Every year, Medicare beneficiaries experience cost fluctuations, but the changes for 2026 are especially noteworthy. From rising premiums to increased out-of-pocket costs for hospital stays and prescription drugs, these adjustments reflect the broader trend of healthcare inflation.
Rising Premiums and Deductibles: Increased Costs for Part B and Part A
Medicare’s Part B premium, which covers outpatient services like doctor visits and certain medical supplies, will see a significant increase in 2026. According to the Centers for Medicare & Medicaid Services (CMS), the standard monthly premium for Part B will rise to $202.90, up from $185 in 2025. This $17.90 increase comes at a time when Social Security recipients will also see a 2.8% cost-of-living adjustment (COLA), which may help offset some of the premium increases. However, the increase in premiums could still leave many retirees with less disposable income than they expected.
In addition to the premium hike, the Part B deductible will rise by $26, reaching $283 in 2026. This is the amount Medicare recipients must pay out of pocket before their insurance starts covering outpatient services. For those who require frequent outpatient care, this increase can add up over the course of the year, straining household budgets. Higher-income individuals may face even higher premiums due to the Income-Related Monthly Adjustment Amounts (IRMAA), further exacerbating the financial burden.
Medicare’s Part A coverage, which helps pay for hospital stays, will also become more expensive. The hospital deductible for Part A will increase to $1,736 in 2026, up from $1,676 in 2025. This deductible applies each time an individual is admitted to the hospital, meaning that frequent hospital visits could quickly lead to significant out-of-pocket expenses.
Medicare Advantage and Prescription Drug Coverage
Along with the increases in Part A and Part B, beneficiaries with Medicare Advantage plans and Part D prescription drug coverage will also experience cost changes in 2026. One notable shift is the decrease in the out-of-pocket limit for Medicare Advantage plans, which will drop by $100, from $9,350 to $9,250. This reduction in out-of-pocket costs for in-network services could provide some relief for beneficiaries who have higher medical expenses.
However, for those enrolled in Medicare Part D, the annual deductible will rise to $615 in 2026, an increase of $25 compared to 2025. This means that beneficiaries with Part D coverage will pay more before their prescription drug benefits take effect. The out-of-pocket limit for prescription drugs will also increase to $2,100 in 2026, a change that could result in higher costs for those with significant medication needs. While some plans may have a lower deductible or none at all, these increases set the maximum amounts that any plan can charge.
For those using insulin, the $35 monthly cap introduced in 2023 will continue to apply in 2026. Medicare will continue to cover insulin at this capped rate, helping to make diabetes management more affordable for enrollees. Additionally, Medicare will continue to cover GLP-1 weight loss medications like Ozempic, which have been part of ongoing discussions around prescription drug costs. These medications, which are used to treat both obesity and diabetes, will be covered under Medicare with a $50 monthly copay starting in 2026.
