Medicare Part D

How Income Raises Medicare Part B and Part D Costs in Minneapolis

Minneapolis, MN — With Medicare's Annual Enrollment Period running through Dec. 7, thousands of Minneapolis residents are checking their 2027 coverage. But there's one detail many people miss until a letter arrives from Social Security: your income two years ago can raise what you pay for Medicare Part B and Part D in 2027.

This extra charge is called IRMAA — the Income-Related Monthly Adjustment Amount. Here's how it works, who it affects, and what to do if your income has dropped since then.

What IRMAA is, in plain English

Most people on Medicare pay the standard Part B premium, and their Part D drug premium is set by the plan they choose. But if your income is above a certain level, Medicare adds a surcharge on top of both. That surcharge is IRMAA.

Social Security decides whether you owe IRMAA using your modified adjusted gross income (MAGI) from two years earlier. So your 2027 IRMAA is based on your 2025 tax return.

If you owe it, you'll get a letter from the Social Security Administration explaining the amount and how it was calculated.

The income thresholds for 2026 (2027 pending)

For 2026, IRMAA kicks in above these income levels:

• Single filers: more than $109,000
• Married filing jointly: more than $218,000
• Married filing separately (lived with spouse): more than about $109,000, with steeper brackets

Above those first thresholds, there are several higher tiers. The more your income exceeds the threshold, the larger the surcharge on both Part B and Part D. If your income is at or below the first threshold, you don't pay IRMAA at all.

Because these numbers can shift each year, always confirm the current brackets on Medicare.gov under "Costs" before making decisions.

How IRMAA hits Part B and Part D differently

Part B: The surcharge is added to your monthly Part B premium and is usually pulled from your Social Security check.

Part D: This is the part that surprises people. Even though your Part D premium is set by your drug plan, IRMAA is a separate charge billed by Medicare — not by your plan. So you could pick a low-premium drug plan and still owe a Part D IRMAA bill each month if your income is above the threshold.

That's true whether your drug coverage comes through a standalone Part D plan or through a Medicare Advantage plan that includes drugs.

What if your income has gone down?

This is the most important thing to know: IRMAA is not permanent, and it's not always fair on the first pass. If you had a life-changing event that reduced your income, you can ask Social Security to recalculate.

Qualifying events include:

• Retirement or reduced work hours
• Loss of a pension
• Death of a spouse
• Divorce or marriage
• Loss of income-producing property (not by your choice)

To appeal, file Form SSA-44 ("Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event") with documentation. Many people in Minneapolis who retired in 2025 or 2026 may qualify to have their 2027 IRMAA reduced or removed — but only if they ask.

The bigger 2027 picture for Part D

Even with IRMAA in the mix, 2027 brings more changes to how prescription drug costs work:

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

IRMAA doesn't change any of that. It just changes what you pay in premiums.

What Minneapolis readers should check now

Minneapolis is in Hennepin County, where residents have a wide range of Part D and Medicare Advantage options during the Oct. 15 – Dec. 7 Annual Enrollment Period. If IRMAA affects you, keep these steps in mind while you compare:

1. Look at total monthly cost — plan premium plus any IRMAA surcharge. 2. If you retired recently, gather documents for an SSA-44 appeal. 3. Use the Plan Finder at Medicare.gov to compare drug plans by your actual medications. 4. If you miss AEP, remember Medicare Advantage Open Enrollment runs Jan. 1 – March 31 for switching MA plans.