WASHINGTON, D.C. — U.S. Rep. Tom Kean Jr., R-N.J., has introduced legislation that would reduce Medicare premium surcharges for certain higher-income seniors, saying the measure would help ease healthcare costs for retirees.
The Medicare Premiums Reduction Act of 2026, announced Wednesday, would eliminate the Income Related Monthly Adjustment Amount, or IRMAA, surcharge on Medicare Parts B and D premiums for individuals with annual incomes between $109,000 and $171,000 and married couples earning between $218,000 and $342,000.
Under current law, Medicare beneficiaries with incomes above certain thresholds pay higher monthly premiums for Medicare Parts B and D through the IRMAA surcharge.
According to Kean’s office, the legislation could save an individual senior up to $241 per month and a married couple up to $482 per month by eliminating the first two IRMAA income tiers.
“Healthcare costs, especially for seniors, can be a tremendous burden,” said Congressman Kean (NJ-07). “Reducing healthcare costs for every New Jersey family remains one of my top priorities. By eliminating unnecessary Medicare costs, we can help ensure seniors have access to the care they depend on without being forced to sacrifice their hard-earned savings.”
Rep. Young Kim, R-Calif., joined Kean in introducing the bill.
“Seniors in high-cost areas like Southern California should not be penalized with extra Medicare surcharges on top of their premiums simply because of where they live,” said Rep. Young Kim (CA-40). “The Medicare Premiums Reduction Act of 2026 provides real, immediate real relief so our seniors can keep more of their hard-earned retirement savings. I’m proud to team up with Rep. Kean to cut these unfair costs and give seniors the breathing room they deserve on their health care expenses.”
Peter Derosa of Green Brook, a certified financial planner who said he contacted Kean about the issue, praised the proposal.
“I contacted Congressman Kean because I know firsthand how the Medicare surcharges are hurting seniors,” said Derosa. “I am a certified financial planner with a master’s degree in economics from Rutgers University, have been doing retirement planning over 50 years, and am now semi-retired. Almost any distribution or rollover from a retirement plan now triggers IRMAA. The current tier levels are far too low. They are simply a backdoor way to increase the cost of Medicare for people who have worked their entire lives for the benefit. By eliminating the first two tiers of income that are currently subject to Medicare surcharges, Congressman Kean’s bill is identifying a problem and providing a solution for many seniors.”
Kean’s office said the proposal builds on the congressman’s efforts to address affordability issues, including his support for increasing the federal State and Local Tax deduction to $40,000 as part of the 2025 reconciliation package.
