Every fall, the Centers for Medicare & Medicaid Services (CMS) announces the cost-sharing figures that will govern what Medicare beneficiaries pay in the coming year. For 2026, those numbers have moved upward across nearly every category — Part B premiums, Part A deductibles, and income-related surcharges. Understanding exactly what you'll owe, and why, can help you budget accurately and avoid surprises when your first Explanation of Benefits arrives in January.
The standard monthly Part B premium in 2026 is $185.00, up from $174.70 in 2025 — an increase of roughly $10.30 per month, or about $124 per year. For most beneficiaries, this amount is automatically deducted from their Social Security check, so your net deposit will be smaller starting in January. Part B covers outpatient care: doctor visits, lab work, preventive screenings, durable medical equipment, and most services you receive outside a hospital. The annual Part B deductible in 2026 is $257, up from $240 in 2025. Once you meet that deductible, Medicare typically covers 80% of approved costs, leaving you responsible for the remaining 20% — with no out-of-pocket cap under Original Medicare alone, which is a key reason many beneficiaries pair Part B with a Medigap supplemental policy.
On the hospital side, the Part A inpatient deductible — what you pay for each benefit period before Medicare kicks in — rises to $1,676 in 2026, compared to $1,632 in 2025. This deductible is not annual; it resets with each new benefit period, which begins when you're admitted to a hospital and ends after you've been out of the hospital or skilled nursing facility for 60 consecutive days. That means a beneficiary who has two separate hospitalizations in a year could owe this deductible twice. Coinsurance for longer hospital stays also increases: days 61–90 cost $419 per day in 2026 (up from $408), and lifetime reserve days cost $838 per day. For skilled nursing facility stays, the first 20 days remain fully covered by Medicare, but days 21–100 carry a daily coinsurance of $209.50 in 2026, up from $204.00 in 2025.
Beneficiaries with higher incomes pay more for both Part B and Part D through what's called the Income-Related Monthly Adjustment Amount, or IRMAA. These surcharges are based on your modified adjusted gross income (MAGI) from two years prior — so your 2026 premiums are based on your 2024 tax return. For 2026, the IRMAA tiers for individuals start at incomes above $106,000 (or $212,000 for married couples filing jointly). At the highest income tier — individuals earning more than $500,000 or couples above $750,000 — the total Part B premium can reach $628.90 per month. If you had a significant income drop due to retirement, divorce, or the death of a spouse, you can file Form SSA-44 with the Social Security Administration to request that CMS use a more recent year's income instead. This is worth doing promptly if your circumstances changed.
Part D prescription drug coverage costs vary by plan, but the landscape in 2026 includes a meaningful consumer protection: the $2,000 annual out-of-pocket cap on drug costs, which took effect in 2025 under the Inflation Reduction Act, remains in place. This cap applies to drugs covered under your Part D plan and means that once you've spent $2,000 on covered prescriptions in a calendar year, you pay nothing more for the rest of the year. The catastrophic coverage threshold that previously required beneficiaries to spend thousands before relief kicked in is effectively replaced by this hard cap — a significant change for people on expensive specialty medications.
If you're on a fixed income and struggling with these costs, two programs can help. Medicare Savings Programs (MSPs), administered by state Medicaid agencies, can pay your Part B premium and in some cases your deductibles and coinsurance. The Extra Help program (also called the Low-Income Subsidy) can dramatically reduce Part D drug costs. Eligibility thresholds for both programs were expanded in recent years, so even if you were turned down before, it's worth reapplying. You can start the Extra Help application at SSA.gov or call 1-800-772-1213. For MSPs, contact your state Medicaid office or call 1-800-MEDICARE.
For beneficiaries enrolled in Medicare Advantage (Part C) rather than Original Medicare, these specific cost figures may not apply directly — your plan sets its own deductibles, copays, and out-of-pocket maximums within CMS guidelines. However, you still pay the Part B premium regardless of whether you're in Original Medicare or a Medicare Advantage plan. If you're weighing whether to stay in Original Medicare or switch to an Advantage plan during the Open Enrollment Period (January 1–March 31, 2026), comparing total potential out-of-pocket exposure — not just monthly premiums — is the most important calculation you can make.