Medicare Part D
Why 2025 Returns Affect 2027 Medicare in Jeffersontown
Jeffersontown, Ky. — With the Medicare Annual Enrollment Period running through Dec. 7, folks across Jefferson County are looking at their 2027 coverage — and some are surprised to learn that what they earned two years ago can still shape what they pay next year. If your income crossed a certain line on your 2025 tax return, Medicare may add a surcharge to your Part B and Part D premiums in 2027. Here is how that works, in plain language.
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Click to call 855-729-3240Key takeaways
- Medicare's Annual Enrollment Period runs through Dec. 7, and 2027 Part B and Part D premiums will be based on income reported on your 2025 tax return.
- If your 2024 modified adjusted gross income was above about $109,000 (single) or $218,000 (joint), you may owe an extra IRMAA charge on top of your standard premiums.
- If your income has since dropped due to a life-changing event, you can file Form SSA-44 with documentation to ask Social Security to recalculate your surcharge.
- Part D also has a $2,400 out-of-pocket cap in 2027, and a Prescription Payment Plan option may help spread out high drug costs.
What IRMAA actually is
IRMAA stands for the Income-Related Monthly Adjustment Amount. It is an extra charge added to your standard Part B premium and, if you have drug coverage, your Part D premium. It is not a penalty and it is not tied to your health — it is tied only to your reported income.
Social Security handles the billing. If you owe IRMAA, you will get a letter explaining the amount and how the decision was made. Most people on Medicare do not pay IRMAA at all. It only kicks in above set income thresholds.
The 2026 income thresholds
For 2026, IRMAA starts when your 2024 modified adjusted gross income (MAGI) was above:
- $109,000 for a single filer
- $218,000 for a married couple filing jointly
Below those numbers, you pay the standard Part B premium and whatever your Part D plan charges — no surcharge. Above them, the surcharge grows in tiers, with the highest tier reserved for the top income brackets. The full 2027 tier chart will be posted on Medicare.gov under "Costs" once CMS releases it.
One important note: Medicare looks back two years. Your 2027 premiums will be based on the tax return you filed in 2026 for tax year 2025.
Why the two-year lookback trips people up
This is the part that catches Jeffersontown retirees off guard every year. A one-time event in 2025 — selling a house, cashing in an investment, taking a large IRA withdrawal, or receiving a severance package — can bump your income into IRMAA territory for 2027, even if you are living on much less now.
The good news: if your income has dropped because of a specific "life-changing event," you can ask Social Security to reconsider. Qualifying events include:
- Marriage, divorce, or the death of a spouse
- Stopping or reducing work (retirement)
- Loss of income-producing property
- Loss or reduction of certain pensions
- An employer settlement payment
You file Form SSA-44 with documentation. If approved, Social Security recalculates your surcharge using your more recent income.
How Part D fits in for 2027
Even if you avoid the IRMAA surcharge, 2027 brings real changes to Part D worth knowing about:
- The out-of-pocket cap for covered drugs is $2,100 in 2026 and $2,400 in 2027. Once you hit it, you pay nothing more for covered prescriptions the rest of the year.
- The maximum Part D deductible is $615 in 2026 and $700 in 2027, though many plans set theirs lower.
- The old coverage gap ("donut hole") is gone as of 2025. Part D now has three phases: deductible, initial coverage, and catastrophic.
- The Medicare Prescription Payment Plan lets you spread your drug costs into monthly installments across the year instead of paying big amounts at the pharmacy counter. It is optional and free to join.
If you owe a Part D IRMAA, it is billed separately from your plan premium — usually taken from your Social Security check.
What to check before Dec. 7
Jeffersontown is in Jefferson County, where residents have a wide range of stand-alone Part D plans and Medicare Advantage plans with drug coverage to compare during Annual Enrollment. A few practical steps:
1. Look at last year's tax return. If your 2024 MAGI was near $109,000 (single) or $218,000 (joint), IRMAA may apply. Plan for it in your 2026 budget. 2. Compare drug plans on your actual medication list. The new cap ($2,100 in 2026, $2,400 in 2027) changes the math on which plan works best for people with high drug costs. 3. Ask about the payment plan. If a single prescription would blow through your deductible in January, the Prescription Payment Plan may smooth that out. 4. If your income has dropped, gather documents for Form SSA-44 now so you are ready to file.
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 Jefferson County
(MA penetration in Jefferson 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
2026 IRMAA income brackets
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.
| 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 ever go away on its own?
I'm still working and have employer coverage. Do I still owe IRMAA?
Can I appeal IRMAA if I disagree with the amount?
- CMS — Medicare costs & IRMAA (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.