Medicare Part D

Medicare IRMAA in 2026: Income Brackets Start at $109,000

Merrillville, Ind. — As Medicare's Annual Enrollment Period runs through Dec. 7, higher-income retirees in Northwest Indiana are getting a fresh look at something that often catches them by surprise: the income-related monthly adjustment amount, better known as IRMAA. For 2026, the surcharges on Part B and Part D premiums kick in once a single filer's income tops $109,000, or $218,000 for a couple filing jointly.

If that sounds like a lot of money to you, you're not alone — most people on Medicare never pay it. But for retirees who sold a business, cashed in investments, or took a large IRA withdrawal two years ago, the extra charge can come as a shock.

What IRMAA actually is

IRMAA stands for Income-Related Monthly Adjustment Amount. It is not a separate bill — it's an extra charge added on top of the standard Part B and Part D premiums for people whose incomes are above a certain level.

Social Security decides who pays IRMAA by looking at your modified adjusted gross income (MAGI) from two years earlier. So your 2026 surcharge is based on the tax return you filed for 2024.

About 8% of people with Medicare pay an IRMAA surcharge, according to CMS. Everyone else pays the standard premium.

The 2026 income brackets

For 2026, the first IRMAA tier starts when a single filer's MAGI is more than $109,000, or more than $218,000 for a married couple filing jointly. From there, the surcharge steps up through several higher tiers, with the top tier reaching incomes above $500,000 (single) or $750,000 (joint).

The exact dollar amount added to your Part B and Part D premiums depends on which tier you land in. Medicare.gov publishes the full chart each year, and it's worth pulling up before you make any big financial moves in retirement.

Two things worth remembering:

• The brackets apply separately to Part B and Part D. If you owe IRMAA, you'll see it on both.
• If you have Part D through a Medicare Advantage plan or a standalone drug plan, the Part D surcharge is paid directly to Medicare — not to your plan.

Why this matters locally

Merrillville is in Lake County, where thousands of residents are enrolled in Medicare. The county sits along the Illinois border, and many retirees here have pensions from steel, transportation, or public-sector work, plus Social Security and retirement account withdrawals. Add those up in a single year — especially the year you retire or take a large distribution — and it's easier than you'd think to cross an IRMAA threshold.

The good news: crossing a threshold in one year doesn't mean you're stuck paying the surcharge forever. IRMAA is recalculated every year based on the most recent tax return Social Security has on file.

When you can appeal

If you've had a "life-changing event" that reduced your income, you can ask Social Security to use more recent numbers instead of the two-year-old return. Qualifying events include:

• Retirement or reduced work hours
• Marriage, divorce, or the death of a spouse
• Loss of pension income
• Loss of income-producing property due to a disaster

To request a reconsideration, file Form SSA-44 with your local Social Security office. You'll need documentation of the event and an estimate of your new income.

Other 2026 numbers worth knowing

While you're planning, keep these program-level figures in mind for 2026:

• The Part D out-of-pocket cap is $2,100.
• The Part D maximum deductible is $615.
• The old coverage gap (the "donut hole") was eliminated in 2025, so Part D now has three phases instead of four.
• The Medicare Prescription Payment Plan lets you spread drug costs across the year in monthly installments if you choose.

None of these affect the IRMAA calculation directly, but together they shape what your total Medicare costs will look like next year.

Where to get help in Merrillville

For personalized answers, three resources are worth bookmarking:

• Medicare.gov — the official source for premium charts, IRMAA brackets, and plan comparisons.
• 1-800-MEDICARE (1-800-633-4227) — available 24/7 for general questions.
• Indiana SHIP (State Health Insurance Assistance Program) — free, unbiased counseling for Hoosiers on Medicare. You can reach Indiana SHIP at 1-800-452-4800.

A local SHIP counselor can walk you through an IRMAA notice, help you decide whether to file Form SSA-44, and answer questions about Part B and Part D without trying to sell you anything.