From Solomon, Steiner & Peck
If you’re on Medicare, you’ve noticed something different for 2026: Your costs are higher, both for what you pay for the coverage and for deductibles.
Here’s a summary from the Centers for Medicare & Medicaid Services :
- The standard Medicare Part B monthly premium will increase to $202.90 (up $17.90), exceeding $200 for the first time, and the annual Part B deductible will rise to $283 (up $26).
- The Part A deductible for inpatient hospital stays will also increase to $1,736 (up $60).
These increases are attributed to projected price changes and growing demand for health care services, reflecting overall rising medical costs.
The higher costs mean a greater financial burden on older adults and retirees, particularly those on fixed incomes, potentially consuming much of any Social Security cost-of-living adjustment (COLA). Older adults are advised to review their health needs, explore supplemental coverage like Medigap, budget carefully for healthcare expenses, and compare options, such as Medicare Advantage plans.
Most people who are enrolled in Medicare Part A (generally inpatient services) have met the 40 work quarters minimum and don’t have to pay a premium. However, premiums will increase for those who have to pay them.
The maximum deductible for a Medicare Part D drug plan in 2026 will be $615 (up from $590 in 2025). In short, both the recurring costs (premiums) and up-front costs (deductibles) for key parts of Medicare are increasing.
Why the Increase?
According to the CMS, the increases stem from projected price changes and assumed increases in Medicare benefits usage that are consistent with historical trends. In other words, the increases are in line with rising costs of medical care overall and growing demand for services among Medicare beneficiaries.
The CMS also noted that without certain cost-saving measures (for example, reducing overuse of expensive wound-care treatments), the Part B premium could have been about $11 more per month. In a sense, these numbers reflect both medical cost inflation and efforts to control runaway spending.
What You Can Do About the Changes
Review your 2026 health and prescription needs. If you anticipate needing many doctor visits, durable medical equipment, medications, or hospital stays, higher deductibles and premiums mean higher out-of-pocket costs.
Explore supplemental coverage. If you have, or are considering, a Medigap plan, it may help cover deductibles and coinsurance that Original Medicare doesn’t cover, which may be especially valuable when premiums and deductibles increase.
If your income is on the high side, check the numbers. Because of IRMAA surcharges, some beneficiaries will pay significantly more than the standard premium. Consider calculating 2026 costs based on your modified adjusted gross income.
Budget carefully. These increases reinforce how important it is for retirees and older adults to plan for health care expenses in their budgets, especially in light of medical inflation and rising living costs.
Keep an eye on coverage options. For some, switching to a Medicare Advantage plan may make sense, but be sure to compare premiums, coverage, networks, and out-of-pocket limits carefully.
