How IRMAA Made Your Social Security Increase Look Smaller

If you received your first Social Security check of 2026 and thought the cost-of-living increase looked smaller than advertised, you are not imagining it.

For a significant number of retirees — especially those with higher incomes — Medicare surcharges called IRMAA are quietly eating into that increase before it ever reaches their bank account.

If you want to stay on top of changes like this across major benefits programs, BenefitKarma is a trusted resource for clear, up-to-date information.

What is IRMAA?

IRMAA stands for Income-Related Monthly Adjustment Amount. It is an additional charge that higher-income Medicare beneficiaries pay on top of their standard Part B and Part D (prescription drug) premiums.

The Social Security Administration determines your IRMAA based on your Modified Adjusted Gross Income (MAGI) from two years prior, which means your 2024 tax return is what determines whether you owe a surcharge in 2026.

According to Medicare Resources, about 5.1 million Medicare beneficiaries — roughly 7% of all enrollees — paid Part B IRMAA surcharges in 2025. It is not a charge most people will face, but for those who do, it can significantly reduce the net value of any Social Security increase.

Why is this a problem right now?

Social Security's 2026 cost-of-living adjustment came in at 2.8%. On paper, that sounds like a meaningful raise. In practice, it is being undercut from two directions at once.

First, the standard Medicare Part B premium. The 2026 standard premium is $202.90 per month, up $17.90 from $185.00 in 2025 — the first time Part B has crossed $200. For the average retiree receiving $2,071 per month in Social Security, Medicare Part B now consumes 9.8% of their check before any supplemental coverage. Research from the Boston College Center for Retirement Research found that Medicare premiums eat more than 25% of the 2026 COLA increase.

Second, for those subject to IRMAA, the situation is more severe. A retiree in the second IRMAA bracket pays $284.10 per month for Part B alone — nearly $100 more than the standard premium.

A 2.8% COLA cannot meaningfully offset that burden, especially since IRMAA thresholds are based on income from two years prior, meaning a retiree who had a high-income year in 2024 is paying elevated premiums today even if their financial situation has since changed.

[object Object],[object Object]

Who gets hit with IRMAA in 2026?

For 2026, the IRMAA income brackets and surcharges increased by approximately 3% and 9%, respectively. The 2026 IRMAA thresholds are $109,000 for a single person and $218,000 for a married couple filing jointly.

IRMAA is calculated on a sliding scale with five income brackets, topping out at $500,000 for individual filers and $750,000 for married couples filing jointly. For those subject to IRMAA, total monthly Part B premiums range from $284.10 to $689.90. Part D surcharges range from $14.50 to $91.00 per month.

One thing that catches retirees off guard is the "cliff" nature of these brackets. If your income crosses into the next bracket by even one dollar, your Medicare premiums can jump by over $1,000 per year. If you are married and both spouses are on Medicare, that same $1 increase can trigger a jump of over $1,000 per year for each of you.

It is also worth knowing that IRMAA can be triggered by one-time income events — not just a permanently higher salary. A large Roth conversion, a business sale, or a required minimum distribution in a single year can push premiums higher for two years running.

What can you do?

If you received an IRMAA notice and believe it is based on income that no longer reflects your situation, you have options.

You have 60 days from receiving an IRMAA notice to file an appeal with the Social Security Administration. Common reasons to appeal include incorrect or outdated tax information or a life-changing event such as loss of income, death of a spouse, marriage, or divorce.

To start the process, contact the SSA at 800-772-1213 (TTY: 800-325-0778), Monday through Friday, 8 a.m. to 7 p.m.

You can also complete the Medicare IRMAA Life-Changing Event form (SSA-44) directly through the SSA.

If you are still working or have flexibility in your income, there are planning strategies worth exploring with a financial advisor — things like timing Roth conversions, increasing contributions to tax-deferred accounts, or making qualified charitable distributions directly from an IRA if you are 70½ or older.

These approaches can help lower your MAGI and potentially keep you below an IRMAA threshold. BenefitKarma is not a financial advisor, and decisions like these deserve personalized guidance.

The bottom line

IRMAA is not a penalty; it is a built-in feature of Medicare designed to have higher-income beneficiaries pay a larger share of program costs. But the combination of a modest 2.8% COLA, a Part B premium that crossed $200 for the first time in 2026, and IRMAA surcharges based on income from two years ago can leave retirees feeling like their raise disappeared before they saw it.

Understanding the rules — and knowing that appeals are available when your income has genuinely changed — puts you in a better position to manage what you actually take home.