Medicare Premiums Jump Nearly 10% for 2026
If you’re on Medicare—or approaching eligibility—brace yourself for a significant price hike in 2026. The Centers for Medicare & Medicaid Services (CMS) has officially announced that the
standard monthly premium for Medicare Part B will rise to $202.90, up from
$185.00 in 2025. That’s an increase of
$17.90, or just under 10%, marking one of the largest year-over-year jumps in recent memory.
This change affects millions of Americans who rely on Medicare for their health coverage, and it’s sparking concern among seniors, advocates, and financial planners alike.
Why Are Premiums Rising?
Every year, Medicare premiums and deductibles are recalculated based on projected healthcare costs, inflation, and legislative changes. For 2026, CMS cites higher overall healthcare spending and increased utilization of medical services as key drivers behind the premium hike.
Key changes for 2026 include:
-
Part B premium: $202.90/month (up from $185.00 in 2025)
-
Part B deductible: $283/year (up from
$257 in 2025)
-
Part D drug cap: Out-of-pocket costs for prescription drugs under Part D will be capped at
$2,100, offering some relief for those with high medication expenses.
Income-Based Premiums: What High Earners Will Pay
Medicare premiums aren’t one-size-fits-all. If your income exceeds certain thresholds, you’ll pay more. For example:
- Individuals earning
over $109,000 (or couples over
$218,000) will see their monthly premiums climb even higher, with some paying up to
$567.50 per month depending on income brackets.
Here’s a quick look at the 2026 Part B premium tiers:
| Income (Individual) | Income (Couple) | Monthly Premium |
|---------------------|-----------------|-----------------|
| ≤
$109,000 | ≤
$218,000 |
$202.90 |
|
$109,001–
$137,000 |
$218,001–
$274,000|
$284.10 |
|
$137,001–
$171,000 |
$274,001–
$342,000|
$405.80 |
|
$171,001–
$205,000 |
$342,001–
$410,000|
$527.50 |
|
$205,001–
$500,000 |
$410,001–
$750,000|
$567.50 |
What’s New for Medicare Benefits in 2026?
It’s not all bad news. Alongside premium increases, Medicare is rolling out new benefits:
-
Prescription Drug Cap: Out-of-pocket costs for Part D drugs will be capped at $2,100, a major win for those with expensive medications.
-
Advanced Primary Care Management: Expanded coverage for primary care services.
-
Preventive Screenings: Colorectal cancer screenings will be covered, reflecting Medicare’s push for more preventive care.
Expert Commentary: How Should Seniors Prepare?
Financial planners recommend reviewing your budget and exploring supplemental insurance options. “This premium increase could squeeze fixed incomes, so it’s crucial to plan ahead,” says Medicare expert Lee Fifield. Seniors should also check if they qualify for programs that help cover premiums and out-of-pocket costs.
Actionable Takeaways
-
Review your income: Higher earners should anticipate larger premium bills.
-
Check your Part D coverage: The new drug cap could save you thousands if you have high medication costs.
-
Explore assistance programs: If you’re struggling to afford premiums, look into Medicare Savings Programs or Extra Help.
What’s Next?
With healthcare costs continuing to rise, experts warn that future premium increases may be inevitable. Policymakers are watching closely, and advocacy groups are pushing for reforms to keep Medicare affordable for all.
Sources
1. 2026 Medicare Parts A & B Premiums and Deductibles
2. Taking an AAPC Exam in 2024? A Change Is Coming
3. How are Medicare costs and benefits changing for 2026?
4. Google
5. [PDF] Medicare and You Handbook 2026
6. Medicare Part B Premiums and Deductibles Will Increase in 2026
