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Social Security payments may have risen 2.8 percent in 2026 thanks to the annual Cost-of-Living Adjustment (COLA), but because of the Income-Related Monthly Adjustment Amount (IRMAA), extra fees have been added to Medicare Part B and Part D premium costs, and experts are warning that seniors might not feel the effects of the extra money. To learn more about this shift, including how much money Americans could be losing each month, keep reading.
Initially enacted as a part of the Medicare Modernization Act of 2003, the IRMAA now serves as a way to equal out the cost of the government-funded healthcare program. It adds a surcharge to Medicare Part B and Part D premiums by calculating recipients’ Modified Adjusted Gross Income (MAGI) from two years prior. This income information comes from tax returns and typically includes salaries and taxable Social Security benefits.
“Before all Social Security beneficiaries grow anxious this applies to them, it’s important to understand IRMAA usually only impacts higher-income earners,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. “The added charge for Medicare Part B and Part D applies to those individuals based on tax information provided from two years prior, and the amount of the adjustment depends on how much money the beneficiary earned.”
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In 2026 in particular, the adjusted increase could cost people more than $400 a month, depending on their 2024 MAGI.
In 2026, the standard Part B premium plan—which covers outpatient procedures—costs $202.90 a month. Part D—the plan that covers prescriptions—is free. But if Medicare users fall into a certain IRMAA bracket, those amounts can change. For individual filers who made less than $109,000 in 2024 and joint filers who made less than $218,000 in 2024, monthly Medicare costs don’t change. For people who made more than that, the monthly cost increase varies:
For an individual filer who earned between $109,000 and $137,000 in 2024, Part B plan cost increases to $284.10 a month, and Part D increases to $14.50 a month.
For an individual filer who earned between $137,000 and $171,000 in 2024, Part B plan increases to $405.80 a month, and Part D increases to $37.50 a month.
For an individual filer who earned between $171,000 and $205,000 in 2024, Part B plan increases to $527.50 a month, and Part D increases to $60.40 a month.
For an individual filer who earned between $205,000 and $500,000 in 2024, Part B plan increases to $649.20 a month, and Part D increases to $83.30 a month.
For an individual filer who earned more than $500,000 in 2024, Part B plan increases to $689.90 a month, and Part D increases to $91.00 a month.
For joint filers who earned between $218,000 and $274,000 in 2024, Part B plan increases to $284.10 a month, and Part D increases to $14.50 a month.
For joint filers who earned between$274,000 and $342,000 in 2024, Part B plan increases to $405.80 a month, and Part D increases to $37.50 a month.
For joint filers who earned between $342,000 and $410,000 in 2024, Part B plan increases to $527.50 a month, and Part D increases to $60.40 a month.
For joint filers who earned between $410,000 and $750,000 in 2024, Part B plan increases to $$649.20 a month, and Part D increases to $83.30 a month.
For joint filers who earned more than $750,000 in 2024, Part B plan increases to $689.90 a month, and Part D increases to $91.00 a month.
For people on Social Security who must pay more for Medicare Part B and D plans, the amount is deducted from their Social Security check, Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. “So you retire expecting one payment amount, then suddenly you’re getting hundreds less per month. Many retirees call it being ‘blindsided.’”
Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast agreed with that statement, and is worried that even with the increase in monthly payments people still won’t have enough to cover the increased Medicare costs.
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“Even with a 2.8 percent COLA, many retirees won’t actually feel that increase. Rising Medicare premiums and higher deductibles will eat into it, which may be cutting the bump by a full percentage point,” he told Newsweek. “The ones hit hardest are the middle to lower-middle income brackets, people living on roughly $2,000 a month from Social Security. A $202.90 Medicare premium might not seem like much on paper, but if your monthly check is $1,500, that’s a real hit compared to someone receiving $3,000.”
Americans worried about paying the IRMAA can look into filing a “Medicare Income-Related Monthly Adjustment Amount—Life-Changing Event”—or Form SSA-44—to request a lower payment. You can view it here.
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