No. 1 Medicare Timing Move That Can Save Retirees Hundreds a Month (Without Changing Doctors)
Retirement often brings a significant drop in income, but Medicare may not recognize that change right away. That’s because, according to Medicare, Social Security generally determines income-related Medicare premiums using tax information from two years earlier. For 2026 premiums, for example, it generally uses a retiree's 2024 tax return. For 2027, it will use 2025’s tax return.
For retirees who earned significantly more while working, that lag can trigger an income-related monthly adjustment amount (IRMAA) on Medicare Part B and Part D. However, you don't necessarily have to wait two years for those premiums to catch up. Per the Social Security Administration (SSA), a reduction in income (as related to stopping work) can qualify as a life-changing event that allows you to ask Social Security to recalculate IRMAA using more recent income information.
Good To Know: How To Avoid the Highest Medicare Premiums in 2026
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Find out how this one Medicare timing move can help you save hundreds a month.
Don’t Wait for Medicare’s Income Lookback To Catch Up
According to the SSA, the key timing move is to request a new IRMAA determination after retirement if your income has fallen enough to put you into a lower Medicare income bracket. The SSA specifically recognizes "work stoppage" and "work reduction" as qualifying life-changing events, so retirees don't necessarily have to keep paying premiums based on their former working income.
The Savings Can Reach Hundreds of Dollars a Month
IRMAA isn't a small surcharge at higher income levels. The standard 2026 Part B premium is $202.90 per month for 2026, but high-income beneficiaries can pay as much as $689.90 per month before factoring in the separate Part D IRMAA.
According to the Centers for Medicare & Medicaid Services, these numbers range depending on income as follows for a single filer.
Adjusted gross income of $109,000 or less: $202.90 a month
More than $109,000 to $137,000: $284.10
More than $137,000 to $171,000: $405.80
More than $171,000 to $205,000: $527.50
More than $205,000 to less than $500,000: $649.20
$500,000 or more: $689.90
File Form SSA-44 After a Qualifying Income Drop
Retirees who receive an IRMAA notice after their income has dropped can request a reduction using form SSA-44. The form asks for a qualifying event, its date and more recent income information.
Qualifying events include work stoppage and work reduction, marriage, divorce or annulment, death of a spouse, loss of income-producing property, loss of pension income and certain employer settlement payments. You may need to show supporting documentation.
Check Your IRMAA Notice as Soon as You Retire
Not every retiree should file form SSA-44. But anyone who retires or cuts back work substantially should compare the income in their IRMAA determination with what they realistically expect to earn now.
If the old income bumps them above an IRMAA threshold while their newer income would put them in a lower bracket, requesting a new determination could save money. Because the change concerns an income-based Medicare surcharge rather than the doctors in your network, retirees may be able to lower their monthly Medicare costs without disrupting their medical care.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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