Medicare Part A and B Costs Rise in 2026: What You'll Pay

Every fall, the Centers for Medicare & Medicaid Services announces what Medicare beneficiaries will pay in the coming year, and 2026 brings increases across nearly every cost-sharing category in Original Medicare. If you rely on Medicare Parts A and B — the traditional fee-for-service program that covers hospital stays, doctor visits, and outpatient care — your costs are going up. Understanding exactly where those increases land, and by how much, is the first step toward managing your health care budget for the year ahead.

The Medicare Part B standard monthly premium, which covers outpatient services including doctor visits, lab work, preventive screenings, and durable medical equipment, has risen again for 2026. Part B premiums have climbed steadily over the past several years, driven largely by rising drug costs, increased utilization of outpatient services, and CMS's need to maintain adequate reserves in the Supplementary Medical Insurance Trust Fund. Most beneficiaries have this premium deducted automatically from their Social Security check each month, which means less take-home income starting in January 2026. For someone already managing on a fixed Social Security benefit, even a modest monthly increase compounds over a full year into a meaningful reduction in purchasing power.

The Part B annual deductible — the amount you must pay out of pocket before Medicare begins covering 80 percent of approved outpatient costs — has also increased for 2026. Once you meet that deductible, Original Medicare still leaves you responsible for 20 percent of every covered outpatient service with no cap on your annual exposure. That 20 percent coinsurance with no out-of-pocket maximum is one of the most important structural features of Original Medicare that beneficiaries sometimes underestimate. A single outpatient surgery, a course of chemotherapy, or ongoing physical therapy can generate thousands of dollars in cost-sharing under Part B alone, which is precisely why Medigap supplemental insurance or Medicare Advantage plans exist as alternatives.

On the hospital side, Part A costs have also increased for 2026. The Part A inpatient hospital deductible — which applies per benefit period, not per year — is higher than in 2025. This deductible covers your first 60 days in the hospital during a single benefit period. If your hospital stay extends beyond 60 days, daily coinsurance kicks in for days 61 through 90, and that per-day amount has also risen in 2026. For the relatively rare but financially devastating situation of a very long hospitalization, Medicare provides 60 lifetime reserve days beyond the 90-day benefit period limit, and the daily coinsurance for those reserve days is higher as well in 2026. Skilled nursing facility coinsurance for days 21 through 100 of a covered SNF stay has similarly increased, which matters enormously for beneficiaries recovering from a stroke, hip replacement, or other condition requiring post-acute rehabilitation.

One aspect of these increases that catches many beneficiaries off guard is the Income-Related Monthly Adjustment Amount, known as IRMAA. If your modified adjusted gross income exceeded certain thresholds two years prior — meaning your 2024 tax return is what CMS uses to set your 2026 premium — you will pay more than the standard Part B premium, and potentially a surcharge on your Part D drug plan premium as well. For 2026, IRMAA surcharges apply at multiple income tiers, with the highest-income beneficiaries paying several hundred dollars more per month than the standard rate. Retirees who took large IRA distributions in 2024, sold a home or investment property, or received a pension lump sum may find themselves in an IRMAA bracket for the first time in 2026. The good news is that if your income has since dropped — due to retirement, loss of a spouse's income, or other life-changing events — you can file Form SSA-44 with the Social Security Administration to request a reduction based on more recent income. This is a step many eligible beneficiaries never take simply because they don't know it exists.

For beneficiaries who have a Medigap policy — also called Medicare Supplement Insurance — many of these cost increases are partially or fully absorbed by the supplemental plan, depending on which plan letter you hold. A Medigap Plan G, for example, covers the Part A deductible, Part A coinsurance, and Part B coinsurance after you pay the Part B deductible yourself. A Medigap Plan N covers most of those costs but requires small copayments for some office visits and emergency room visits. Beneficiaries with Plan F, which is no longer available to those who became Medicare-eligible after January 1, 2020, have the most comprehensive coverage and would see the least direct impact from these increases. If you don't currently have a Medigap policy and are in good health, the Annual Enrollment Period running October 15 through December 7 is not the window to shop for Medigap — that period is for Medicare Advantage and Part D changes. Medigap enrollment outside of your initial guaranteed-issue window typically requires medical underwriting, meaning insurers can charge you more or deny coverage based on health conditions, unless you live in one of the states with a birthday rule.

Speaking of state protections: if you live in California, Idaho, Illinois, Kentucky, Louisiana, Maine, Maryland, Missouri, Nevada, New Jersey, New York, Oklahoma, or Oregon, your state has a birthday rule that gives you a 30-day window each year around your birthday to switch to a Medigap plan with equal or lesser benefits without medical underwriting. This is a powerful consumer protection that allows beneficiaries in those states to shop for lower Medigap premiums annually without fear of being denied coverage. If you're in one of these states and haven't compared Medigap premiums recently, the cost increases in Original Medicare for 2026 make this a particularly good year to do so.

For lower-income beneficiaries, several programs can help offset these rising costs. The Medicare Savings Programs — administered by state Medicaid agencies — can pay your Part B premium, and in some cases your Part A premium, deductibles, and coinsurance, depending on your income and assets. The four tiers of Medicare Savings Programs are the Qualified Medicare Beneficiary program, the Specified Low-Income Medicare Beneficiary program, the Qualifying Individual program, and the Qualified Disabled and Working Individuals program. Eligibility thresholds vary by state and are updated annually. Applying through your state Medicaid office is free, and approval is retroactive in many states. Additionally, the Extra Help program for Part D drug costs remains available to beneficiaries with limited income and resources, and enrollment in a Medicare Savings Program often triggers automatic Extra Help eligibility.

If you're enrolled in a Medicare Advantage plan rather than Original Medicare, your exposure to these specific Part A and B cost changes is different. Medicare Advantage plans receive a per-member payment from CMS based partly on the benchmark amounts tied to Original Medicare costs, and plans set their own cost-sharing structures within CMS guidelines. However, rising Original Medicare costs do influence the overall Medicare funding environment, and beneficiaries should review their Medicare Advantage plan's Evidence of Coverage document each year during the Annual Enrollment Period to understand any changes to their plan's premiums, deductibles, copayments, and out-of-pocket maximums for 2026. Plans can and do change these figures annually, and the plan you enrolled in three years ago may look quite different today.

The most practical step you can take right now is to pull out your 2024 tax return and check your modified adjusted gross income to determine whether you might face an IRMAA surcharge in 2026. Then review your current coverage — whether Original Medicare with or without a Medigap policy, or Medicare Advantage — against the new 2026 cost-sharing figures. Your State Health Insurance Assistance Program, known as SHIP, offers free one-on-one counseling from trained volunteers who can walk you through your specific situation without trying to sell you anything. You can find your local SHIP counselor through Medicare.gov or by calling 1-800-MEDICARE. These cost increases are real, but with the right coverage structure, many beneficiaries can significantly limit their actual out-of-pocket exposure.