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Federal retirees face unexpected Medicare IRMAA surcharges due to billing rules and income thresholds.

Market News
30 May 2026
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Neutral
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Many federal retirees with solid pensions and Social Security income are surprised by Medicare IRMAA surcharges because the hold-harmless rule does not protect them if their Medicare premiums are billed separately from Social Security. This leads to higher premiums when their income, including pension and TSP withdrawals, crosses certain thresholds. The article explains how the billing structure disqualifies them from protection, causing significant annual surcharges. It advises retirees to file Form SSA-44 for reconsideration, switch to direct Medicare premium deductions from Social Security, and consider Roth conversions to manage future income and avoid higher surcharges.

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