Increased Medicare Contributions in 2025: IRMAA Tiers and Supplementary Costs for Parts B and D

As the cost of healthcare continues to rise, Medicare enrollees with higher incomes are bracing for an increase in their monthly premiums and Income-Related Monthly Adjustment Amount (IRMAA) surcharges in 2026.

IRMAA Surcharges and MAGI

Distributions from Roth IRA accounts do not count towards Modified Adjusted Gross Income (MAGI), which can help avoid the IRMAA. However, MAGI for IRMAA calculation includes tax-exempt interest from municipal bonds, income earned abroad that was excluded from gross income, and nontaxable income from U.S. territories.

IRMAA Brackets and Surcharges for 2026

The IRMAA income brackets for Medicare Parts B and D surcharges are adjusted slightly upward based on income levels from two years prior (i.e., 2024 tax returns). Although the precise 2026 IRMAA brackets are typically published by CMS in the fall of 2025, available information indicates a small increase in thresholds compared to 2025.

Here is a close baseline for the expected 2026 IRMAA brackets and surcharges:

| IRMAA Bracket | 2025 MAGI Thresholds (approximate, for 2026 expect ~1% increase) | Part B IRMAA Surcharge (2025) | Part D IRMAA Surcharge (2025) | |---------------|------------------------------------------------------------------|-------------------------------|-------------------------------| | Standard (no IRMAA) | Single ≤ $106,000; Married Filing Jointly ≤ $212,000 | $0 + base premium ($185 in 2025) | $0 + base premium (~$46.50 avg 2025) | | Bracket 1 | Single ≤ $133,000; Joint ≤ $266,000 | +$74.00 | +$13.70 | | Bracket 2 | Single ≤ $167,000; Joint ≤ $334,000 | +$184.50 | +$35.90 | | Bracket 3 | Single ≤ $200,000; Joint ≤ $400,000 | +$297.00 | +$59.40 | | Bracket 4 | Single < $500,000; Joint < $750,000 | +$409.40 | +$82.90 | | Bracket 5 (highest) | Single ≥ $500,000; Joint ≥ $750,000 | +$443.90 | +$85.80 |

(Exact 2026 brackets will be slightly higher, roughly by 1% on income thresholds and about 6% increase on Part D surcharges)

Part B and Part D Premiums for 2026

The 2026 Medicare Part B standard premium is projected to increase to about $206.50/month, up roughly 11.6% from 2025, and the IRMAA brackets are expected to rise on average 1.04%. The 2026 Medicare Part D base beneficiary premium is set at $38.99/month, reflecting a 6% maximum annual increase allowed by law.

Appealing IRMAA Decisions

If your request for a redetermination is denied, you can appeal the decision up to three additional levels: to the Office of Medicare Hearings and Appeals, to the Medicare Appeals Council, and finally to the federal district court where you live.

Paying the Part B Premium

There are four ways to pay the Part B premium: online, Medicare Easy Pay, mail, or bank's online bill payment service.

IRMAA as a "Cliff" Surcharge

The IRMAA is a "cliff" surcharge, meaning if your modified adjusted gross income exceeds the threshold by as little as a dollar, you will have to pay higher premiums.

Public sector retirees who received a raise might be concerned about the increase in benefits from the Social Security Fairness Act triggering the IRMAA in 2026 or 2027, but they will have to wait to find out if the increase is big enough.

Two-Year Lag Time in IRMAA Calculations

The IRMAA calculations have a two-year lag time. The IRMAA surcharge for 2025 is based on the modified adjusted gross income (MAGI) from 2023.

Late Payments and IRMAA

Medicare bills are due on the 25th of the month, and late payments may result in past due amounts on the next bill. If Social Security determines that you should pay an IRMAA, they will mail you a notice called an initial determination.

In sum, Medicare enrollees with higher incomes will see both higher base premiums and IRMAA surcharges for Parts B and D in 2026 due to inflation adjustments and rising healthcare costs. Final official 2026 IRMAA brackets and exact surcharge amounts will be confirmed by CMS in fall 2025.

Distributions from Roth IRA accounts do not affect Modified Adjusted Gross Income (MAGI), a crucial factor in determining Income-Related Monthly Adjustment Amount (IRMAA).
IRMAA brackets for Medicare Parts B and D surcharges are adjusted slightly every year, based on income levels from two years prior.
To avoid paying higher premiums due to the IRMAA "cliff" surcharge, it's essential to keep MAGI below the specified threshold.
High-earning Medicare enrollees may want to consider financial planning strategies, such as those in personal-finance and business, to manage the increased costs of healthcare and IRMAA surcharges. Additionally, understanding the Social Security Fairness Act's potential impact on IRMAA could be beneficial in the coming years.

Increased Medicare Contributions in 2025: IRMAA Tiers and Supplementary Costs for Parts B and D