set of thresholds.
- Both spouses on Medicare pay their own IRMAA if the household income crosses a tier.
You can see the current tier chart on Medicare.gov under "Costs."
How the Part D surcharge works in 2027
The Part D IRMAA is separate from the Part B surcharge. If you owe it, Social Security bills you directly — even though your drug plan premium itself is paid to a private insurer. You cannot avoid the Part D IRMAA by choosing a lower-premium drug plan; it's tied to your income, not to the plan.
This matters more than usual in 2027, because Part D continues to evolve:
- The out-of-pocket cap for covered drugs is $2,100 in 2026 ($2,400 in 2027) for the year.
- The maximum Part D deductible is $615 in 2026 and $700 in 2027.
- The old "donut hole" coverage gap is gone; Part D now has three phases instead of four.
- The Medicare Prescription Payment Plan lets you spread your drug costs across the calendar year in monthly installments, if that helps with cash flow.
None of those changes affect whether you owe IRMAA — but they do affect what your total drug spending looks like on top of any surcharge.
What to do if your income has dropped
One of the most useful — and least known — parts of the IRMAA rules is the life-changing event appeal.
If your income has dropped since 2024 because of retirement, the death of a spouse, divorce, reduced work hours, loss of a pension, or a similar event, you can ask Social Security to recalculate your surcharge using your more recent income. The form is SSA-44, and you'll need documentation of the event.
This is worth doing promptly. Many Schaumburg-area retirees who left full-time work in 2025 or 2026 may see a 2027 IRMAA notice based on their final high-earning year — and the appeal can bring it down.
Where local plan availability fits in
Schaumburg is in Cook County, where beneficiaries have a wide range of Medicare Advantage and stand-alone Part D options during Annual Enrollment. IRMAA applies the same way no matter which plan you pick — it's an income rule, not a plan rule — but the plan you choose still affects your base premium, drug coverage, and network.
If you're comparing coverage this fall, it's worth checking whether your prescriptions and doctors are covered before focusing on premium alone.
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 Cook County
(MA penetration in Cook 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
IRMAA income brackets for 2026
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 will be based on your 2025 tax return. CMS publishes the 2027 brackets and surcharge amounts later in the fall, typically in November.
| 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 come out of my Social Security check?
I just got an IRMAA letter. Is it final?
If I switch drug plans during AEP, will my IRMAA change?
- CMS — Medicare costs & IRMAA (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.