Medicare Part D

Hendersonville TN: Income & 2027 Medicare Costs

Hendersonville, Tennessee — If you filed a healthy tax return two years ago, your Medicare mail this fall may contain a surprise. The Social Security Administration will set 2027 income-related surcharges once CMS publishes the new figures later this fall, and the thresholds shift most years. Here is what higher-income retirees in and around Hendersonville need to know before the Annual Enrollment Period closes on December 7.

What IRMAA actually is

IRMAA stands for the Income-Related Monthly Adjustment Amount. It is not a penalty, and it is not a separate bill from your Medicare Advantage or Part D plan. It is an extra amount added to your standard Part B premium and, if you have drug coverage, to your Part D premium. Higher earners pay it; most people do not.

Social Security determines whether you owe IRMAA by looking at your Modified Adjusted Gross Income (MAGI) from your tax return two years back. So your 2027 surcharge will be based on the income you reported for 2025.

The 2026 income thresholds (2027 brackets pending) (2027 brackets pending)

For 2026, the first IRMAA tier begins above $109,000 for a single filer and above $218,000 for a married couple filing jointly, according to CMS. If your income is at or below those numbers, you pay only the standard Part B premium and whatever your Part D plan charges — no surcharge.

Above those thresholds, IRMAA is applied in five tiers. Each tier adds a set dollar amount to both your Part B premium and your Part D premium. The highest tier applies to single filers with MAGI at or above $500,000 and joint filers at or above $750,000.

A few important details:

• Married and filing separately? A different, compressed set of brackets applies to you.
• Cross a threshold by even one dollar and the full tier kicks in — there is no gradual phase-in.
• IRMAA is recalculated every year, so a one-time income spike (like selling a home) may only affect you for one year.

How you get the bill

If you already collect Social Security, the Part B surcharge is deducted from your monthly benefit. The Part D surcharge is billed separately — even though your plan collects your regular Part D premium, the IRMAA portion is paid to Medicare directly. Most people pay it through automatic deduction from Social Security; others get a quarterly bill from the Centers for Medicare & Medicaid Services.

You will receive a "predetermination notice" from Social Security explaining how the amount was calculated and how to respond.

When you can appeal

If your income has dropped since 2024, you may qualify to have IRMAA reduced or removed. Social Security calls this a "life-changing event" reconsideration. Qualifying events include:

• Retirement or reduced work hours
• Marriage, divorce, or the death of a spouse
• Loss of a pension or income-producing property
• An employer settlement payment

You file Form SSA-44 and attach proof. You do not have to wait for a later year's brackets — you can request the review as soon as the event happens.

How this fits into your fall decisions

Hendersonville is in Sumner County, where retirees have a wide range of Medicare Advantage and stand-alone Part D options to compare during the Annual Enrollment Period (October 15 – December 7). IRMAA does not change based on which plan you pick — it is tied to your income, not your plan choice — but it does affect your total monthly Medicare cost, so it is worth factoring in.

Looking ahead to 2027: the Part D out-of-pocket cap rises to $2,400, the maximum Part D deductible is $700, and the coverage gap ("donut hole") remains eliminated. If drug costs are a concern, ask about the Medicare Prescription Payment Plan, which lets you spread out-of-pocket drug spending across the calendar year in monthly installments.