Kean Introduces Legislation to Reduce Healthcare Costs for Seniors

(July 15, 2026) WASHINGTON, D.C. - Today, Congressman Tom Kean, Jr. (NJ-07) announced the introduction of the Medicare Premiums Reduction Act of 2026, legislation that would reduce Medicare premiums for seniors to help address affordability challenges.

Under current law, Medicare Part B and D each add the Income Related Monthly Adjustment Amount (IRMAA) surcharge to monthly premiums for seniors with an annual income of $109k or more.

This legislation would eliminate a surcharge on Medicare Parts B and D premiums for seniors making between $109,000 and $171,000 as an individual and between $218,000 and $342,000 as a married couple. This could provide an individual senior with savings of up to $241 per month or a senior couple with savings of up to $482 per month.

"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."

"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."

"I contacted Congressman Kean because I know firsthand how the Medicare surcharges are hurting seniors," said Peter Derosa, from Green Brook, New Jersey. "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."

Congressman Kean has championed efforts to address affordability in Congress. In the 2025 Reconciliation package, Congressman Kean led the fight to quadruple the State and Local Tax (SALT) Deduction to $40,000, delivering a major victory for New Jersey families.

The full text of the Medicare Premiums Reduction Act of 2026 can be found HERE.

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