The cost of medicare part b 2026 has become one of the most important financial topics for Americans approaching retirement or already enrolled in Medicare. As healthcare costs continue to rise and enrollment grows, the monthly premiums and related charges for Medicare Part B are changing in ways that will affect millions of people across the United States.
In 2026, the standard monthly cost for Medicare Part B is rising significantly compared with previous years. This increase is based on projected healthcare spending, utilization trends, and statutory requirements for determining premiums under the Medicare program. Every year, the federal agency responsible for Medicare sets these rates according to a complex formula that balances program sustainability with policy goals.
Understanding how this cost structure works, who pays what amounts, and what special income-based adjustments apply is essential for retirees and those planning financial decisions tied to health coverage and retirement timing. As these changes take effect, they influence budgets, Social Security benefits, and decisions about supplemental coverage.
Standard Monthly Premiums Rise Substantially in 2026
For 2026, the official standard monthly premium for Medicare Part B has been set at $202.90. This figure represents an increase of $17.90 over the 2025 standard rate of $185.00. In percentage terms, this change is nearly a 10 percent rise from the previous year. It marks one of the larger annual premium increases in recent history and reflects expected higher costs for outpatient care, doctor services, and clinical procedures under Medicare’s Part B coverage.
Part B premiums are tied to projected program costs, and the methodology requires that such projections be based on a national estimate of what average costs will be for enrollees aged 65 and older. These projected costs help determine the standard monthly premium that most beneficiaries will pay. In 2026, this rate will apply to the majority of Medicare enrollees who qualify for Part B without paying additional charges based on income.
How Income Influences Part B Costs for Higher Earners
While many beneficiaries will pay the standard monthly premium, a portion of enrollees will face higher costs due to income-related adjustments. These adjustments are applied to people whose modified adjusted gross income from two years earlier exceeds specified thresholds. In 2026, these income levels begin at more than $109,000 for individual filers and $218,000 for couples filing jointly.
When income exceeds these thresholds, an additional monthly charge is added to the base premium. Known as the income-related monthly adjustment amount, this additional cost increases in stages as income rises. In 2026, people in the lowest income surcharge tier pay a Part B total premium of about $284.10 per month. This figure includes the standard $202.90 plus an approximate $81.20 income adjustment.
For individuals with higher income, the total cost rises through multiple tiers. For example, moderate-income earners may pay more than $400 monthly, while those in the highest income bracket — individuals earning $500,000 or more, or couples earning $750,000 or more — will have a total monthly premium of $689.90 when income adjustments are included. These income-related charges reflect policy decisions to have higher earners contribute more to the financing of Medicare Part B.
Annual Deductible Is Increasing Too
In addition to premium changes, the annual deductible for Medicare Part B is rising in 2026. The deductible is the amount that beneficiaries must pay out of pocket before Medicare begins to share the cost of covered services. For 2026, the Part B deductible has been set at $283, up from $257 in 2025.
This deductible applies to all beneficiaries regardless of income level or premium amount. Once the deductible is met, Medicare typically covers 80 percent of approved costs for Part B services, leaving beneficiaries responsible for the remaining 20 percent unless they have supplemental coverage like Medigap or certain Medicare Advantage plans that cover these cost shares.
How Part B Coverage Works and What It Includes
Medicare Part B covers a range of outpatient medical services. This includes doctor visits, outpatient procedures, preventive care, durable medical equipment such as wheelchairs or oxygen supplies, certain home health services, and other medically necessary services not covered by Medicare Part A.
Part B does not cover hospital stays, custodial care in a long-term care facility, or most prescription drugs. Those who need prescription drug coverage can enroll in Medicare Part D plans, which have their own premiums and deductible structures. Like Part B, Part D plans may also have income-related monthly adjustments for higher earners.
How Premiums Are Withheld for Many Beneficiaries
For many Medicare enrollees, Part B premiums are automatically deducted from their monthly Social Security benefit checks. This withholding happens before beneficiaries receive the net amount of their Social Security payment, making the premium increase directly visible in the amount they see deposited into their bank account.
Because most beneficiaries begin Social Security at or around the same time they first enroll in Medicare Part B, this deduction system helps simplify premium payment. For those not yet receiving Social Security benefits, premium bills for Part B are sent directly, typically on a quarterly or monthly basis.
