Medicare Part D

Medicare IRMAA Surcharges & 2027 Thresholds in Derry

DERRY, N.H. — As Medicare's Annual Enrollment Period runs through Dec. 7, higher-income retirees in Rockingham County are looking closely at one line item that often surprises them: the income-related monthly adjustment amount, better known as IRMAA. For 2027, the income thresholds that trigger these surcharges on Part B and Part D will be published by CMS later this fall, and knowing where you land can help you plan the year ahead.

What IRMAA Is, in Plain English

IRMAA stands for Income-Related Monthly Adjustment Amount. It's an extra amount that people with higher incomes pay on top of the standard Medicare Part B premium and their Part D drug plan premium.

You don't apply for IRMAA and you can't opt out of it. The Social Security Administration decides who owes it, based on tax data from the IRS. If you owe it, you'll get a letter explaining the amount and how to appeal.

One important quirk: IRMAA looks back two years. Your 2027 surcharge will be based on the modified adjusted gross income (MAGI) reported on your 2025 tax return.

The 2027 Income Thresholds

For 2026, IRMAA begins for single filers with a modified adjusted gross income above $109,000, and for married couples filing jointly above $218,000. From there, the surcharge climbs through several brackets — the higher your income, the higher the add-on to both Part B and Part D.

A few things to remember:

• The brackets are indexed and can change each year.
• Married couples who file separately have their own, tighter set of rules.
• The Part D surcharge is paid in addition to whatever your drug plan's own premium happens to be.

The 2027 bracket-by-bracket figures are expected from CMS later this fall; check the "Costs" pages at Medicare.gov, which are updated each fall.

Why the 2027 Numbers Matter Right Now

This is the season when Medicare beneficiaries in Derry are reviewing coverage during the Annual Enrollment Period (Oct. 15 – Dec. 7, 2026). If your income has been near an IRMAA threshold, small choices — like a large Roth conversion, a capital gain, or an unusually big required minimum distribution in 2025 — could push you into a higher bracket for 2027.

You can't change 2024 anymore, but you can:

• Confirm the notice you receive from Social Security is accurate.
• Plan 2026 and 2027 income with these thresholds in mind, since those years drive future IRMAA.
• Talk with a tax professional before making large withdrawals late in the year.

When You Can Appeal

IRMAA isn't always final. Social Security allows an appeal — formally called a "Life-Changing Event" request — if certain events have reduced your income since the tax year they're using. Qualifying events include:

• Marriage, divorce, or the death of a spouse
• You or your spouse stopped working or reduced hours (retirement is the most common reason)
• Loss of pension income
• Loss of income-producing property due to a disaster or other event outside your control

You'll use Form SSA-44 and attach proof, such as a letter from a former employer or a death certificate. If your appeal is approved, your surcharge is adjusted going forward.

What's Also Changing in 2027

IRMAA is only one piece of the 2027 picture. A few other program-level facts worth knowing as you review coverage:

• Part D out-of-pocket cap: $2,100 in 2026 and $2,400 in 2027. Once you hit that, you pay nothing more for covered drugs the rest of the calendar year.
• Part D maximum deductible: $615 in 2026 and $700 in 2027.
• The old coverage gap ("donut hole") is gone — Part D now has three phases instead of four.
• The Medicare Prescription Payment Plan lets you spread your out-of-pocket drug costs across the calendar year in monthly installments instead of paying at the pharmacy counter. It's optional and free to join.

For plan choices themselves, Derry sits in Rockingham County. The 2027 lineup of Medicare Advantage and stand-alone Part D options is detailed in each plan's Annual Notice of Change and can be reviewed side by side using the Plan Finder tool on Medicare.gov.