If your income has dropped since retiring, you can appeal the extra charges added to your Medicare Part B and Part D premiums. These surcharges, called IRMAA or Income-Related Monthly Adjustment Amounts, may no longer apply to your current financial situation.

Medicare bases IRMAA on your tax return from two years ago. Your 2024 income determines your 2026 premiums. If your income was higher in 2024 than it is now, you could be paying more than necessary.

In 2026, IRMAA applies if your individual income was over $109,000 or over $218,000 for joint filers. If your current income falls below these thresholds, filing an appeal makes sense.

You’ll receive a benefit determination letter explaining your IRMAA amount. After getting this letter, you can request an adjustment with Social Security based on your current, lower income.

To appeal successfully, provide documentation showing a life-changing event such as retirement, divorce, or loss of income. Social Security will review your appeal and supporting documents. If approved, your premium will be reduced to reflect your actual income rather than your higher income from two years ago.