Medicare Costs for 2026 – What Beneficiaries Need to Know
Each year, Medicare updates the premiums, deductibles, and coinsurance amounts for Parts A and B. These changes can have a significant effect on your budget; especially if you are living on a fixed income. Below we go over the projected Medicare costs for 2026. We have included a brief look at Part D and the high-deductible Medigap option.
Medicare Part A Costs for 2026
Medicare Part A covers inpatient hospital care, skilled nursing facility care, hospice, and some home health services. Most people do not pay a Part A premium, but you are still responsible for deductibles and coinsurance amounts.
- Part A deductible (per benefit period): Projected to rise from $1,676 in 2025 to about $1,716 in 2026.
- Hospital coinsurance (days 61–90): Expected to increase from $419/day to around $429/day.
- Lifetime reserve days (beyond day 90): Rising from $838/day to about $858/day.
- Skilled Nursing Facility coinsurance (days 21–100): Expected to increase to about $214.50/day.
Since the Part A deductible applies per benefit period, you could pay it more than once in a year if you have multiple hospital stays separated by 60+ days.
Medicare Part B Costs for 2026
Part B covers outpatient services, doctor visits, preventive care, and durable medical equipment.
- Standard Part B premium: Expected to increase from $185/month in 2025 to around $206.50/month in 2026.
- Part B annual deductible: Projected to rise from $257 to about $288 in 2026.
After you meet your Part B deductible, Medicare generally covers 80% of approved charges, leaving you responsible for the remaining 20% unless you have supplemental coverage.
Part D Prescription Drug Costs (Quick Note)
Even though Part D is separate from Parts A & B, it’s worth noting that the maximum Part D deductible is expected to increase from $590 in 2025 to $615 in 2026. There will also be a new out-of-pocket cap of $2,100 for covered drugs (it was $2,00 in 2025), which helps those with high prescription costs.
High-Deductible Medigap (HDG) Plans – A Quick Overview
For those who purchase a high-deductible Medigap plan (Plan G or F), the annual deductible must be met before the plan starts paying for costs that Original Medicare doesn’t cover.
- The 2025 high-deductible amount is $2,870.
- The 2026 amount has not yet been finalized but is expected to rise slightly in line with medical inflation.
These plans often have lower monthly premiums, making them attractive for healthier beneficiaries who expect lower healthcare usage, but you’ll need to budget for that large deductible in case of an unexpected illness or hospitalization.
Watch a YouTube video on High Deductible G Plans
Why This Matters
The projected increases in Part B premiums and deductibles could take a big bite out of Social Security cost-of-living adjustments. Planning ahead helps you avoid surprises.
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Here’s what clients should do:
- Budget for higher premiums and deductibles.
- Review supplemental coverage to ensure it still meets your needs and budget.
- Compare Part D plans during the Annual Enrollment Period (AEP) to find one that best covers medications at the lowest cost.
- Stay informed—CMS will finalize these numbers in Fall 2025, so check back for updates.