The Centers for Medicare & Medicaid Services (CMS) has announced the 2026 Medicare Part A and Part B premiums, deductibles, and coinsurance amounts. The headline: the standard monthly Part B premium will be $202.90 in 2026, crossing the $200 threshold for the first time in the program's history. The annual Part B deductible rises to $283.
2026 Medicare Part B: Standard Premium & Deductible
| Item | 2025 | 2026 | Change |
|---|---|---|---|
| Standard Monthly Premium | $185.00 | $202.90 | +$17.90 (+9.7%) |
| Annual Deductible | $257 | $283 | +$26 |
CMS attributes the increase to projected price changes and utilization increases consistent with historical trends, particularly for Part B drugs — biologics and high-cost medicines administered in physician offices and outpatient settings.
2026 Medicare Part A: Hospital Costs
| Item | 2025 | 2026 | Change |
|---|---|---|---|
| Inpatient Hospital Deductible (per benefit period) | $1,676 | $1,736 | +$60 |
| Hospital Coinsurance, Days 61–90 | $419/day | $434/day | +$15/day |
| Lifetime Reserve Days Coinsurance | $838/day | $868/day | +$30/day |
| Skilled Nursing Facility, Days 21–100 | $209.50/day | $217.00/day | +$7.50/day |
| Monthly Part A Premium (if uninsured) | $518 | $565 | +$47 |
Income-Related Adjustments (IRMAA) for Part B
Beneficiaries with higher incomes pay more. The income-related monthly adjustment amounts (IRMAA) for 2026 are based on 2024 tax returns:
| 2024 Individual Income | 2024 Joint Income | 2026 Monthly Part B Premium |
|---|---|---|
| ≤ $109,000 | ≤ $218,000 | $202.90 |
| $109,001–$137,000 | $218,001–$274,000 | $284.10 |
| $137,001–$171,000 | $274,001–$342,000 | $405.80 |
| $171,001–$205,000 | $342,001–$410,000 | $527.50 |
| $205,001–$499,999 | $410,001–$749,999 | $649.20 |
| ≥ $500,000 | ≥ $750,000 | $689.90 |
About 8% of Medicare beneficiaries pay income-adjusted premiums. CMS estimates approximately 35 million Americans are enrolled in Medicare Advantage plans in 2026, a figure expected to grow to about 45 million by 2030.
Social Security Hold-Harmless Rule
By law, the Part B premium increase cannot exceed the dollar amount of a beneficiary's Social Security cost-of-living adjustment (COLA) for the year. Beneficiaries whose Social Security COLA is less than $17.90/month are protected from the full increase. The 2026 Social Security COLA was 2.8%, which translates to varying dollar amounts depending on benefit size.
Key Takeaways
- Budget $202.90/month for the standard Part B premium starting January 2026.
- Pay your Part B deductible of $283 before coverage begins each year.
- Check your 2024 tax return — if your income exceeded $109,000 (individual), you'll receive an IRMAA notice from Social Security.
- If you have limited income, contact your state Medicaid agency about Medicare Savings Programs that may pay your Part B premium.
Why Part B Costs Keep Rising — The Structural Issue
The near-10% increase in Part B premiums for 2026 is the largest single-year jump in several years, and it reflects structural pressures that aren't going away. Part B covers outpatient medical services and physician-administered drugs — a category that includes some of the most expensive treatments in modern medicine: cancer infusions, biologics for autoimmune conditions, and other high-cost specialty medications administered in clinical settings.
Drug spending has become an increasingly dominant driver of Part B costs. Unlike Part D (the pharmacy drug benefit), Part B drugs are paid for on a buy-and-bill model where physicians purchase the drug and then bill Medicare for the cost plus a percentage add-on. This model creates limited price sensitivity and has historically resulted in rapid cost growth as high-cost biologics have expanded in clinical use.
