Changes Coming to Medicare in 2026

As we approach 2026, Medicare beneficiaries should prepare for several important changes that will affect their healthcare costs and Social Security benefits. Here's what you need to know to plan your budget for the coming year.

Medicare Part B Premium Increase

The most significant change for most beneficiaries will be the increase in the Medicare Part B monthly premium. In 2026, the standard premium is expected to rise from $185 to $206 per month—an increase of $21. This premium covers doctor visits, outpatient care, and other medical services.

This increase will be automatically deducted from Social Security checks for most beneficiaries, which means the impact will be felt directly in monthly income.

Rising Deductibles

Along with premium increases, beneficiaries will also see higher deductibles:

Part B Deductible: The annual deductible will increase from $257 to $288—a $31 increase. This is the amount you'll need to pay out-of-pocket before Medicare begins covering Part B services each year.

Part A Deductible: The Part A deductible (for hospital stays) will also rise in 2026. However, there's good news here: most people with Medigap supplemental insurance or Medicare Advantage plans will have this increase covered by their existing coverage, minimizing the direct financial impact.

Social Security Cost of Living Adjustment

To help offset rising costs, Social Security recipients will receive a 2.9% cost of living adjustment (COLA) in 2026. While this increase is designed to help beneficiaries keep pace with inflation, it's important to understand how it interacts with Medicare premium changes.

Real-World Impact: What This Means for Your Budget

Let's look at a practical example. Consider a single retiree currently receiving $1,500 per month in Social Security benefits:

Current monthly income (2025): $1,500

Minus current Part B premium: -$185

Net monthly income: $1,315

2026 monthly income with COLA: $1,543.50 (2.9% increase)

Minus new Part B premium: -$206

Net monthly income: $1,337.50

Bottom line: This retiree will see a net increase of $22.50 per month in their Social Security check after accounting for both the COLA increase and the higher Medicare premium.

Planning Ahead

While the 2.9% COLA increase will provide some relief, it's clear that most of the benefit will be absorbed by rising Medicare costs. Beneficiaries should:

• Review their current Medicare coverage to ensure it still meets their needs

• Consider whether a Medigap or Medicare Advantage plan might provide better value

• Budget for the increased Part B deductible when planning for healthcare expenses

• Explore available assistance programs if these increases create financial hardship

Understanding these changes now will help you make informed decisions about your healthcare coverage and budget for the year ahead. If you have questions about how these changes affect your specific situation, consider speaking with a Medicare counselor or financial advisor.

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