2026 Medicare Costs

The Medicare landscape is continually evolving. and 2026 brings a mix of cost adjustments. Here are the key Medicare updates you should know for 2026.

Original Medicare Parts A & B: Cost Increases

For 2026, beneficiaries will see increases in premiums and deductibles for both Medicare Part A (hospital insurance) and Part B (outpatient services).

Part B Premiums and Deductibles

The standard monthly premium for Medicare Part B enrollees is set at $202.90 in 2026, (up from $185 in 2025). The annual deductible for Part B beneficiaries will be $283 in 2026 (up from $257 in 2025).
High-income beneficiaries will also see slight changes to their Income-Related Monthly Adjustment Amount (IRMAA) surcharges, which apply to individuals with incomes over $109,000 and joint filers with incomes over $218,000.

Part A Premiums and Deductibles

Most people do not pay a premium for Part A. However, those who must buy Part A will see increases: the premium will be $311 per month for those with 30-39 quarters of work history, and $565 per month for those with fewer than 30 quarters.
The Part A inpatient hospital deductible per benefit period is also increasing to $1,736.

Coinsurance:
(Days 1-60): $0 per day of each benefit period,
(Days 61-90): $434 per day of each benefit period.
(Each day after day 90): $868 per day of each benefit period.

Medicare Part D: Prescription Drug Changes

The Inflation Reduction Act continues to reshape prescription drug coverage in 2026, bringing key relief measures and cost caps.

• Annual Out-of-Pocket Cap: The most significant change is the implementation of a firm annual cap on out-of-pocket prescription drug costs. In 2026, your costs for covered Part D drugs will be capped at $2,1000, up slightly from $2,000 in 2025. Once this limit is reached, you pay nothing for covered Part D drugs for the remainder of the year.
• Drug Price Negotiations: The first wave of Medicare-negotiated drug prices takes effect in 2026. Negotiated prices for 10 high-cost medications used to treat conditions like diabetes and heart disease will be available to beneficiaries, potentially leading to substantial savings on drugs such as Eliquis, Januvia, and Jardiance.
• Insulin and Vaccines: The $35 monthly cap on out-of-pocket costs for covered insulin products remains in effect. Additionally, all recommended adult vaccines covered by Part D, such as shingles and pneumonia shots, will be covered at no cost.
• Maximum Deductible: The maximum allowable Part D deductible rises to $615.

Medicare Advantage (Part C): Evolving Options

The Medicare Advantage (MA) landscape is shifting, with a few major insurers trimming some plan offerings or exiting certain markets.

• Plan Availability Changes: Be sure to review your Annual Notice of Change (ANOC) carefully. Your current plan may no longer be available in 2026, or its benefits, copays, and provider networks may change.
• Decreased Out-of-Pocket Limit: In a positive move, the maximum out-of-pocket (MOOP) limit for in-network services under MA plans will slightly decrease to $9,250 in 2026, down from $9,350 in 2025. Many plans may set their limits even lower.
• Enhanced Supplemental Benefits: MA plans are expected to continue offering a range of supplemental benefits such as dental, vision, and hearing coverage, along with new wellness programs and support for managing chronic conditions.

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