CMS's actions to reduce skin substitute spending — which the agency projects will save approximately $11 per month per beneficiary compared to what the premium would otherwise have been — represent targeted intervention in one of the fastest-growing cost categories. Broader drug pricing reform under Medicare is an ongoing policy debate with significant implications for future Part B premium trajectories.
Medicare Advantage vs. Original Medicare: The Premium Difference
The $202.90 Part B premium applies to everyone in Medicare — including those enrolled in Medicare Advantage (Part C) plans. This is a common point of confusion: Part B premiums are not eliminated by enrolling in Medicare Advantage. They are still required.
What Medicare Advantage does is wrap the coverage of Parts A, B, and often D into a single plan with a defined out-of-pocket maximum, typically lower than Original Medicare's unlimited exposure. Many MA plans have additional premiums on top of the Part B premium; some have $0 additional premium (but still require the Part B premium).
For beneficiaries who can afford a Medigap (Medicare Supplement) policy alongside Original Medicare, the combination can provide more comprehensive coverage than many MA plans — but at a higher total premium cost. The right choice depends on your health, your providers, your geographic flexibility, and your tolerance for administrative complexity.
Medigap Pricing: What a Supplement Costs in 2026
For beneficiaries in Original Medicare who want protection against the 20% Part B coinsurance (which has no annual cap), Medigap policies are the primary option. Common Medigap plans and their typical monthly costs for a 65-year-old:
- Plan G: The most comprehensive option available to new Medicare enrollees (Plan F closed to new enrollees in 2020). Covers everything except the Part B deductible. Typical monthly premium: $100–200 depending on the carrier, state, and tobacco use.
- Plan N: Covers Part B coinsurance except for copays of up to $20 for office visits and $50 for emergency room visits. Lower premium than Plan G; good option for beneficiaries who want most of the coverage at lower cost.
- High-deductible Plan G: Provides Plan G coverage after you meet a deductible ($2,870 in 2026). Significantly lower premium; appropriate for beneficiaries who want catastrophic protection without paying for full first-dollar coverage.
Medigap premiums increase with age and vary significantly by carrier for identical coverage. Shopping Medigap policies from multiple carriers — using your state's SHIP (State Health Insurance Assistance Program) counselors as a free resource — can save hundreds of dollars per year. Use our Health Insurance Calculator to model your Medicare cost picture.
Planning for Medicare Costs in Retirement
For pre-retirees estimating retirement healthcare costs, the 2026 Medicare cost structure provides useful planning benchmarks. A common rule of thumb is that a 65-year-old couple retiring today should expect to spend $300,000–350,000 on healthcare costs throughout retirement, including premiums, cost-sharing, and long-term care. That estimate is sensitive to assumptions about inflation, health status, and coverage choices.
Building a Medicare cost model for your own retirement requires several components: Part B premium trajectory (historically rising faster than general inflation), Part D premium and formulary changes, Medigap or Medicare Advantage premium evolution, and out-of-pocket cost-sharing. The $202.90 Part B standard premium is a 2026 data point; by the time a 55-year-old today reaches 65, the standard premium may be substantially higher.
HSA accounts accumulated during working years are particularly valuable for funding Medicare costs in retirement. Part B premiums, Part D premiums, Medicare Advantage premiums, Medigap premiums, and qualified medical expenses are all HSA-eligible withdrawals. A well-funded HSA can provide a significant tax-free resource for managing Medicare's cost burden. Planning your HSA contributions during working years with retirement Medicare costs in mind is a strategy worth discussing with a financial planner.
The Social Security COLA interaction with Part B premiums also deserves planning attention. If Social Security's COLA for a given year is smaller than the Part B premium increase, the hold-harmless rule limits how much of the increase beneficiaries absorb. In years where COLA is larger than the premium increase, beneficiaries see a net improvement in their Social Security check. Modeling multiple COLA and premium scenarios helps avoid surprises in retirement income planning. Use our Health Insurance Calculator to incorporate Medicare costs into your broader coverage picture.