Medicare Part D

2026 IRMAA Thresholds for Lafayette Medicare Beneficiaries

LAFAYETTE, Ind. — If your income has climbed in the past couple of years, a letter from Social Security this fall could catch you off guard. It's called an IRMAA notice, and for 2027 it will tell some higher-income beneficiaries they owe an extra monthly charge on top of their regular Medicare Part B and Part D premiums.

Here's a plain-language look at how these surcharges work, where the income lines fall, and what Lafayette-area readers can do if the numbers don't feel right. CMS publishes the 2027 IRMAA brackets later this fall, usually in November.

What IRMAA actually is

IRMAA stands for Income-Related Monthly Adjustment Amount. It's not a penalty and it's not a tax — it's an extra amount that higher-income people pay for Medicare Part B (doctor visits and outpatient care) and Part D (prescription drugs).

Most people on Medicare do not pay IRMAA. It only kicks in once your income crosses a certain line. Social Security decides who owes it, based on your tax return.

The 2027 income thresholds

For 2026, the IRMAA surcharges begin above $109,000 in income for a single filer, and above $218,000 for a married couple filing jointly. That's the first "step." From there, the brackets climb in tiers — the higher your income, the larger the surcharge on both Part B and Part D.

A few important details:

• Medicare uses your modified adjusted gross income (MAGI) — generally your AGI plus any tax-exempt interest.
• It looks at your tax return from two years earlier. So your 2027 IRMAA is based on your 2025 tax return.
• The exact dollar amounts for each bracket are published each fall by CMS. You can see the current table at medicare.gov.

If you're a dollar over a threshold, you land in that bracket — the surcharges are cliffs, not slopes. That's worth remembering if you're planning a Roth conversion or a big withdrawal.

How you'll pay it

The Part B surcharge is added to your Part B premium and, for most people, comes out of the Social Security check automatically.

The Part D surcharge works a little differently. Even though your drug plan premium is paid to a private insurance company, the IRMAA piece is billed separately by Medicare or withheld from Social Security. You'll pay it whether you're in a stand-alone Part D plan or a Medicare Advantage plan that includes drug coverage.

If your income has dropped, you can appeal

This is the part many people miss. If you had a life-changing event that lowered your income since that 2024 tax return, you can ask Social Security to recalculate. Qualifying events include:

• Retirement or reduced work hours
• Loss of a spouse
• Divorce
• Loss of pension income
• A settlement from a former employer

You'll file Form SSA-44 with documentation. It's free to file, and approvals are common when the paperwork is clean.

Why this matters in Lafayette right now

Fall is decision season. The Medicare Annual Enrollment Period runs October 15 through December 7, 2026, and it's when most people compare Part D and Medicare Advantage options for 2027. Lafayette is in Tippecanoe County, where beneficiaries can weigh stand-alone Part D and Medicare Advantage options at medicare.gov. The 2027 lineup is detailed in each plan's Annual Notice of Change and on Medicare.gov's Plan Finder.

Two Part D changes are worth knowing as you look at 2027 coverage:

• The Part D out-of-pocket cap is $2,100 in 2026 and $2,400 in 2027. Once your drug spending reaches that ceiling, you pay nothing for covered drugs the rest of the year.
• The Part D maximum deductible is $615 in 2026 and $700 in 2027.
• The old "donut hole" coverage gap is gone; Part D now has three phases.
• The Medicare Prescription Payment Plan lets you spread drug costs across the year in monthly installments instead of paying a big amount at the pharmacy counter.

IRMAA is separate from all of that — you'll still pay it if your income qualifies — but the drug-cost changes are the bigger story for most households.

A quick FAQ

Does IRMAA ever go away on its own? Yes. Because Medicare looks at a two-year-old tax return, a one-time income spike (say, selling a house) usually only affects you for one year. Once that return rolls off, your surcharge is recalculated.

I just got an IRMAA letter and I think it's wrong. What do I do? Call Social Security at 1-800-772-1213, or file Form SSA-44 if you've had a life-changing event. Bring proof — a retirement letter, a death certificate, whatever fits your situation.

Does IRMAA affect my Medigap or Medicare Advantage premium? No. It only adjusts Part B and Part D. Your Medigap or Medicare Advantage plan premium is set by the insurance company, not by your income.

Can I avoid IRMAA by choosing a certain plan? No. IRMAA is based on your income, not your plan choice. Switching plans during Annual Enrollment doesn't change whether you owe it.

Where to get answers you can trust

If you want to check your own situation, go straight to the source. CMS publishes the 2027 IRMAA brackets later this fall, typically in November:

• medicare.gov — official costs and IRMAA tables
• 1-800-MEDICARE (1-800-633-4227) — 24/7 help
• Indiana SHIP — free, unbiased Medicare counseling for Hoosiers, including one-on-one help in the Lafayette area. Call 1-800-452-4800 to find a local counselor.

IRMAA can feel intimidating the first time you see the letter, but it's a rules-based system. Once you know the thresholds and the appeal path, you can plan around it — and focus your Annual Enrollment attention on the coverage decisions that actually move the needle for your household.