Why 2027 Medicare surcharges may be harder to predict

Seniors eagerly await two announcements every autumn: first, how large their Social Security pay raise will be the following year and, weeks later, how much of it will be eaten by Medicare premiums.

Medicare premiums are usually deducted automatically from monthly Social Security checks and announced between late October and early November.

Medicare Part B premiums, which cover medically necessary services and supplies and preventive care, have increased faster than Social Security's cost-of-living adjustment for three consecutive years and in seven of the last 10 years, according to The Seniors Citizens League. Over the last decade, Part B premiums have increased by an average of 5.3% per year, while COLAs have only averaged 3.1%, the advocacy group said.

For those who don't keep a tight rein on income and pierce certain thresholds, even by $1, Medicare costs can suddenly jump by more than $1,000 per year due to the 'income-related monthly adjustment amount,' or IRMAA. That makes keeping track of inflation-adjusted annual income thresholds key to keeping health insurance costs down, but that's easier said than done, especially for 2027.

Not only must Medicare enrollees remember IRMAA is based on what they ea rned two years ago in 2025, but…

Original source: https://www.usatoday.com/money/