Medicare Part D

Medicare IRMAA surcharges facing Sterling Heights earners

Sterling Heights, Mich. — If your income has climbed in recent years, a letter from Social Security this fall may catch you off guard. For 2026, Medicare's income-related surcharges — known as IRMAA — will again add to what higher earners pay for Part B and Part D. The thresholds start at $109,000 in income for a single filer and $218,000 for a married couple filing jointly, and the extra amount grows as income rises.

Here is a plain-English guide to how IRMAA works, who it touches, and what Sterling Heights residents can do if a life change has lowered their income.

What IRMAA actually is

IRMAA stands for "Income-Related Monthly Adjustment Amount." It is not a separate bill or a penalty. It is an extra charge added on top of the standard Part B premium and, for people enrolled in Part D drug coverage, on top of their Part D premium.

Most people on Medicare pay the standard Part B premium and no Part D surcharge. Only beneficiaries whose income is above the thresholds pay IRMAA. According to Medicare.gov, roughly 8% of Part B enrollees fall into this group.

How Social Security decides

Social Security uses your modified adjusted gross income (MAGI) from your tax return two years earlier to set your 2027 surcharge. That means your 2027 IRMAA is based on the income you reported on your 2025 tax return.

MAGI includes your adjusted gross income plus any tax-exempt interest. One-time events — selling a home, taking a large IRA withdrawal, or cashing in stock — can push a household above a bracket for a single year.

The IRMAA income thresholds

IRMAA is tiered. Cross a threshold by even one dollar and you land in the next bracket for the full year. CMS publishes the 2027 brackets later this fall, usually in November, alongside the Part B figures. For 2026, the tiers begin at:

• Single filers: MAGI above $109,000
• Married filing jointly: MAGI above $218,000
• Married filing separately: a much lower threshold, generally around $106,000

From there, the brackets step up through several higher tiers, with the top tier hitting single filers with MAGI at or above roughly $500,000 and joint filers at or above $750,000. Each step raises both the Part B and the Part D surcharge. For exact dollar amounts at each tier, see the "Medicare costs" page at Medicare.gov, which CMS updates annually.

Part B and Part D — two separate add-ons

If you owe IRMAA, you generally owe it on both Part B and Part D, even if your Part D plan's base premium is low. The Part B surcharge is deducted from your Social Security check (or billed directly). The Part D surcharge is billed separately by Medicare — it does not go to your drug plan.

Worth knowing for 2027: the $2,400 out-of-pocket cap on Part D drug costs applies to everyone with Part D, including people paying IRMAA. The Medicare Prescription Payment Plan, which lets you spread drug costs across the year in monthly installments, is also available regardless of income.

How to decide what to do if you get an IRMAA letter

If Social Security sends you an "Initial IRMAA Determination" notice, do not ignore it. Read it carefully and consider these steps:

1. Check the income year they used. The letter will cite a specific tax year. Confirm it matches what you filed.

2. Ask whether a "life-changing event" applies. Social Security allows you to request a reduction if your income has dropped because of:

• Marriage, divorce, or the death of a spouse
• You or a spouse stopping work or cutting hours
• Loss of income-producing property (not from ordinary market losses)
• Loss or reduction of a pension
• A settlement from a former employer

To ask for a review, file Form SSA-44 with documentation. There is no fee.

3. If the numbers are simply wrong, you have the right to appeal (a "reconsideration") within 60 days of the notice.

4. Plan ahead for one-time income spikes. If you know 2025 or 2026 included an unusually large Roth conversion or property sale, expect a temporary IRMAA bump — and know it typically resolves the next year when income returns to normal.

Local help in Sterling Heights

Sterling Heights is in Macomb County, where residents can get free, unbiased Medicare counseling through Michigan's SHIP program, called MMAP (Michigan Medicare/Medicaid Assistance Program). Counselors can walk you through an IRMAA notice, help fill out Form SSA-44, and explain how the surcharge interacts with the rest of your coverage. MMAP counseling is free and does not sell insurance.

The Medicare Annual Enrollment Period runs October 15 through December 7, and Medicare Advantage Open Enrollment runs January 1 through March 31. IRMAA is separate from those windows — you can request a life-change review with Social Security at any time.