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Some retirees are choosing not to sell homes due to Medicare surcharges
Medicare IRMAA can raise Part B premiums and add to Part D costs two years after higher income, with IRMAA thresholds starting at $109,000 for individuals and $218,000 for joint filers in 2026.
Some retirees are opting to hold onto their homes rather than sell, citing a Medicare rule that can increase monthly premiums after certain income changes, according to Yahoo Finance. The concern centers on the income-related monthly adjustment amount, or IRMAA, which can raise Medicare Part B and Part D premium costs for higher-income beneficiaries.
IRMAA is tied to modified adjusted gross income reported on a tax return two years earlier. If that prior-year MAGI is high enough, Part B (for doctor visits and outpatient services) and Part D (prescription drug coverage) premiums can rise later, the article notes, because the surcharge is assessed based on the earlier income figure.
The story says IRMAA surcharges begin at $109,000 for individuals and $218,000 for joint filers in 2026, and the added cost can be substantial. In 2026, the standard Part B premium is $202.90 per month, but the range cited for higher tiers is $284 to $690 per month.
Yahoo Finance also highlights that selling a home can trigger a one-time income boost that pushes a retiree into a higher tier, even if the extra income is temporary. With Part D premiums set by private insurers, the article says the IRMAA charge is added on top of the monthly Part D amount, and that some retirees are discovering the impact only after they have sold and moved on, the report added.