Medicare Part B costs are set to rise significantly in 2026, marking one of the largest annual jumps in recent years. The increase will affect millions of seniors nationwide, impacting their budgets and influencing healthcare decision-making during the annual open enrollment period.
2026 Premium Increases
The standard monthly premium for Medicare Part B is projected to reach $206.50 in 2026, up from $185 in 2025. This $21.50 (about 11.6%) increase represents the biggest dollar jump since 2022 and is driven by rising demand for outpatient care, higher prescription drug prices, and general medical inflation. Part B covers physician visits, outpatient care, preventive services, and durable medical equipment.
Annual Deductible and Cost-Sharing
The annual deductible for Medicare Part B is expected to rise from $257 in 2025 to $288 in 2026, a $31 (12%) increase. Beneficiaries must pay this deductible before Medicare begins covering outpatient medical expenses. After meeting the deductible, enrollees typically pay 20% of Medicare-approved amounts for most services.
Impact on Social Security Checks
Most Medicare Part B enrollees have their premiums deducted directly from their Social Security payments. The Social Security cost-of-living adjustment (COLA) for 2026 is 2.8%, averaging $54 more per month for retirees. However, the premium increase will consume nearly 40% of this adjustment for most seniors, underscoring the financial pressure caused by healthcare expenses. For low-income beneficiaries, the “hold harmless” provision ensures that net Social Security payments do not decrease due to rising premiums.
Higher Costs for High-Income Seniors
The Income-Related Monthly Adjustment Amount (IRMAA) surcharges for higher-income beneficiaries will also climb in 2026. Depending on income, these surcharges can add $83 to almost $496 a month on top of the standard Part B premium. These surcharges are recalculated yearly and apply to both Part B and Part D coverage.
Preparing for Change
Seniors are encouraged to review their Medicare coverage during open enrollment (Oct. 15 – Dec. 7, 2025) to check for savings and ensure their plans match their healthcare needs. Adjusting income, switching to different Medicare Advantage or Medigap plans, or enrolling in prescription drug payment plans may help offset rising costs.
Medicare’s growing expenses highlight the financial challenges facing seniors, especially those on fixed incomes, and emphasize the importance of strategic planning during the annual enrollment period.