Medicare has confirmed substantial increases in costs across all its programs for 2026, impacting millions of seniors in the United States. The adjustments include rising premiums, deductibles, and income-related monthly adjustment amounts (IRMAA), with Part B experiencing the largest hike.
Details of the Increases
Starting in 2026, the deductible for Medicare Part A will rise by $60, bringing the total to $1,736. This amount covers hospital stays for up to 60 days without limits on the number of periods in a year. Should hospitalization extend beyond 60 days, beneficiaries will incur a daily charge of $434 from days 61 to 90, and $868 from day 91 onward. Additionally, for care in skilled nursing facilities, the daily cost will increase to $217 from day 21 to day 100, reflecting a $7.50 rise compared to 2025.
In terms of Part B, the monthly premium will see a significant increase of 10%, reaching $202.80. The deductible will also rise from $257 to $283. Once the deductible is met, beneficiaries will continue to pay a 20% coinsurance for covered services. Higher-income individuals will be subject to additional IRMAA surcharges, which will be communicated to them with explanations for the adjustments.
Changes to Prescription Drug Plans
For those enrolled in Part D, the average cost of a standalone prescription drug plan will decrease to $34.50 in 2026. However, the deductible for these plans will increase by $25, reaching $615. The annual out-of-pocket limit will also rise to $2,100, applicable only to Part D medications. Notably, drugs administered by a physician under Part B, except for vaccines like flu and COVID boosters, will not count toward this out-of-pocket cap.
Individuals choosing a Medicare Advantage plan, which includes coverage for both Parts A and B, will see an average monthly premium of $14. Unlike original Medicare, these plans will feature maximum out-of-pocket limits, set at $9,250 for in-network services and $13,900 for out-of-network care.
Medigap policies remain a popular choice for covering copayments and deductibles that Medicare does not cover. However, only those who enrolled before 2020 can purchase Plans F and C, which have since been eliminated for new enrollees. The deductible for high-deductible Plans F and G will increase to $2,950.
The upcoming changes to Medicare costs are significant, and it is crucial for seniors to stay informed about the new rates and coverage options to avoid unexpected medical expenses in the coming year. As the details unfold, beneficiaries are encouraged to review their options carefully and consider seeking advice on how best to manage these increased costs.
