Medicare Premiums to Rise 11.6% in 2026, Projected to Reach $206.50 per Month.

Medicare premiums are expected to rise in 2026, with Part B premiums projected to increase by 11.6% to $206.50, the largest increase since 2022. The base premium for Medicare Part D is projected to be $38.99, but actual premiums vary according to the plan enrolled in. The Part B increase is expected to consume almost 40% of the monthly Social Security increase.

Medicare beneficiaries are bracing for a significant increase in healthcare costs as we approach 2026. According to recent projections, Medicare Part B premiums are expected to rise by 11.6% to $206.50 per month, marking the largest increase since 2022 [1]. This substantial hike will impact fixed-income seniors and retirees, who rely heavily on Medicare for their healthcare needs.

The projected increase in Medicare Part B premiums is not the only change beneficiaries should be aware of. The Part B annual deductible is also expected to rise modestly, though final figures are yet to be confirmed. Additionally, high-income beneficiaries will face steeper IRMAA (Income-Related Monthly Adjustment Amounts) surcharges. Part B IRMAA brackets are estimated to rise by an average of 1.04%, and Part D IRMAA surcharges could jump over 6% in 2026 [1].

Several factors are contributing to the higher costs, including growth in healthcare utilization, medical inflation, inflation adjustments to Social Security and Medicare income thresholds, and projected federal spending increases on Medicare programs [1].

The Social Security Administration (SSA) automatically deducts the Part B premium cost from the Social Security benefits of most Medicare recipients. The projected Part B increase is expected to consume almost 40% of the monthly Social Security increase, which is projected to rise between 2.6% and 2.7% in 2026 [2].

Medicare open enrollment runs from October 15 to December 7 annually, providing beneficiaries with an opportunity to switch from Original Medicare to a Medicare Advantage plan or vice versa. Medicare Advantage plans, also known as Part C, offer private insurance alternatives to Original Medicare and can help protect against rising costs by providing lower out-of-pocket expenses for hospital stays and medical services, built-in prescription drug coverage (Part D), and extra benefits like dental, vision, hearing, fitness programs, and transportation [1].

Understanding the projected premiums and deductibles is crucial for beneficiaries to make informed decisions about their healthcare coverage. It is recommended to review your coverage annually to avoid being caught off guard by escalating expenses. For the most accurate and up-to-date information, beneficiaries should check the Centers for Medicare & Medicaid Services (CMS) website and consult with a knowledgeable health insurance advisor.

References:
[1] https://www.stellarhealthbenefits.com/blog/medicare/medicare-2026-premium-increase
[2] https://www.kiplinger.com/retirement/medicare/plan-for-higher-health-care-costs-in-2026-projected-medicare-part-b-and-part-d-premiums