Medicare Part D

How IRMAA raises Medicare premiums for Sherman retirees

SHERMAN, Texas — As Medicare's Annual Enrollment Period runs through Dec. 7, higher-income retirees in Grayson County are taking a second look at something that catches many people off guard: the income-related surcharge that can raise Part B and Part D premiums in 2027. If your income is above a certain line, Medicare adds an extra monthly charge on top of the standard premium — and the amount is set by what you reported on your tax return two years ago.

Here's what that means for Sherman residents planning ahead this fall.

What IRMAA is, in plain English

IRMAA stands for the Income-Related Monthly Adjustment Amount. It's an extra charge added to your Medicare Part B premium and, separately, to your Part D drug plan premium. Most people don't pay it — only about the top 8% of Medicare enrollees do. But if you cross the income threshold, the surcharge is automatic. You don't get a bill from your plan; Social Security takes it out of your check or bills you directly.

The 2027 income thresholds

For 2026, the first IRMAA tier kicks in when your modified adjusted gross income (MAGI) is above:

• $109,000 for someone filing as single, head of household, or qualifying surviving spouse.
• $218,000 for a married couple filing jointly.
• $109,000 for someone married but filing separately who lived with their spouse (this group hits IRMAA very quickly).

From there, the surcharge rises in steps. There are five income brackets in total, and the highest tier applies to single filers with MAGI at or above $500,000 (or $750,000 for joint filers). The higher your bracket, the higher both your Part B and Part D surcharges.

The exact dollar amounts for each bracket are published each year by Medicare at Medicare.gov under "Costs."

Why the IRS looks two years back

Social Security will determine your 2027 IRMAA using your 2025 federal tax return, because that's the most recent return the IRS will have finalized. So if you had a strong income year in 2025 — maybe you sold a house in Sherman, took a large IRA withdrawal, or converted a traditional IRA to a Roth — that could push you into IRMAA territory for 2027, even if your income has since dropped.

If that feels unfair, there's a fix.

When you can appeal

If you've had a life-changing event that lowered your income, you can ask Social Security to use more recent figures. Qualifying events include:

• Retirement or reduced work hours
• Marriage, divorce, or the death of a spouse
• Loss of pension income
• Loss of income-producing property (not from a sale)

The form to file is SSA-44, "Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event." You can download it at ssa.gov, attach documentation, and mail or drop it off at a Social Security office. There's a field office in Sherman that serves Grayson County.

How this ties into your enrollment choices

IRMAA doesn't change which plans you can choose, and it doesn't affect the standard Medicare rules — the 2026 Part D out-of-pocket cap is still $2,100, and the maximum Part D deductible is $615 regardless of your income. The coverage gap (the old "donut hole") is gone, replaced by three simpler payment phases. And anyone with high drug costs can spread payments over the year through the optional Medicare Prescription Payment Plan.

But if you're near an IRMAA threshold, small tax-planning decisions — the timing of Roth conversions, capital gains, or required minimum distributions — can matter a lot. Some Sherman-area retirees work with a tax professional in the fall specifically to avoid crossing a line by a few hundred dollars.

Where to get help in Sherman

Sherman is in Grayson County, where residents have access to free one-on-one Medicare counseling through the Texas Health Information, Counseling and Advocacy Program (HICAP), the state's SHIP. Counselors don't sell anything and don't work on commission. They can walk you through your Part B and Part D options, explain your IRMAA notice, and help you decide whether an SSA-44 appeal makes sense.

You can also compare Part D and Medicare Advantage plans directly at Medicare.gov/plan-compare, or call 1-800-MEDICARE (1-800-633-4227), available 24/7.