Medicare premiums and deductibles increased in 2026 from 2025 levels, with Part B premiums rising by about 9.7%. To get the most from your plan, it’s important to understand your premiums, deductibles and out-of-pocket costs, which will vary depending on your plan and income.
You could also owe a monthly surcharge on Medicare Part B and Part D premiums based on an income-related monthly adjustment amount (IRMAA).
Medicare open enrollment runs from October 15 to December 7 annually. During this period, you can switch from original Medicare to a Medicare Advantage plan, or vice versa. You can also choose a new Advantage plan or Medicare Part D prescription drug coverage.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
CLICK FOR FREE ISSUE
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
(Image credit: Getty Images)
Medicare Part A deductible
The Part A deductible for hospital admissions increases to $1,736 in 2026. That’s an increase of $60, up from $1,676 in 2025. The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.
There’s no limit to the number of benefit periods you can have in a year. This means you may pay the deductible more than once in a year.
For patients hospitalized for more than 60 days, the coinsurance amount in 2026 is $434 per day (up $15 from $419 in 2025) for the 61st through the 90th day of hospitalization. The coinsurance payment rises to $868 a day, up $30 from $838 in 2025, starting on the 91st day of hospitalization. For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period is $217.00, up $7.50 from $209.50 in 2025.
Reminder: Part A does not cover long-term care. It also does not cover most non-medical personal expenses, such as custodial care that helps with daily activities, such as eating and bathing.
(Image credit: Getty Images)
Medicare Part B monthly premium
In 2026, the standard monthly premium is $202.90, up $17.90 from $185 in 2025. That is an increase of almost 10%. The annual deductible for all Medicare Part B beneficiaries is $283 in 2026, $26 more than the 2025 deductible of $257.
Part B covers doctor visits, outpatient services, home health care, durable medical equipment and many preventive services. You usually pay 20% of the Medicare-approved amount for Part B-covered services after you meet your deductible. This amount is called your coinsurance.
High earners will pay more. The income-related monthly adjustment amount (IRMAA) is a surcharge for people with income above a certain amount that must be paid in addition to their Medicare Part B and Part D premiums. The IRMAA is calculated every year. That means if your income is higher or lower year after year, your IRMAA status can change. If the SSA determines you must pay an IRMAA, you’ll receive a notice with the new premium amount and the reason for the determination.
This surcharge shifts costs back to the beneficiary. So, if you are a higher-income beneficiary, you will pay a larger percentage of the total cost of Part B based on income reported on your annual tax return. You’ll pay monthly Part B premiums equal to 35%, 50%, 65%, 80%, or 85% of the total cost, depending on your income and subsequent surcharge amount.
In 2026, if your 2024 AGI is above $109,000 if you are single or $218,000 if you’re married and file jointly, you’ll pay an extra amount in addition to your plan premium. That surcharge ranges from $81.10 to $486.50.
(Image credit: Getty Images)
Medicare Part D prescription drug plan
The average premium for a Part D standalone plan, which covers drug costs, is expected to be $34.50 in 2026, down $3.81 from $38.31 in 2025. If you have a Medicare Advantage plan that charges a Part D total premium, that cost is projected to decrease to $11.50 in 2026 from $13.32 in 2025, down $1.82.
The maximum Part D deductible is set at $615 for 2026, an increase of $25 from the 2025 deductible of $590. The cap on Part D out-of-pocket costs is $2,100, up $100 from 2025.
The cap on out-of-pocket expenses applies only to medications covered by your Part D plan and does not apply to spending on Medicare Part B drugs. Part B drugs are usually vaccinations or injections that a doctor administers, and some outpatient prescription drugs. However, some vaccines are covered at no cost, including flu shots and COVID boosters. The list of free vaccinations is updated annually.
Optional payment plan. Part D enrollees can spread out their out-of-pocket costs over the year rather than face high out-of-pocket costs in any given month. To do this, you would pay a capped monthly installment over the course of the calendar year instead of all at once at the pharmacy. Here’s how that would work.
