Medicare Part D

How income raises Medicare Part B and D costs in Palm Bay

PALM BAY, Fla. — As Medicare's Annual Enrollment Period runs through Dec. 7, higher-income retirees along the Space Coast are getting a fresh look at something that catches many people off guard: the income-related surcharges that can raise both Part B and Part D premiums in 2027.

The rules haven't changed in spirit, but the income thresholds shift for the new year. If your income crossed a line back in 2025, you could see a bigger Medicare bill starting in January — even if nothing about your health coverage changed. CMS publishes the 2027 IRMAA brackets later this fall, alongside the Part B figures.

Here's what Palm Bay readers should know before the enrollment window closes.

What IRMAA actually is

IRMAA stands for the Income-Related Monthly Adjustment Amount. It's an extra charge added to your standard Part B premium, and — if you have Part D drug coverage — to your Part D premium as well.

Most people pay the standard Part B premium and no Part D adjustment. But if your income is above a set threshold, Social Security adds a surcharge on top. It isn't a penalty for late enrollment; it's simply a higher share of the program's cost that higher earners are asked to pay.

The 2027 income thresholds

For 2026, IRMAA begins when your modified adjusted gross income (MAGI) is above $109,000 for a single filer or $218,000 for a married couple filing jointly, according to the Centers for Medicare & Medicaid Services.

A few things worth knowing:

• Medicare uses your 2025 tax return to set your 2027 surcharge (a two-year lookback).
• The surcharge climbs in tiers — the higher your income, the higher the add-on.
• The Part B and Part D adjustments are calculated separately but triggered by the same income figure.
• If you drop below a threshold, the surcharge can come off the following year automatically.

You can see the current tier chart on Medicare.gov under "Costs."

What if your income has dropped?

This part matters. If you've had a "life-changing event" since 2025 — retirement, the death of a spouse, divorce, loss of a pension, or reduced work hours — you can ask Social Security to recalculate using more recent income.

The form is SSA-44, and you file it with Social Security, not with Medicare. Palm Bay residents can start at the Melbourne Social Security office or call the Social Security Administration directly. Bringing documentation of the event (like a retirement date or a death certificate) speeds things up.

Why this matters more in 2027

Two other 2027 changes make the income question more pressing than usual:

• Part D's out-of-pocket cap rises to $2,400 in 2027 (up from $2,100 in 2026). Once your drug spending hits that ceiling, you pay nothing for covered drugs the rest of the year.
• The Part D deductible maxes out at $700 in 2027 (up from $615 in 2026), and the old "donut hole" is fully gone — replaced by a simpler three-phase structure.

Those are welcome changes, especially for retirees on expensive medications. But they don't erase IRMAA. A higher earner in Palm Bay could benefit from the new drug cap and still see a bigger monthly premium because of the income surcharge. It's worth budgeting for both sides.

How Palm Bay fits in

Palm Bay is in Brevard County, where Medicare beneficiaries have a wide range of Original Medicare, Medicare Advantage, and stand-alone Part D options during Annual Enrollment. Availability is set at the county level, so any plan you see advertised in Melbourne, Titusville, or Cocoa is generally available to Palm Bay residents too.

IRMAA follows you regardless of which route you choose — Original Medicare with a Part D plan, or a Medicare Advantage plan that includes drug coverage. The surcharge is tied to your income and to the parts you're enrolled in, not to any specific plan.