The question are Medicare premiums going up in 2026 is becoming increasingly important for seniors, caregivers, and families planning medical expenses for the coming year. Based on current federal projections and cost trends within the Medicare system, the answer is yes— Medicare Part B premiums, along with certain deductibles and cost-sharing amounts, are expected to rise in 2026. These increases come as Medicare continues to adjust to higher healthcare costs, an aging population, and the ongoing expansion of outpatient and specialty medical services.
For millions of Americans who rely on Medicare, especially those on fixed or limited incomes, understanding these cost adjustments early is essential for budgeting and financial planning. This expanded article takes a closer look at expected cost changes, the reasons behind them, and steps individuals can take to prepare.
Overview: What’s Expected to Increase in 2026
While all parts of Medicare are not increasing at the same rate, there are notable shifts that will affect most beneficiaries:
- Medicare Part B monthly premiums are projected to rise.
- The yearly deductible for Part B is expected to increase.
- Some hospital cost-sharing under Part A will also rise, especially for extended inpatient stays.
- Medicare Advantage and Part D prescription plan premiums may see more stability, with many plans projected to remain the same or become slightly more competitive.
The most visible and widely felt change will be in Part B, which covers outpatient care, physician services, preventive care, and durable medical equipment.
Expected Medicare Part B Premium Increase in 2026
The standard Medicare Part B monthly premium is projected to increase to around $206.50 per month in 2026, compared to roughly $185 in 2025. That represents an approximate increase of about $21 to $22 per month, or more than $250 over the course of the year.
Additionally, the Part B deductible is projected to rise to about $288, meaning beneficiaries will need to pay more out of pocket before Medicare begins covering services.
Why This Matters
For most retirees, the Part B premium is automatically deducted from monthly Social Security benefits. Even if Social Security receives a cost-of-living adjustment (COLA) in 2026, a notable portion of that increase may be offset by the higher Medicare premium.
Why Are Medicare Part B Costs Rising?
Several financial and demographic pressures are contributing to the projected premium increase:
1. Higher Medical Service Costs
Hospitals, clinics, and physician networks are experiencing increased operating expenses. Labor shortages, medical supply inflation, and technology upgrades all contribute to higher overall service costs.
2. Increased Use of Outpatient Services
A growing percentage of medical care is now delivered outside of hospitals, which falls under Part B. Imaging, cancer care, orthopedic procedures, and chronic disease management are increasingly outpatient-focused.
3. The Aging U.S. Population
More Americans are turning 65 each year, increasing overall enrollment in Medicare. As the number of beneficiaries grows, program funding must scale to support increased demand.
4. Specialty Drugs and Biologic Treatments
Medications for autoimmune disorders, cancer, and rare diseases often require infusion or physician administration, which falls under Part B coverage. These treatments are often expensive and significantly influence Medicare spending.
These combined factors make a Part B increase in 2026 both expected and structurally difficult to avoid.
What’s Changing With Medicare Part A
Most individuals do not pay monthly premiums for Part A, because the majority of Americans qualify for premium-free hospital insurance through work history and payroll contributions. However, Part A deductibles and coinsurance amounts are expected to rise in 2026.
Projected Changes Include:
- A higher inpatient hospital deductible (this applies per hospital benefit period).
- Increased daily coinsurance charges for hospital stays lasting more than 60 days.
- Higher coinsurance rates for skilled nursing facility care after day 20 in a benefit period.
These changes affect beneficiaries who require hospital stays or complex recovery care.
Medicare Advantage (Part C) Outlook for 2026
One of the bright spots in the 2026 Medicare cost landscape is Medicare Advantage, which is expected to maintain competitive pricing and benefit offerings.
Many Medicare Advantage plans:
- Will continue offering $0 monthly premiums (not including Part B premium).
- May include additional benefits such as dental, vision, hearing, fitness memberships, transportation, and wellness support.
- Are expected to continue improving care coordination programs.
However, coverage rules, networks, and medication lists can vary widely from one plan to another. Beneficiaries should still compare plans carefully during open enrollment.
Medicare Part D Prescription Drug Plans in 2026
The cost outlook for Part D is more favorable for many enrollees. Average premiums for stand-alone Part D plans are projected to decrease slightly in 2026. Additionally, ongoing reforms related to senior prescription cost caps are helping limit out-of-pocket spending for medications.
However:
- Drug formularies (lists of covered drugs) may change.
- Copayment tiers and pharmacy network pricing may shift.
- Brand-name drug out-of-pocket costs continue to vary significantly.
Beneficiaries with chronic medication needs should review drug coverage annually.
How Social Security Will Be Affected
Because Part B premiums are deducted directly from Social Security payments, increased premiums can directly reduce the net monthly benefit for retirees.
If Social Security’s annual cost-of-living adjustment is close to or below 3%, many individuals may see only a small net increase—or potentially no increase at all—once premiums are deducted.
For retirees living on fixed incomes, this may require adjusting household budgeting or reviewing healthcare plan options for cost efficiency.
Impact for Higher-Income Beneficiaries (IRMAA)
Individuals with higher taxable incomes will pay additional monthly surcharges through the Income-Related Monthly Adjustment Amount (IRMAA). As base premiums rise, IRMAA adjustments also rise.
Anyone who withdraws money from retirement accounts, sells investment property, or receives pension distributions should be aware that these income-related costs may increase in 2026 as well.
How Seniors Can Prepare for 2026 Changes
1. Review Your Current Medicare Plan
Even if you are satisfied with your current plan, changes in coverage or pricing may make it worthwhile to compare alternatives.
2. Use Open Enrollment Wisely
Open Enrollment runs October 15 – December 7 each year. Changes made during this period take effect in January.
3. Consider Medicare Advantage Carefully
For some seniors, Medicare Advantage plans offer lower total costs. For others, network limitations or referral requirements may be restrictive. Evaluate your health needs realistically.
4. Evaluate Prescription Coverage Annually
Even small shifts in drug pricing can result in large yearly cost differences.
5. Review Your Social Security Benefit Statement
This is where the new premium deductions will be reflected. Understanding your net benefit can help with monthly budgeting.
Conclusion
So, are Medicare premiums going up in 2026?
Yes, Medicare Part B premiums and deductibles are expected to increase, and some Part A-related costs will also rise, particularly for hospital stays. However, Medicare Advantage and Part D plan premiums may remain stable or decrease slightly, offering options for those willing to review and compare their coverage choices.
Planning early, staying informed, and understanding how premiums interact with Social Security benefits can help seniors adapt smoothly to these upcoming changes.
If you found this helpful or have concerns about how these increases may affect you personally, feel free to share your experience or questions below—your insight may help someone else navigating the same decisions.