If you opt into the Medicare Prescription Payment Plan through your Part D sponsor, you won’t be charged at the pharmacy; your plan is automatically notified. Instead, your plan will send you a monthly bill showing the amount owed for your prescriptions and payment instructions. Your regular monthly plan premium (if applicable) will be billed separately. You can directly opt in to the Medicare Prescription Payment Plan through your Part D plan sponsor.
IRMAA. A surcharge for high earners also applies to your Medicare Part D drug coverage. In 2026, if your 2024 AGI is above $109,000 if you are single or $218,000 if you’re married and file jointly, you’ll pay an extra amount in addition to your plan premium. That surcharge ranges from $14.50 to $91.00. You’ll be liable for this surcharge if your Medicare Advantage Plan includes Part D drug coverage
Tip: Medicare recommends beneficiaries consider getting a drug plan even if you don’t take many drugs now or your current out-of-pocket drug costs are low. If you enroll in a plan with a low monthly premium, you can avoid the late enrollment penalty. Since all plans must cover a wide range of drugs that people with Medicare take, it will come in handy if your needs change.
(Image credit: Getty Images)
Medigap
Medicare doesn’t cover everything; there is a coverage gap often called the “doughnut hole.” Part B pays for 80% of doctors’ visits and other outpatient services. In addition, Medicare doesn’t cover supplemental services such as dental care, eye appointments, or hearing aids. You have two options for handling your uncovered expenses. You can purchase Medigap insurance to complement your original Medicare insurance or enroll in a Medicare Advantage plan.
Private insurers offer Medicare supplemental insurance or Medigap policies that cover deductibles and copayments. These policies are categorized by letters A through N. All plans offer the same basic benefits, no matter where you live or which insurance company you buy the policy from. Every policy that goes by the same letter must offer the same basic benefits; usually, the only difference is the cost.
Due to the phasing out of the popular Medigap Plan F, Plan G is now the plan of choice for many. The glaring difference between F and G is that Plan G does not cover the Part B deductible. Plan G also covers “excess charges” that doctors who don’t accept the Medicare-approved amount as full payment can charge you, up to 15% above the Medicare-approved amount for services and procedures. Anyone enrolled in Medicare before 2020 can still enroll in plans F and C.
If you choose a high-deductible F or G plan, you can expect to pay a deductible of $2,950 before your policy pays anything, including coinsurance, copayments, and deductibles. This is an increase of $80 over the 2025 deductible of $2,870.
Medicare Supplement Plan K and Plan L are cheaper than other Medigap policies and have an out-of-pocket limit. These two plans have lower monthly premiums since you’ll also share the coinsurance costs for your Plan K (50%) and Plan L (25%) up to your annual maximum limit.
Read What’s the Best Medigap Plan? to find out more about the 10 different Medigap plans you can choose from.
(Image credit: Getty Images)
Medicare Advantage plans
A Medicare Advantage plan is an alternative to original Medicare, making Medigap coverage unnecessary. Medicare Advantage Plans are sometimes called “Part C” or “MA Plans.” If you join a Medicare Advantage Plan, you’ll still have Medicare, but you’ll get your Part A and Part B coverage from your Medicare Advantage Plan. You are prohibited from buying a Medigap plan while enrolled in an MA plan.
These plans provide medical and prescription drug coverage through private insurance companies. Depending on the plan you choose, the monthly premium, in addition to the Medicare Part B, will vary. The average monthly premium will decrease to $14.00 in 2026, down $2.40 from $16.40 in 2025.
Advantage policies charge lower premiums than Medigap plans but may have higher deductibles and copayments, and your choice of providers may be more limited than with original Medicare. Some enrollees may need to find new coverage, as some major insurers have reduced the number of plans they are offering in 2026. Check your Annual Notice of Change to see if the plan reductions impact you.
Unlike original Medicare, Medicare Advantage plans have a maximum out-of-pocket limit. In 2026, your maximum expenses are $9,250 for in-network services and $13,900 for out-of-network services. This is a decrease from $9,350 and $14,000, respectively, in 2025. However, plans may set lower limits that apply only to Parts A and B and do not include Part D costs.
