Medicare costs surge for older adults in 2026
Older adults will face a significant increase in their healthcare costs next year.
The Centers for Medicare & Medicaid Services (CMS) released the 2026 cost-sharing amounts on Nov. 14, showing that increases will affect both Part A (Hospital) and Part B (Medical) coverage, with the standard Part B premium rising by nearly 10%.
The surge in costs is mainly due to projected growth in overall healthcare spending, medical inflation and increased utilization of outpatient services, CMS said in a statement.
The most impactful change for the majority of beneficiaries is the cost of Medicare Part B, which covers doctor visits, outpatient services and certain medical equipment.
The standard month Part B premium will be $202.90 in 2026, an increase of $17.90 from the current $185.
The annual Part B deductible for all beneficiaries will climb to $283 in 2026, an increase of $26 from $257 in 2025. This nearly 10% hike is one of the largest single-year dollar increases in the program's history, according to CNN .
For many retirees, this $17.90 monthly premium increase will immediately consume a substantial portion of their Social Security Cost-Of-Living Adjustment (COLA) for 2026, the media outlet reported.
CMS noted that the Part B premium increase would have been about $11 higher if the Trump administration had not taken action to reduce spending on certain high-cost items, such as skin substitutes.
Even for the 99% of beneficiaries who received Part A (Hospital) coverage premium-free, the out-of-pocket costs for inpatient stays are rising:
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Inpatient hospital deductible (first 60 days) increasing from $1,676 to $1,736 in 2026. A $60 increase
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Daily hospital coinsurance (days 61-90) increases from $419 to $434. A $15 increase
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Daily hospital coinsurance for lifetime reserve days is increasing from $838 to $868. A $30 increase
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Skilled nursing facility daily coinsurance (days 21-100) increasing from $209.50 to $217. A $7.50 increase.
For the estimated 1% of beneficiaries who must pay a Part A premium due to insufficient work history, the full premium will rise by $47 to $565 a month in 2026.
Approximately 8% of Medicare beneficiaries with higher incomes will pay Income-Related Monthly Adjustment Amounts (IRMAA) for Part B and Part D coverage, CMS said.
The total monthly Part B premium for the highest income bracket (individual filers with modified adjusted gross income of $500,000 or more) will be $689.90 in 2026.
The maximum Part D income-related month adjustment amount will be $91 for the same highest income bracket.
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