Updated: June 2026
Medicare Cost Estimator
Project your annual Medicare costs (Part B, Part D, and Medigap) including IRMAA surcharges based on your retirement income.
Understanding Medicare Costs in Retirement
Medicare is not free. Most retirees pay Part B premiums (deducted from Social Security), Part D drug premiums, and optional Medigap/Medicare Advantage premiums. Higher earners pay IRMAA surcharges on top of standard premiums.
- Part A (hospital): Free for most retirees (requires 40 quarters of Medicare-covered work).
- Part B (medical): $185/month standard in 2026, subject to IRMAA surcharges up to $622/month.
- Part D (drugs): Varies by plan; IRMAA surcharges add $14–$86/month for higher earners.
- Medigap: Covers gaps in Original Medicare. Plan G averages ~$200/month nationally.
IRMAA Planning Strategies
IRMAA is determined using your MAGI from 2 years prior. A Roth conversion in year N raises MAGI and can trigger IRMAA in year N+2. Key strategies to manage IRMAA:
- Complete large Roth conversions before Medicare enrollment at 65
- Use QCDs to satisfy RMDs without increasing MAGI (for ages 70+)
- Spread conversions across multiple years to stay below IRMAA thresholds
- File a Medicare IRMAA appeal (SSA Form SSA-44) if income dropped due to a life-changing event
Sources
Premium data: Medicare.gov 2026 Costs, CMS 2026 Part B Announcement.