One of the biggest misconceptions about Medicare is that coverage is free. While Medicare Part A is generally free, Part B charges a monthly premium. Your Part B premiums are automatically paid once you start collecting Social Security, unless you’re not on Social Security, then you must pay them yourself. The standard monthly premium for Medicare Part B this year is $202.90. However, some enrollees end up paying more due to income-related adjustments, known as IRMAAs, which can increase costs substantially. IRMAAs are based on income from two years prior and can apply to Part D drug plans as well. Certain factors like large withdrawals from retirement accounts, capital gains, or business earnings in retirement can make IRMAAs more likely. Consult a tax professional to strategize ways to lower your income to avoid IRMAAs or prepare for the increased costs. It’s crucial to understand how IRMAAs work and how they can impact your Medicare costs. Don’t let these surcharges catch you off guard. Maximize your Social Security benefits with little-known strategies to boost your retirement income. Learn how to secure your financial future in retirement by making the most of your Social Security benefits. Many Americans are missing out on valuable retirement income by not maximizing their Social Security benefits. Join Stock Advisor to access more retirement strategies and opportunities to enhance your financial security in retirement.

Read more at Yahoo Finance: 1 Important Medicare Rule All Retirees Need to Know in 2026