Medicare Part D

Medicare IRMAA Income Lookback in West Jordan, Utah

WEST JORDAN, Utah — As Medicare's Annual Enrollment Period runs from October 15 through December 7, many people here are weighing their 2027 coverage and spotting something unexpected: a surcharge tied to their income from two years ago. It's called IRMAA — the Income-Related Monthly Adjustment Amount — and it can raise what you pay for both Part B (doctor visits and outpatient care) and Part D (prescription drugs).

What's happening this fall

If your income was higher than usual in 2025, this is the time to understand how Medicare will use that number for 2027, and what you can do about it before it catches you off guard.

How IRMAA works, in plain English

Most people pay the standard Part B premium. But if your income is above a certain level, Social Security adds a surcharge on top of it — and a separate one to your Part D drug plan premium.

Medicare uses your Modified Adjusted Gross Income (MAGI) from two years ago to decide. So your 2026 surcharges are based on your 2024 tax return. That includes wages, Social Security benefits, retirement account withdrawals, capital gains, and tax-exempt interest.

For 2026, IRMAA surcharges start when income is above:

• $109,000 for a single filer
• $218,000 for a married couple filing jointly

Below those thresholds, you pay only the standard premiums. Above them, the surcharge climbs in steps — the higher your income, the higher the add-on for both Part B and Part D.

Why this hits people by surprise

A one-time event in 2024 — selling a home, cashing out an investment, taking a large IRA distribution, or receiving a severance — can push you over a threshold for a single year. Even a few dollars over a bracket cutoff moves you into the next tier. That's the mistake we see most often: people don't realize a good financial year can quietly raise their Medicare costs two years later.

You'll usually find out through a letter from the Social Security Administration in late fall or early winter, telling you what your premiums will be for the coming year.

When you can appeal — and how

If your income has dropped since 2024, you may be able to ask Social Security to use more recent numbers instead. This is called requesting a "new initial determination," and it applies after certain life-changing events, including:

• Marriage, divorce, or the death of a spouse
• You or your spouse stopped working or reduced hours
• Loss of pension income
• Loss of income-producing property (not from ordinary market swings)

You file Form SSA-44 with proof — a signed statement from an employer, a death certificate, or similar documentation. If Social Security agrees, they'll recalculate your surcharge, sometimes eliminating it entirely.

What else is changing for 2027

Even if IRMAA doesn't apply to you, a couple of Part D changes are worth knowing about:

• The Part D out-of-pocket cap is $2,100 in 2026 and $2,400 in 2027. Once your drug spending hits that ceiling, you pay nothing for covered drugs the rest of the year.
• The Part D maximum deductible is $615 in 2026 and $700 in 2027.
• The old coverage gap ("donut hole") is gone as of 2025 — Part D now has three simpler phases.
• The Medicare Prescription Payment Plan lets you spread your drug costs into monthly installments across the year instead of paying big amounts at the pharmacy counter.

These apply regardless of income, though IRMAA still adds to your Part D premium if you're over the threshold.

What West Jordan residents should do now

West Jordan is in Salt Lake County, where Medicare beneficiaries choose between Original Medicare (with or without a stand-alone Part D plan) and Medicare Advantage plans offered by private insurers. Whichever path you take, IRMAA follows you — it's tied to you, not to the plan you pick.

A few steps before December 7:

1. Pull your recent tax returns — your 2024 return drives 2026 surcharges, and your 2025 return will drive 2027 surcharges. 2. If you're close to a bracket, talk with a tax professional about whether Roth conversions, capital gains timing, or charitable giving strategies could matter for future years. 3. If your income has since dropped because of a life-changing event, get Form SSA-44 ready. 4. Review your current Part D or Medicare Advantage drug coverage during Annual Enrollment — formularies and premiums change every year.