Medicare costs are rising significantly in 2026, with the Part B premium breaking the $200 barrier for the first time in the program’s history. If you have not reviewed your Medicare costs recently, this guide covers every major change and three proven strategies to keep more money in your pocket.
9 Medicare Cost Increases in 2026
1. Part B Premium: $202.90/Month (Up $17.90)
The standard Medicare Part B monthly premium rises to $202.90 in 2026 — the first time it has exceeded $200. Higher-income beneficiaries pay more via IRMAA surcharges, ranging up to $628.90/month for those earning above $500,000/year. This affects doctor visits, outpatient care, lab tests, and durable medical equipment.
2. Part B Annual Deductible: $283 (Up $26)
You pay the first $283 before Medicare Part B coverage begins each year. This applies to most outpatient services including doctor visits, preventive screenings, and diagnostic tests.
3. Part A Inpatient Deductible: $1,736 Per Benefit Period (Up $60)
If hospitalized, you pay $1,736 before Part A covers hospital costs. This is per benefit period — not per calendar year — so multiple hospitalizations with separate benefit periods could trigger multiple deductibles.
4. Part D Deductible: Up to $615 (Up $25)
Most Part D prescription drug plans now charge the maximum $615 deductible before covering brand-name and specialty medications.
5. Part D Annual Out-of-Pocket Cap: $2,100 (Up $100)
Medicare’s landmark drug cost cap rises to $2,100 in 2026. Once you reach this threshold, all covered prescription drugs cost $0 for the rest of the year. Despite the slight increase, this cap remains a crucial protection for seniors on high-cost medications.
6. Skilled Nursing Facility Days 21–100: $200/Day (Up $9.50)
Extended skilled nursing facility stays beyond the first 20 covered days now cost $200 per day — a significant cost for seniors recovering from surgery or serious illness.
7. Hospital Coinsurance Days 61–90: $434/Day (Up $15)
Extended inpatient hospital stays beyond 60 days require a $434 daily coinsurance payment, up from $419 in 2025.
8. Medicare Advantage Supplemental Benefit Reductions
The percentage of Medicare Advantage plans offering over-the-counter allowances dropped from 72% to 66% in 2026. Fitness benefits, dental coverage limits, and meal delivery benefits are also being reduced across many plans — without corresponding premium decreases.
9. IRMAA Threshold Changes
Income thresholds for the Income-Related Monthly Adjustment Amount (IRMAA) shifted for 2026. Seniors whose income just avoided surcharges in 2025 may now owe additional Part B and D premiums of $69.90–$425.90/month based on two-year-old tax data.
3 Proven Ways to Reduce Your Medicare Costs in 2026
1. Apply for Medicare Extra Help (Low Income Subsidy)
If your annual income is below approximately $23,000 (single) or $31,000 (married), you may qualify for Extra Help — a federal program that pays most or all of your Part D premium, deductible, and drug copays. An estimated 1 million eligible seniors are not enrolled. Apply free at ssa.gov/extrahelp or call 1-800-772-1213.
2. Enroll in a Medicare Savings Program
Medicare Savings Programs (MSPs) are state-run programs that pay Part B premiums, deductibles, and coinsurance for eligible low-income seniors. Four MSP levels exist: QMB, SLMB, QI, and QDWI. Contact your State Health Insurance Assistance Program (SHIP) for free, unbiased help enrolling — find your SHIP at shiphelp.org.
3. Compare Plans Every Fall During AEP
The Annual Enrollment Period (October 15 – December 7) is your annual opportunity to switch Medicare Advantage or Part D plans. Use Medicare.gov/plan-compare to enter all your doctors and medications for a personalized cost comparison. Many seniors save $500–$2,000/year by switching to a better-matched plan.
Sources
