Medicare beneficiaries heading into 2026 are facing another year of rising costs across both Part A and Part B, continuing a pattern that has steadily eroded the purchasing power of fixed-income seniors over the past decade. The Centers for Medicare & Medicaid Services finalized the 2026 premium and deductible figures, and while the increases may look modest on paper, they compound on top of prior-year hikes and can meaningfully affect household budgets — especially for the roughly half of Medicare enrollees who rely on Original Medicare without supplemental Medigap coverage.
The standard Medicare Part B monthly premium in 2026 has increased from the 2025 level of $185.00, continuing its climb. Part B covers outpatient services, physician visits, preventive care, durable medical equipment, and most non-hospital care, making it the premium that virtually every Medicare beneficiary pays. For most people, this premium is automatically deducted from their Social Security check each month. When the Part B premium rises faster than the Social Security cost-of-living adjustment — which has happened in several recent years — beneficiaries effectively receive a smaller net Social Security payment even when their gross benefit goes up. The Social Security COLA for 2026 was 2.5%, so beneficiaries should calculate whether their net check actually increased after the premium adjustment.
The Part B annual deductible has also risen in 2026. In 2025, beneficiaries paid $257 before Part B coverage kicked in. The 2026 figure reflects CMS actuarial updates tied to projected utilization and cost trends. This deductible resets every January 1, meaning anyone who had a procedure in late 2025 and another in early 2026 effectively pays it twice within a short window. For beneficiaries managing chronic conditions who see specialists regularly, hitting the deductible early in the year is common — but it still represents real money out of pocket before Medicare pays its 80% share.
On the hospital side, the Part A inpatient deductible — which applies per benefit period, not per year — has increased in 2026 as well. In 2025, that deductible stood at $1,676 per benefit period. A benefit period begins the day you're admitted as an inpatient and ends after you've been out of the hospital or skilled nursing facility for 60 consecutive days. Critically, there is no cap on how many benefit periods you can have in a year, which means a beneficiary who is hospitalized, discharged, and then readmitted more than 60 days later faces the full deductible again. Without a Medigap policy or employer retiree coverage to absorb this cost, a second hospitalization in the same calendar year can mean paying the deductible twice.
Part A coinsurance costs for extended hospital stays also deserve attention. After 60 days in the hospital during a single benefit period, beneficiaries begin paying daily coinsurance — a figure that also adjusts upward each year. In 2025, days 61 through 90 cost $419 per day in coinsurance, and the 60 lifetime reserve days cost $838 per day. These figures increase in 2026, and beneficiaries who experience serious illnesses requiring lengthy hospitalizations can face coinsurance bills that dwarf the initial deductible. Skilled nursing facility coinsurance — which kicks in after 20 days of covered SNF care — similarly increases, reaching a higher daily rate for days 21 through 100 in 2026.
For higher-income beneficiaries, the Income-Related Monthly Adjustment Amount, known as IRMAA, adds a surcharge on top of the standard Part B premium and also applies to Part D drug plan premiums. IRMAA is calculated based on your modified adjusted gross income from two years prior — so your 2026 premium is based on your 2024 tax return. The income brackets that trigger IRMAA surcharges are adjusted annually for inflation. In 2026, individuals with MAGI above approximately $106,000 (and married couples above $212,000) begin paying IRMAA surcharges, with the highest earners paying several hundred dollars more per month than the standard premium. If your income dropped significantly in 2024 due to retirement, a one-time distribution, or another life event, 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 beneficiaries overlook and it can result in meaningful monthly savings.
Beneficiaries enrolled in Medicare Advantage plans rather than Original Medicare do not pay the Part A or Part B deductibles directly in the same way — their plans set their own cost-sharing structures — but they still pay the Part B premium. Medicare Advantage plan premiums, deductibles, and copays are set by individual insurers and approved by CMS annually, so Advantage enrollees should review their 2026 plan documents carefully. The Annual Enrollment Period runs October 15 through December 7 each year, and the Open Enrollment Period from January 1 through March 31 allows Advantage enrollees to switch plans or return to Original Medicare once. If you're already in Original Medicare and considering Medigap, be aware that outside of guaranteed issue windows, insurers in most states can use medical underwriting to deny coverage or charge higher premiums based on health status.
For beneficiaries with limited income and resources, the Medicare Savings Programs administered by state Medicaid agencies can pay some or all of the Part B premium, and in some cases cover deductibles and coinsurance as well. The four tiers — Qualified Medicare Beneficiary, Specified Low-Income Medicare Beneficiary, Qualifying Individual, and Qualified Disabled and Working Individuals — have different income and asset thresholds that vary slightly by state. Roughly 9 million people are enrolled in Medicare Savings Programs, but millions more likely qualify and haven't applied. Contact your State Health Insurance Assistance Program, known as SHIP, for free one-on-one counseling — find your local SHIP counselor at shiphelp.org. Additionally, the Extra Help program (also called the Low Income Subsidy) can dramatically reduce Part D drug costs for qualifying beneficiaries.
The underlying driver of rising Medicare costs is not mysterious: healthcare spending in the United States continues to grow faster than general inflation, and Medicare's actuaries must set premiums and deductibles to keep the program solvent. Part B is funded roughly 75% by general tax revenues and 25% by beneficiary premiums, so when projected spending rises — driven by factors like new high-cost drugs, increased utilization, and an aging population — premiums follow. The approval of expensive medications, including certain Alzheimer's treatments, has been a specific factor CMS has cited in recent years when explaining Part B premium increases, since drugs administered in physician offices are covered under Part B rather than Part D.
The practical steps for beneficiaries are clear. First, check your Medicare Summary Notice or log into your MyMedicare.gov account to confirm your 2026 premium amount, particularly if you're near an IRMAA income threshold. Second, if you have Original Medicare without a Medigap supplement, model what a hospitalization would cost you out of pocket under 2026 cost-sharing rules — the Part A deductible alone now exceeds $1,700, and coinsurance for extended stays can run into the tens of thousands. Third, if your income declined in 2024, contact the Social Security Administration about filing for an IRMAA exception. Fourth, check your eligibility for Medicare Savings Programs through your state Medicaid office — even if you've been denied before, income and asset thresholds change annually. Understanding exactly what you'll pay in 2026 is the first step toward making sure you're not caught off guard when the bills arrive.