2026 Medicare Update

Each year, the Centers for Medicare & Medicaid Services (CMS) updates Medicare premiums, deductibles, and coinsurance amounts. These numbers can have a real impact on retirees’ budgets, so it’s important to know what’s changing for the upcoming year.

For 2026, most parts of Medicare will see modest increases in costs due to inflation and rising healthcare expenses. Below, we’ll break down the new numbers for Parts A, B, C, and D and explain what these changes mean for you.

Medicare Part A Costs for 2026

Medicare Part A covers inpatient hospital care, skilled nursing facility care, hospice care, and some home health services. Most people (99% of all beneficiaries) do not pay a premium for Part A because they or their spouse paid Medicare taxes for at least 10 years.

Here’s what’s changing in 2026:

• Part A Premium: Most beneficiaries continue to pay $0. However, for those who haven’t worked long enough to qualify for premium-free Part A, the full monthly premium in 2026 is $565, up $47 from 2025. Those who have worked at least 30 quarters (but not the full 40), will pay $311 per month, up $26 from 2025.

• Inpatient Hospital Deductible: The deductible you pay when admitted to the hospital will be $1,736 in 2026, an increase of $60 from 2025. This deductible covers your first 60 days of hospital care.

• Coinsurance for Hospital Stays:

  • Days 61–90: $434 per day (up from $419 in 2025).

  • Lifetime Reserve Days (after day 90): $868 per day (up from $838 in 2025).

• Skilled Nursing Facility (SNF) Coinsurance: After the first 20 days of SNF care, beneficiaries will pay $217 per day for days 21–100 in 2026 (up from $209.50 in 2025).

These increases are relatively small, but they can add up, especially for those with extended hospital or rehabilitation stays.

Medicare Part B Costs for 2026

Medicare Part B helps cover doctor visits, outpatient services, lab tests, preventive care, and durable medical equipment. Most beneficiaries pay a monthly premium for Part B, and both the premium and deductible change each year.

• Standard Part B Premium (2026): $202.90 per month, up from $185 in 2025.

• Part B Annual Deductible (2026): $283, up from $257 in 2025.

After meeting the deductible, beneficiaries typically pay 20% of the Medicare-approved amount for covered services.

IRMAA Surcharges for Higher Incomes

Individuals with higher incomes pay more for Part B through the Income-Related Monthly Adjustment Amount (IRMAA). These surcharges apply if your modified adjusted gross income (MAGI) is above $109,000 (individual) or $218,000 (joint) based on your 2024 tax return. Surcharges range from $81.20 to $487 per month.

The IRMAA brackets are adjusted annually, so some beneficiaries may see changes even if their income remains stable.

Medicare Part D Costs for 2026

Medicare Part D provides prescription drug coverage through private insurance companies. Costs vary by plan, but CMS publishes standard figures that affect all plans, including the deductible limit and national base premium.

Here’s what’s new for 2026:

• National Base Beneficiary Premium: $38.99, up from $36.78 in 2025.

• Maximum Part D Deductible: $615, up from $590 in 2025.

• Catastrophic Coverage: Beginning in 2025, the catastrophic coverage phase was eliminated as part of the new Medicare prescription drug redesign. In 2026, beneficiaries will continue to benefit from the $2,100 annual out-of-pocket spending cap on covered drugs.

IRMAA for Part D

As with Part B, higher-income beneficiaries pay an additional monthly amount for Part D coverage. The exact amount depends on income level and is paid directly to Medicare, not to the insurance company. Surcharges range from $14.50 to $91 per month.

Plan Costs Can Still Vary

Even with national averages, each Part D plan sets its own premium, formulary, and pharmacy network. That’s why it’s important to review your Annual Notice of Change (ANOC) and compare options each fall.

Medicare Advantage (Part C) Costs for 2026

Medicare Advantage plans are offered by private insurance companies that contract with Medicare to provide Part A and Part B benefits and often include drug coverage and extra perks.

While the average Medicare Advantage premium for 2026 is expected to be around $11.50 per month (a decrease from $13.32 in 2025), many plans continue to offer $0 premiums.

However, it’s important to remember:

• Out-of-pocket costs like copays and coinsurance can vary significantly between plans.

• Each plan has a maximum out-of-pocket (MOOP) limit. The CMS cap for 2026 is $9,250 (a decrease from $9,350 in 2025), though many plans set lower limits.

• Premiums, provider networks, and drug coverage can change each year.

Because costs and coverage vary so widely, it’s smart to compare your options annually to ensure your plan still fits your healthcare and financial needs.

Why These Changes Matter to You

Even small annual increases can make a noticeable difference in your healthcare spending, especially if you’re on a fixed income. Understanding the new numbers helps you plan ahead and avoid unexpected expenses.

The good news is that beneficiaries have choices. Whether through a Medigap plan that helps cover out-of-pocket costs or a Medicare Advantage plan with built-in extras, the right coverage can help manage these annual increases.