It is expected that by next year, 2026, Medicare costs will increase significantly, so it is important to stay informed to avoid unwanted surprises. Although this increase will affect all parts of the program, Part B will experience the biggest rise. Part A, which covers hospitalizations, will see an increase of $60 compared to 2025. The first 60 days of hospitalization would be covered, but between days 61 and 90, the daily rate would be $434, and from day 91 onward, $868. As for Part B, it will experience a 10% monthly increase, the deductible will be $283, and people with higher incomes will pay an additional surcharge through IRMAA.
An independent drug plan, that is, Part D, will decrease to $34.50. The maximum deductible will increase by $25 and the annual out-of-pocket limit will rise to $2,100. All drugs administered by a physician, under Part B, will not be included in this cap, unlike vaccines, such as the flu and COVID boosters. Medigap remains the chosen option to cover what Medicare does not. Only those who enrolled in Medicare before 2020 can purchase Plans F and C, which have been eliminated for new enrollees. Medicare Advantage, Part C, will have a monthly premium of $14 and will include coverage for Parts A and B.
Changes in Medicare 2026
Despite the pressure exerted by the Democrats during the federal government shutdown, Medicare costs will increase heading into 2026. Although all parties will be affected, without exception, it will be Part B that experiences the greatest rise. It is important to know the new amounts and coverages offered by each plan to avoid surprises with medical bills next year.
Part A
The deductible will increase by $60 compared to the previous year, totaling $1,736. This amount covers hospitalizations for up to 60 days, with no limit on the number of periods that may occur in a year. If the stay exceeds 60 days, the daily rate will be $434 per day from days 61 to 90, and $868 per day from day 91 onward. If hospitalization occurs in specialized nursing facilities, the daily cost from day 21 to day 100 will be $217 ($7.50 more than in 2025).
Part B
The monthly premium will experience a 10% increase, reaching $202.80. On the other hand, the deductible will also go from $257 to $283. Once that amount has been reached for doctor visits, medical equipment, and outpatient care, covered services will continue to have a 20% coinsurance. Meanwhile, those with higher incomes will have to pay an additional surcharge through IRMAA, receiving a notification with their updated amount and the reason for that adjustment.
Part D
The average cost of a standalone prescription drug plan (Part D) will drop to $34.50 in 2026. Those who choose a Medicare Advantage plan with drug coverage included will pay an average premium of $11.50. The deductible will increase by $25, reaching $615, and the annual out-of-pocket limit will rise to $2,100 (applicable only to Part D drugs). All drugs administered by a physician under Part B will not be included, except for vaccines, such as the flu or COVID boosters. IRMAA also applies to Part D: the surcharges for 2026 will range from $14.50 to $91 per month for those above the mentioned income thresholds.
Medigap
It is the chosen option to cover copayments and deductibles that Medicare does not cover. Only those who enrolled before 2020 can purchase Plans F and C, which have been eliminated for new members. The deductible for high-deductible Plans F and G will increase to $2,950.
Medicare Advantage, Part C
They will have a monthly premium of $14, including coverage for Parts A and B, and in most cases, prescription drugs. Unlike original Medicare, this plan does have maximum out-of-pocket limits: $9,250 for in-network services and $13,900 for out-of-network services.