The Proportion of Beneficiaries Who Pay the Standard Premium
The standard Part B premium applies to the vast majority of beneficiaries whose income falls below the threshold for income-related adjustments. Approximately 92 percent of enrollees pay only the base $202.90 premium in 2026 without additional income-related charges. This includes individuals and couples whose incomes fall at or below the specified limits for the year.
Those above the thresholds are part of an estimated eight percent of Medicare Part B beneficiaries who pay higher monthly costs due to income-related adjustments. These individuals often include people with significant investment income, retirement account withdrawals, or other taxable income beyond Social Security.
Income Thresholds and How They Apply
Income thresholds used for applying additional monthly charges are based on federal tax returns filed two years before the coverage year. This means 2024 income figures shape premium costs in 2026. Even modest increases in income reported on tax returns — such as realized capital gains or larger retirement withdrawals — can push a beneficiary into a higher income tier and lead to increased Medicare costs.
Thresholds are adjusted annually for inflation, except for the highest income bracket which has a statutory freeze on inflation indexing through 2028. This freeze means that over time, more taxpayers may become subject to higher monthly charges as income brackets fail to expand as quickly as overall income growth.
The Combined Effect of Premiums and Deductibles on Your Budget
When planning for healthcare costs, beneficiaries must consider both monthly premiums and the annual deductible together. For 2026, a person paying only the standard premium will owe just over $2,400 for the year in Part B premiums alone, plus the $283 deductible if they receive Part B-covered services.
Those facing income-related adjustments may pay significantly more. For example, someone in one of the higher income tiers may spend close to or more than $8,000 annually in Part B premiums before even accounting for coinsurance and additional out-of-pocket costs.
How Higher Premiums Can Affect Social Security
Because Part B premiums are often deducted from Social Security checks, increases in these healthcare costs can offset a portion of the annual cost-of-living adjustment (COLA that retirees receive to help keep up with inflation. In 2026, the COLA for Social Security is smaller than the rise in Part B premiums, meaning many beneficiaries will see a portion of their increase absorbed by higher healthcare costs.
This dynamic has significant implications for retirement income planning, especially for those relying heavily on Social Security as their primary source of monthly funds.
Who Might Be Affected by Income-Related Adjustments
Income-related adjustments apply broadly to those whose modified adjusted gross income from two years prior exceeds the set limits. This includes retirees with significant distributions from retirement accounts, investment returns, rental income, and other taxable sources.
For married couples filing separately, there are separate rules and thresholds, which also trigger income-related surcharges at different levels. In some cases, couples who file separately but lived together may find themselves in higher tiers because the thresholds for separate filers are narrower.
How This Changes Long-Term Retirement Planning
For those planning retirement, anticipating future healthcare costs is essential. Because Medicare Part B premiums and deductibles rise with broader healthcare costs, budgeting for those expenses years in advance helps preserve savings and ensures more predictable financial outcomes.
Some financial strategies encourage spreading taxable income more evenly, timing retirement account withdrawals, or managing investment income to avoid being pushed into higher income tiers when Medicare premiums are determined. Although not every retiree will be able to lower their income sufficiently to stay below surcharge thresholds, awareness of these rules can help with broader retirement planning.
The Importance of Supplemental Coverage for Many Beneficiaries
Many Medicare beneficiaries choose supplemental insurance to reduce out-of-pocket costs not covered by Part B. Medigap policies, for example, can help pay coinsurance, deductibles, and other cost-sharing requirements.
Part D prescription drug plans can also offer important coverage for medications, and these plans come with their own premiums. Both supplemental and drug coverage can provide financial predictability and reduce exposure to high out-of-pocket costs, especially as healthcare needs grow with age.
Health Care Costs Continue to Rise Nationwide
The rise in Medicare Part B premiums reflects broader trends in national healthcare spending. As more services are delivered outside of hospital settings and as medical technology evolves, outpatient costs grow with them. These systemic changes are a primary factor in yearly premium adjustments and underline the importance of planning for higher healthcare expenditures as part of retirement.
As healthcare costs evolve and premiums remain a significant part of retirement finances, many Americans are paying closer attention to how Medicare pricing affects their overall financial picture—share your experiences or continue following as these changes unfold.