The question are Medicare premiums going up in 2026 has become increasingly important for older Americans, especially retirees living on fixed incomes. Based on the latest government projections, Medicare Part B premiums and deductibles are expected to increase in 2026, while some Medicare Advantage and Part D prescription drug plan costs may remain stable or even decrease. Understanding these changes now can help beneficiaries plan ahead financially and make informed decisions during the annual enrollment period.
This report explains what is changing, why costs are rising, who will be most affected, and how seniors can prepare before the new rates take effect.
Table of Contents
Projected Increase in Medicare Part B Premiums
Medicare Part B covers outpatient medical care, including doctor visits, lab work, and outpatient therapies. Most seniors pay the standard monthly premium, which is deducted directly from Social Security benefits.
Current projections indicate the standard Medicare Part B premium in 2026 will increase to approximately $206.50 per month, up from around $185 in 2025. This represents one of the larger year-to-year increases in recent memory. The Part B annual deductible is also expected to rise to roughly $288 in 2026.
What This Means for Beneficiaries
- Higher monthly healthcare costs
- Slightly smaller net Social Security payment after deductions
- Increased out-of-pocket spending before Medicare coverage begins each year
For many seniors, even modest increases can affect budgeting and monthly household expense planning.
Why Part B Costs Are Increasing
Several factors are driving the projected rise in Medicare premiums for 2026:
1. Rising Healthcare Costs
Hospitals, clinics, medical device companies, and physician groups continue to experience higher costs due to staffing, equipment, and operational pressures. Medicare premiums must reflect these increases to maintain program funding.
2. Aging Population
The number of Americans entering Medicare continues to grow each year. As more beneficiaries use services, program funding needs rise.
3. More Outpatient Services
Medical care is increasingly shifting from hospitals to outpatient clinics, which falls under Part B. This increases the demand placed on the Part B system specifically.
4. Prescription Drug and Technology Costs
Even when seniors do not use advanced medical equipment or specialty medications, the system as a whole must fund modern treatments that come with higher price tags.
The result is steady upward pressure on premiums and deductibles each year.
Changes to Medicare Part A in 2026
Most Americans do not pay a premium for Medicare Part A, because it is earned through payroll taxes during working years. However, those who do pay premiums for Part A are also expected to see increases in 2026. Additionally, hospital deductibles and coinsurance costs under Part A are projected to rise modestly.
Key Part A Considerations
- Short hospital stays remain mostly covered.
- Stays longer than 60 days will require higher coinsurance payments.
- Skilled nursing facility coinsurance amounts are likely to increase as well.
Even though many seniors do not pay a monthly Part A premium, the increased cost of longer hospital stays could affect out-of-pocket budgeting.
Medicare Advantage and Part D: Some Good News
While Original Medicare costs are expected to rise, there is positive news for some beneficiaries.
Medicare Advantage (Part C)
Average monthly premiums for Medicare Advantage plans are projected to remain stable or slightly decrease. Many plans will continue to offer $0 monthly premiums, though costs vary by county and coverage level.
Medicare Part D (Prescription Drug Plans)
Average premiums for stand-alone Part D plans are projected to decrease slightly in 2026. This may offer relief to seniors who rely on prescription medication support.
However:
Even if monthly Part D premiums decline, medication formularies and annual out-of-pocket drug costs may still change. Beneficiaries should review their plan’s medication coverage each year.
How Increased Premiums Affect Social Security Payments
Most Americans have their Medicare Part B premium deducted directly from their Social Security benefit. When the premium rises, the net monthly benefit received may decrease, unless the annual Social Security cost-of-living adjustment (COLA) is high enough to offset the increase.
Projections currently suggest the 2026 COLA may be below 3%, meaning the Part B increase could consume most of that adjustment for many retirees.
Effect on Budgeting
- Some seniors may see little to no increase in their Social Security income.
- Those already managing tight monthly budgets may need to adjust spending in other areas.
- Planning early can prevent financial stress once new rates begin in January 2026.
High-Income Beneficiaries: IRMAA Surcharges Will Increase Too
Seniors with higher incomes pay more for Medicare Part B and Part D due to the Income-Related Monthly Adjustment Amount (IRMAA). As premiums rise, these surcharges also rise. Income thresholds are reviewed annually, and beneficiaries should be aware if their taxable income changes due to retirement withdrawals, pension distributions, or asset sales.
How to Prepare for the 2026 Medicare Changes
1. Review Your Current Medicare Coverage
Check whether Original Medicare, Medicare Advantage, or a Medigap supplemental plan provides the best cost-to-coverage ratio for your needs.
2. Compare Plans During Open Enrollment
Medicare’s annual open enrollment runs from October 15 to December 7.
This is the best time to:
- Switch plans
- Add or remove Part D coverage
- Move to Medicare Advantage or return to Original Medicare
3. Evaluate Prescription Drug Costs
Drug lists (formularies) can change yearly. Even if your plan premium decreases, your medication costs could increase.
4. Watch Your Social Security Notices
Your updated benefit amount and premium deductions will be reflected in your December Social Security statement.
5. Consider Tax Planning to Reduce IRMAA
Reducing taxable income before the year ends may help avoid higher Medicare surcharges.
Conclusion
So, are Medicare premiums going up in 2026?
Yes, the standard Medicare Part B premium and deductible are projected to increase, and some Part A costs may also rise. However, many Medicare Advantage and Part D plans may remain stable or become slightly cheaper, offering potential savings for beneficiaries who review and compare their options.
Understanding these changes now gives seniors the opportunity to prepare rather than be surprised when new premiums begin.
Feel free to share your thoughts, concerns, or questions below — your perspective can help others navigating the same decisions.