Congress raises Medicare surcharge threshold for wealthier seniors
H.R. 9709 — Medicare Premiums Reduction Act of 2026 · Filed by Thomas Kean (R-NJ) · 1 cosponsor · Introduced Jul 15, 2026 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill adjusts Medicare Part B premium surcharges for higher-income beneficiaries. Currently, beneficiaries with modified adjusted gross income above $85,000 pay an income-related surcharge on top of the standard premium. The bill raises that threshold to $171,000 starting in 2027, and creates new higher brackets ($171,000–$205,000 at 65% surcharge; $205,000–$500,000 at 80%; $500,000+ at 85%), while freezing the current rules through 2026. Higher-income seniors benefit by paying lower surcharges; lower-income beneficiaries see no change.
Why we flagged it
The bill's sole function is to modify the income thresholds and surcharge brackets that determine how much higher-income Medicare beneficiaries pay for Part B coverage. It is a technical amendment to Social Security Act § 1839(i) with no riders or extraneous provisions.
What the text implies
- The bill does not specify how the revenue loss from reduced surcharges will be offset—whether through higher standard premiums for all beneficiaries, general revenue, or Medicare trust fund drawdown. This fiscal impact is material but absent from the text.
- Raising the threshold from $85,000 to $171,000 may shift the surcharge burden downward onto lower-income beneficiaries if standard premiums rise to compensate, though the bill does not address this.
The full analysis lists 3 implications of this text.
Who stands to gain
Medicare beneficiaries with modified adjusted gross income between $85,000 and $500,000