Medicare Part D
Germantown Medicare Part B & D income costs 2027
Germantown, Maryland — As Medicare's Annual Enrollment Period runs through Dec. 7, higher-earning retirees in Montgomery County are getting a fresh reminder that income — not just the plan you pick — helps set what you pay for Part B and Part D in 2027.
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Key takeaways
- Medicare's Annual Enrollment Period runs through Dec. 7, and income can affect what you pay for Part B and Part D in 2027.
- IRMAA is a surcharge, not a penalty, that gets added to your Part B premium and, if you have drug coverage, your Part D premium when your income is above a set level.
- Social Security typically uses your 2025 tax return's modified adjusted gross income to decide your 2027 IRMAA, and there are five income tiers where higher income means a higher surcharge.
- If a life-changing event like retirement, a spouse's death, divorce, or a business sale lowered your income, you can file Form SSA-44 with documentation to ask Social Security to use more recent income instead.
The extra charge is called IRMAA, short for the Income-Related Monthly Adjustment Amount. It's added to your standard Part B premium and, if you have drug coverage, to your Part D premium too. Most people don't pay it. But if your income crossed a threshold two years ago, the Social Security Administration may send you a letter this fall or winter with an adjusted amount for 2027.
Here's a plain-English look at how it works and what's new for 2027.
What IRMAA is, in plain terms
IRMAA is not a penalty. It's a surcharge that Medicare adds to Part B and Part D premiums when your income is above a set level. Social Security decides whether it applies by looking at your most recent tax return on file — usually your 2025 return for 2027 premiums. That two-year lookback trips up a lot of people, especially those who recently retired, sold a home, or took a large one-time withdrawal from a retirement account.
If IRMAA applies to you, the amount is added to your Part B premium (typically deducted from your Social Security check) and billed separately or through your plan for Part D.
The 2026 income thresholds
For 2026, IRMAA begins when income on your 2024 tax return is above:
- $109,000 for someone who files as single
- $218,000 for a married couple filing jointly
Above those lines, there are five income tiers. The higher your income, the higher the surcharge on both Part B and Part D. Married people who file separately have their own, tighter set of rules.
"Income" here means your modified adjusted gross income (MAGI) — essentially your adjusted gross income plus any tax-exempt interest. Capital gains, Roth conversions, and required minimum distributions all count.
Part D changes worth knowing about
Even if IRMAA doesn't apply to you, Part D itself looks different in 2027:
- An annual out-of-pocket cap on covered prescription drugs of $2,100 in 2026 and $2,400 in 2027. Once you hit it, you pay nothing more for the rest of the year on covered drugs.
- A maximum deductible of $615 in 2026 and $700 in 2027, though individual plans can set theirs lower.
- The coverage gap ("donut hole") is gone. Since 2025, Part D has just three phases: deductible, initial coverage, and catastrophic.
- The Medicare Prescription Payment Plan is available to anyone with Part D. It lets you spread your drug costs across the calendar year in monthly installments instead of paying a big bill at the pharmacy counter. It doesn't lower what you owe — it just smooths it out.
What to do if your income has dropped
If you had a "life-changing event" — retirement, the death of a spouse, divorce, loss of pension income, or the sale of a business — you can ask Social Security to reconsider your IRMAA using more recent income.
You do this by filing Form SSA-44 with documentation. It's one of the most under-used tools in Medicare. If your 2024 income looked high because of a one-time event that won't repeat, it's worth the paperwork.
Enrollment dates to keep on the calendar
- Medicare Annual Enrollment Period: October 15 – December 7, 2026. This is when most people can join, drop, or change a Part D or Medicare Advantage plan for 2027.
- Medicare Advantage Open Enrollment: January 1 – March 31. If you're already in a Medicare Advantage plan, you can switch to another one or return to Original Medicare during this window.
Germantown is in Montgomery County, where several Medicare Advantage and stand-alone Part D plans are offered each year. Availability and plan details are set at the county level, so two neighbors in the same ZIP code generally see the same options. The 2027 lineup is detailed in each plan's Annual Notice of Change and on Medicare.gov's Plan Finder. The 2027 lineup is detailed in each plan's Annual Notice of Change and on Medicare.gov's Plan Finder.
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 Montgomery County
(MA penetration in Montgomery 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 is based on your 2025 tax return. CMS publishes the 2027 brackets and surcharge amounts later in the fall; the figures shown below are for 2026.
| 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
Why is Medicare using my income from two years ago?
Does IRMAA ever go away on its own?
I have a Medicare Advantage plan. Do I still owe IRMAA?
- CMS — Medicare costs & IRMAA (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.