If you're on Medicare in 2026, your costs went up — and in some cases, by more than you might expect. The Centers for Medicare & Medicaid Services finalized the 2026 Medicare cost-sharing figures, and nearly every major number moved in the wrong direction for beneficiaries' wallets. Understanding exactly what changed, and why, can help you make smarter decisions about your coverage for the rest of the year.
The most visible change for most people is the Part B premium. In 2026, the standard monthly premium is $185.00, up from $174.70 in 2025. That's a $10.30 monthly increase, or $123.60 more per year coming out of your Social Security check. For couples where both spouses are on Medicare, that's nearly $250 in additional annual costs just for Part B premiums alone. Higher-income beneficiaries pay even more through Income-Related Monthly Adjustment Amounts, known as IRMAA. If your modified adjusted gross income from two years ago — meaning your 2024 tax return — exceeded $106,000 as an individual or $212,000 as a couple, you're already in IRMAA territory and paying surcharges that range from an additional $74.00 to $443.90 per month on top of the standard premium, depending on your income bracket.
The Part B deductible also increased in 2026, reaching $257 for the year, up from $240 in 2025. This is the amount you must pay out of pocket for covered outpatient services — doctor visits, lab work, outpatient procedures — before Medicare starts paying its 80 percent share. Once you've met that deductible, you're still responsible for 20 percent of the Medicare-approved cost for most outpatient services, with no annual cap under Original Medicare alone. That 20 percent coinsurance with no ceiling is one of the most significant financial risks in Original Medicare, and it's why many beneficiaries carry either a Medigap supplemental policy or have enrolled in Medicare Advantage, which typically includes out-of-pocket maximums.
On the hospital side, the Part A deductible — what you pay when you're admitted as an inpatient — rose to $1,676 per benefit period in 2026, up from $1,632 in 2025. It's important to understand that this is not an annual deductible. It's a per-benefit-period deductible, meaning if you're hospitalized, recover, and then are hospitalized again more than 60 days later, you could owe this deductible twice in the same calendar year. For days 1 through 60 of a hospital stay, you pay only the deductible. From days 61 through 90, you owe a daily coinsurance of $419 per day in 2026. Beyond 90 days, you can draw on your 60 lifetime reserve days, but those cost $838 per day. After your lifetime reserve days are exhausted, Medicare pays nothing for inpatient hospital care. Beneficiaries without Medigap coverage — particularly those in lower-income brackets who don't qualify for Medicaid — face real financial exposure if a serious illness leads to a prolonged hospital stay.
Skilled nursing facility costs also increased in 2026. Medicare covers the first 20 days of a qualifying skilled nursing facility stay at no cost to you. But from days 21 through 100, you owe a daily coinsurance of $209.50 in 2026, up from $204.00 in 2025. After 100 days, Medicare pays nothing for skilled nursing care. This matters enormously for beneficiaries recovering from a stroke, hip fracture, or major surgery, where rehabilitation can extend well beyond three weeks. Many Medigap plans — specifically Plans A, B, D, G, K, L, M, and N — cover some or all of this skilled nursing coinsurance, which is one reason financial advisors often recommend Medigap for beneficiaries who can afford the premiums.
Why do these costs keep rising? CMS ties Part B premium increases largely to projected spending on physician services, outpatient care, and — increasingly — high-cost drugs administered in clinical settings. The approval of new treatments for conditions like Alzheimer's disease and certain cancers has added significant projected costs to the Part B program, since these drugs are often covered under Part B rather than Part D when administered by a provider. Part A cost increases reflect rising hospital operating costs, including labor and supply chain expenses that accelerated during and after the pandemic. These structural cost drivers are unlikely to reverse in the near term, which means beneficiaries should plan for continued gradual increases in cost-sharing in future years.
If you're currently enrolled in Original Medicare without any supplemental coverage, 2026 is a good time to evaluate whether a Medigap policy makes financial sense for you. Medigap Plan G is currently the most comprehensive plan available to beneficiaries who became eligible for Medicare after January 1, 2020 — it covers the Part B deductible is not covered, but it does cover the Part A deductible, skilled nursing coinsurance, and the 20 percent Part B coinsurance with no cap. Plan N is a lower-premium alternative that still covers the Part A deductible and skilled nursing coinsurance but requires small copays of up to $20 for office visits and up to $50 for emergency room visits. The right choice depends on how frequently you use medical services and your tolerance for unpredictable out-of-pocket costs.
If you're already enrolled in Medicare Advantage, your plan's out-of-pocket maximum provides a ceiling that Original Medicare alone does not. In 2026, CMS set the maximum allowable out-of-pocket limit for Medicare Advantage plans at $9,350 for in-network services. Once you hit that limit, your plan covers 100 percent of covered in-network costs for the rest of the year. However, plans vary widely — some set their maximums well below the CMS ceiling, and others include combined in-network and out-of-network limits that can reach higher. Review your 2026 Evidence of Coverage document, which your plan was required to mail you before the start of the year, to confirm your specific plan's out-of-pocket maximum.
For beneficiaries with limited income and resources, the Medicare Savings Programs can help cover Part B premiums and some cost-sharing. The Qualified Medicare Beneficiary program, for example, pays your Part B premium, deductible, and coinsurance if your income is at or below roughly 100 percent of the federal poverty level. The Specified Low-Income Medicare Beneficiary program covers just the Part B premium for those with slightly higher incomes. Eligibility thresholds vary by state, and many states have expanded their income limits in recent years. Contact your State Health Insurance Assistance Program — SHIP — counselor for free, unbiased help determining whether you qualify. You can find your local SHIP contact at shiphelp.org.
If you believe your IRMAA surcharge is based on income that no longer reflects your current financial situation — for example, if you retired, experienced a divorce, or had a significant income drop since your 2024 tax return — you can file a Life-Changing Event appeal with Social Security using Form SSA-44. Approved appeals can reduce or eliminate your IRMAA surcharge going forward, potentially saving hundreds of dollars per month. This is one of the most underused cost-reduction tools available to Medicare beneficiaries and worth pursuing if your circumstances have changed.