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MEDICARE RELEASES PREMIUM COSTS FOR 2026
- Michael Braden
- Jan 11
- 5 min read
Michael T. Braden January 1, 2026 MEDICARE 101
MEDICARE JUST RELEASED THEIR PREMIUM COSTS FOR 2026
Navigating the world of Medicare can sometimes feel overwhelming, especially when the costs change each year. Understanding these adjustments is essential for budgeting and
The official 2026 numbers have been released by the Centers for Medicare & Medicaid Services (CMS). We are here to walk you through these new costs, explain what they mean for you, and show you how to manage them effectively.
COSTS COVERED UNDER MEDICARE
When we talk about “Medicare costs,” we are generally referring to a few different types of payments you might make:
Premium: A fixed amount you pay each month for your coverage (like Medicare Part B).
Deductible: The amount you must pay for healthcare services before Medicare begins to pay its share.
Coinsurance: The percentage of the cost you pay for a service after you have met your deductible.
Copayment: A fixed dollar amount you pay for a service (familiar with Medicare Advantage and Part D plans).
MEDICARE PART A
Medicare Part A, which covers inpatient hospital stays, skilled nursing facility care, and hospice care, is often referred to as “premium-free.”
Most people do not pay a monthly premium for Part A. This is true if you or your spouse paid Medicare taxes for at least 10 years (or 40 quarters) while working.
However, Part A does have costs related to its services:
Inpatient Hospital Deductible: In 2026, the Part A deductible for each hospital benefit period is $1,736. This is an increase of $60 from $1,676 in 2025. You must pay this amount when admitted to the hospital.
Hospital Coinsurance: After your deductible is met, you pay $0 for the first 60 days.
Days 61-90: $434 per day
Lifetime Reserve Days (Days 91+): $868 per day
Skilled Nursing Facility Coinsurance: For days 21-100 of care, your cost will be $217 per day.
MEDICARE PART B
Medicare Part B covers doctor visits, outpatient services, preventive care, and durable medical equipment. These are the costs that most beneficiaries will see in their monthly budget.
Standard Monthly Premium: The 2026 standard Part B premium is $202.90 per month. This is a significant increase from the $185 monthly premium in 2025.
Annual Deductible: The 2026 yearly Part B deductible increased from $257 to $283. This is the amount you must pay for outpatient services before Part B begins to pay.
Coinsurance: After you meet the $283 deductible, you are typically responsible for 20% of the Medicare-approved amount for most services. This 20% has no annual limit.
2026 MEDICARE SUPPLEMENT PLANS
Those potential Part A and Part B costs—such as the $1,736 hospital deductible and the unlimited 20% Part B coinsurance—are why many people choose a Medicare Supplement plan, also known as a Medigap plan.
Private insurance companies sell Medigap plans and are explicitly designed to “fill in the gaps” left by Original Medicare. You pay a separate monthly premium for your Medigap plan. In return, the plan covers many or all of your out-of-pocket costs.
For example, popular plans like Medigap Plan G will pay for your Part A deductible, your Part A coinsurance, and—most importantly—your 20% Part B coinsurance.
By paying a predictable monthly premium for a Medigap plan, you protect yourself from large, unexpected medical bills. This makes budgeting for healthcare much simpler and provides invaluable peace of mind.
2026 MEDICARE ADVANTAGE & MEDICARE PART D
It is essential to know about all your options:
Medicare Part C (Medicare Advantage): These plans are an alternative to Original Medicare, offered by private companies. You must still pay your Part B premium. These plans bundle Part A, Part B, and often Part D (drug coverage) into a single plan. They have their own cost structures with copayments and networks. For 2026, the average monthly premium for these plans is projected to decrease slightly. The maximum out-of-pocket limit for Part C plans in 2026 will be $9,250.
Medicare Part D (Prescription Drug Coverage): This is your standalone coverage for prescription drugs. Private insurers also sell these plans, and their costs vary widely.
DID YOU KNOW YOUR INCOME CAN AFFECT YOUR PREMIUMS
Your monthly Medicare premiums may be higher based on your income. This is called the Income-Related Monthly Adjustment Amount (IRMAA).
This surcharge applies to individuals and couples with higher earnings. For 2026, IRMAA is based on your Modified Adjusted Gross Income (MAGI) from your 2024 tax return.
The adjustment begins for individuals with a 2024 MAGI exceeding $109,000 and for couples filing jointly with a 2024 MAGI exceeding $218,000. If your income falls into this range, the Social Security Administration will add a surcharge to both your Part B and Part D premiums.
For example, an individual with a 2024 MAGI between $109,001 and $137,000 will pay an extra $81.20 per month for Part B, for a total monthly premium of $284.10.
2026 MEDICARE IRMAA BRACKETS
MEDICARE SEEMS TO RAISE ITS RATES EACH YEAR. WHY?
Most people wonder why Medicare raises their costs every year.
The federal government sets the premiums and deductibles for Medicare Part A and Part B.
They are adjusted annually based on several factors, including:
Overall Healthcare Costs: The rising prices of medical services, treatments, and technologies.
Program Spending: The adjustments must cover the projected costs for all Medicare beneficiaries in the coming year.
Drug Costs: CMS has noted that rising spending on physician-administered drugs is a key driver of Part B premium increases.
TIPS TO REDUCE YOUR MEDICARE-RELATED OUT-OF-POCKET COSTS
HERE IS WHAT EVERY MEDICARE BENEFICIARY SHOULD DO EVERY YEAR
Review Your Coverage Annually: The Annual Enrollment Period (AEP) each fall is the perfect time to review your Part D or Medicare Advantage plan to ensure it still meets your needs and budget.
Enroll in a Medigap Plan: If you have Original Medicare, the most effective way to manage unpredictable costs is to enroll in a Medicare Supplement (Medigap) plan. By covering the Part A deductible and the 20% Part B coinsurance, a Medigap plan provides a powerful buffer against rising healthcare expenses.
Check for Assistance Programs: You may be eligible for a Medicare Savings Program (MSP) or Extra Help, which can assist with paying premiums, deductibles, and prescription drug costs.
WRAPPING THINGS UP
We hope you found this Article detailing the new Medicare costs for 2026 helpful and informative. If you ever have any Medicare questions and are unsure who to contact, please reach out to us anytime. You can email me at mike@bradenmedicare.com, use the Contact Us page on our website at www.bradenmedicare.com, or call or text me at (480) 225-1393 at your convenience.
