Medicare Part D
Medicare Surcharge Thresholds in Chattanooga, TN
CHATTANOOGA — As the Medicare Annual Enrollment Period runs through Dec. 7, many people here are getting a first look at what their 2027 premiums could be. For most, the standard Part B premium applies. But for retirees with higher incomes, a surcharge called IRMAA — the Income-Related Monthly Adjustment Amount — can quietly add hundreds of dollars a month to what Medicare costs.
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Click to call 855-729-3240Key takeaways
- IRMAA is an extra charge added to Part B and Part D premiums for people with higher incomes, on top of the standard premium.
- Social Security uses your 2025 tax return to decide your 2027 IRMAA surcharge, so a big one-time income event that year could affect your premium now.
- If your income has dropped since 2025 due to retirement, divorce, or losing a spouse, you can file Form SSA-44 to ask Social Security to recalculate and possibly lower or remove the surcharge.
- For 2027, Part D includes a $2,400 out-of-pocket cap, a maximum deductible of $700, no coverage gap "donut hole," and an option to spread drug costs into monthly payments at no extra charge.
Higher earners will pay more for Part B and Part D in 2027
If you got a letter from Social Security this fall about your 2027 premium, IRMAA is likely the reason. Here is how it works, and what the current thresholds mean for you.
What IRMAA is, in plain English
IRMAA is not a separate bill. It is an extra amount added to your monthly Part B premium and your Part D drug plan premium if your income is above certain limits. The Social Security Administration decides who pays it, using tax return information from the IRS.
For 2027 premiums, Social Security looks back at your 2025 tax return. That two-year lookback catches a lot of people off guard, especially those who recently retired, sold a home, or took a large IRA withdrawal.
The 2027 income thresholds
For 2026, IRMAA begins when your 2024 modified adjusted gross income (MAGI) was more than:
- $109,000 for a single filer, or
- $218,000 for a married couple filing jointly.
Income at or below those amounts means you pay only the standard Part B premium and your regular Part D plan premium — no surcharge.
Above those thresholds, IRMAA is applied in tiers. The higher your income, the higher the surcharge. The top tier kicks in at very high incomes (roughly $500,000 for singles and $750,000 for couples). Exact 2026 tier amounts are posted on Medicare.gov under "Costs."
Married people who filed separately have their own, much tighter thresholds and should check the CMS chart directly.
How the surcharge is charged
The Part B surcharge is added to your monthly Part B premium and usually taken out of your Social Security check. The Part D surcharge is billed separately by Medicare, even though your drug plan premium itself is paid to the private plan. Two bills, one income determination.
This applies whether you have Original Medicare with a stand-alone drug plan, or a Medicare Advantage plan that includes drug coverage. IRMAA is tied to you, not to the plan you choose.
What to do if your income has dropped
If your 2024 income was unusually high but your situation has changed since — you retired, lost a spouse, got divorced, stopped working, or lost a pension — you can ask Social Security to recalculate. This is called a life-changing event request, and it uses Form SSA-44.
You will need documentation (a retirement letter, a death certificate, a divorce decree). If Social Security agrees, they will lower or drop the surcharge going forward.
What is not changing — and what is
Even with IRMAA, some 2026 news is welcome. Part D has a new $2,100 out-of-pocket cap on covered prescriptions, up from $2,000 in 2025. The maximum Part D deductible is $615. The old "donut hole" coverage gap is gone, replaced by a simpler three-phase structure. And the Medicare Prescription Payment Plan lets anyone with Part D spread drug costs across the year in monthly installments, at no extra charge.
Chattanooga is in Hamilton County, where 58 Medicare Advantage plans from 11 carriers are offered for 2027, down from 65 plans and 12 carriers in 2026. IRMAA rules apply the same way no matter which plan you pick, so choose based on coverage — the surcharge follows your income, not your plan.
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 Hamilton County
(MA penetration in Hamilton 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 (2027 figures pending) (2027 figures pending)
If your income is above a threshold, you pay an income-related surcharge (IRMAA) on top of your Part B and Part D premiums. The 2027 brackets have not yet been published; the figures below are the 2026 brackets, based on your 2024 tax return. CMS publishes the 2027 brackets 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
Q: I just got a letter saying I owe IRMAA. Can I appeal?
Q: Does IRMAA go away if my income drops later?
Q: I have a Medicare Advantage plan. Do I still pay Part B IRMAA?
- CMS — Medicare costs & IRMAA (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.