WHAT MEDICARE WILL COST IN 2026

Michael T. Braden December 20, 2025 MEDICARE 101

WHAT YOU NEED TO KNOW ABOUT MEDICARE IN 2026

WHAT WILL MEDICARE COST IN 2026

(CMS), The Centers for Medicare & Medicaid Services recently released its cost estimates for Medicare in the 2026 Plan Year. This article provides a brief recap of key information everyone needs to know about Medicare for 2026.

Understanding the wonderful, wacky world of Medicare can often feel overwhelming, especially when the costs change each year. Understanding these adjustments is essential for budgeting and ensuring appropriate coverage for your healthcare needs.

WHAT WILL MEDICARE COST IN 2026

WHAT COSTS ARE COVERED BY 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 COSTS IN 2026

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 $217.00 per day.

  
  
  
  

MEDICARE PART B COSTS IN 2026

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 $185.00 monthly premium in 2025.

• Annual Deductible: The 2026 annual 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.

  
  
  
  

MEDICARE SUPPLEMENT COSTS FOR 2026

Those potential Part A and Part B costs—like the $1,736 hospital deductible and the unlimited 20% Part B coinsurance—are why many people choose a Medicare Supplement (Medigap) plan.

Medigap plans are sold by private insurance companies and are designed specifically 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.

MEDICARE ADVANTAGE, AKA MEDICARE PART C

Everyone should understand all of their 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 (prescription drug coverage) into one plan. These are also referred to as "All-In-One plans". 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. These plans are also sold by private insurers, and the premiums vary from State to State and County to County.

  
  
  
  

CAN YOUR INCOME AFFECT WHAT YOU PAY FOR MEDICARE?

Your monthly Medicare premiums may be higher based on your income. This is referred to as 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 starts for individuals with a 2024 MAGI over $109,000 and for couples filing jointly with a 2024 MAGI over $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.

DO MEDICARE PREMIUMS AND DEDUCTIBLES CHANGE EVERY YEAR?

If you are new to Medicare, you might be wondering if these costs increase 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.

IDEAS TO MINIMIZE YOUR OUT-OF-POCKET COSTS

Seeing these 2026 cost increases can be concerning, but you have options to manage them.

1. 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.

2. 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.

3. 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.

   
   

Understanding these new 2026 costs is the first step. The next step is to ensure your coverage provides the financial security you deserve.

If you are worried about the $1,736 hospital deductible or the uncapped 20% coinsurance on Part B, a Medicare Supplement plan can help.

WRAPPING THINGS UP

Each year in the Fall, just before the Medicare Annual Enrollment Period begins, we begin to hear projections of any cost increases or primary rule or regulatory changes for the upcoming Medicare Calendar Year/Plan Year. These changes are never "Official" until CMS (The Centers for Medicare & Medicaid Services) releases the information. While it is true that every time the COLA (Cost Of Living Adjustment) increases for Social Security, Medicare Increases eat up most of the increase.

While Medicare costs rise more than they decrease from year to year, these increases are very slight and manageable compared with those we are used to seeing in the under-65 Health Market.

If you have a Medicare question that you cannot find an answer to, please feel free to email Michael directly at mike@bradenmedicare.com.

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