What Medicare Will Cost You in 2026: Every Key Number

If you are on Medicare in 2026, your costs changed on January 1 — and for most beneficiaries, they went up. The standard Part B monthly premium is now $185.00, compared to $174.70 in 2025. That $10.30-per-month increase translates to $123.60 more per year coming out of your Social Security check or your bank account. For couples where both spouses are on Medicare, that is nearly $250 in additional annual costs just for Part B premiums alone. The Centers for Medicare and Medicaid Services (CMS) attributed the increase primarily to projected spending growth in outpatient services and the continued uptake of high-cost prescription drugs covered under Part B, such as certain cancer infusions and injectable medications administered in physician offices.

The Part B annual deductible — the amount you pay before Medicare starts covering 80% of outpatient costs — also increased in 2026, rising to $257 from $240 in 2025. Once you meet that deductible, Original Medicare pays 80% of approved outpatient costs, and you remain responsible for the remaining 20% with no cap. That uncapped 20% coinsurance is one of the most significant financial risks in Original Medicare, and it is the primary reason many beneficiaries choose either a Medicare Supplement (Medigap) plan or a Medicare Advantage plan to limit their exposure.

On the hospital side, the Part A inpatient deductible — which applies per benefit period, not per year — rose to $1,676 in 2026. A benefit period begins the day you are admitted to a hospital or skilled nursing facility and ends when you have been out of inpatient care for 60 consecutive days. Critically, if you are readmitted after that 60-day gap, a new $1,676 deductible applies. For beneficiaries with serious or chronic conditions who face multiple hospitalizations in a year, this structure can result in paying that deductible more than once. After 60 days in the hospital within a single benefit period, you also begin paying daily coinsurance: $419 per day for days 61 through 90 in 2026, and $838 per day for each lifetime reserve day beyond that.

For beneficiaries enrolled in Medicare Advantage plans — which now cover more than half of all Medicare enrollees nationally — the 2026 cost picture is shaped by plan-specific premiums, deductibles, and copays that vary widely by insurer and county. CMS set the maximum out-of-pocket limit for Medicare Advantage in-network services at $9,350 in 2026. Plans may set their own caps below that ceiling, and many do, but no plan is permitted to expose enrollees to unlimited cost-sharing the way Original Medicare can. Some Medicare Advantage plans continue to offer $0 monthly premiums in 2026, though these plans have become somewhat less common in certain markets as insurers adjust their bids in response to CMS reimbursement changes. When comparing plans during the Medicare Advantage Open Enrollment Period, which runs January 1 through March 31 each year, look beyond the premium to the plan's deductible, drug formulary tier structure, and specialist copays — those numbers often matter more than the monthly premium.

High-income beneficiaries face an additional layer of costs through the Income-Related Monthly Adjustment Amount, known as IRMAA. In 2026, IRMAA surcharges apply to individuals with modified adjusted gross income above $106,000 (or $212,000 for married couples filing jointly, based on 2024 tax returns). At the highest income tier — individuals earning above $500,000 or couples above $750,000 — the total Part B premium reaches $628.90 per month in 2026. IRMAA also applies to Part D prescription drug coverage, adding between $13.70 and $85.80 per month on top of your plan's base premium depending on your income bracket. If your income dropped significantly since the tax year used to calculate your IRMAA — due to retirement, divorce, or the death of a spouse — you can request a reconsideration using IRS Form SSA-44, which allows Social Security to use more recent income data.

Prescription drug costs under Part D saw a structural change that took full effect in 2026 following the Inflation Reduction Act's phased implementation. The catastrophic coverage threshold — the point at which your out-of-pocket drug spending triggers near-zero cost sharing — is now tied to a redesigned benefit structure. In 2026, once a Part D enrollee's true out-of-pocket spending reaches $2,000, they pay nothing further for covered drugs for the rest of the calendar year. This $2,000 cap is a landmark change for beneficiaries who previously faced unlimited catastrophic-phase costs and represents one of the most significant improvements to the Part D benefit since the program launched in 2006. The Medicare Prescription Payment Plan, also active in 2026, allows beneficiaries to spread their out-of-pocket drug costs across monthly installments rather than paying large sums at the pharmacy counter early in the year.

For beneficiaries with limited income and assets, the Extra Help program (also called the Low Income Subsidy) continues to reduce or eliminate Part D premiums and cost-sharing in 2026. Individuals with annual income below roughly $22,590 (or couples below $30,660) may qualify. Enrollment is handled through the Social Security Administration at ssa.gov, and eligibility is automatically reviewed each year. Separately, the Medicare Savings Programs — administered by state Medicaid agencies — can pay your Part B premium, deductible, and coinsurance if you meet income thresholds. These programs are significantly underutilized; millions of eligible beneficiaries are not enrolled. Your State Health Insurance Assistance Program (SHIP) counselor can help you apply at no cost — find your local SHIP office at shiphelp.org.

If you have a Medigap policy, your 2026 costs depend heavily on which standardized plan letter you hold and your insurer's annual rate adjustment. Plan G, the most comprehensive option available to beneficiaries who became eligible for Medicare after January 1, 2020, covers the Part B excess charges, the Part A deductible, and all coinsurance — leaving you responsible only for the $257 Part B deductible. Plan N covers most of the same costs but requires copays of up to $20 for office visits and up to $50 for emergency room visits. Medigap premiums vary significantly by insurer, age, and geography, so comparing quotes annually through your state insurance department or a licensed broker can help identify whether a lower-cost plan with equivalent benefits is available to you. In most states, switching Medigap plans outside of your initial enrollment window requires medical underwriting, meaning insurers can charge more or deny coverage based on health conditions — making the timing of any switch an important decision.