BREAKING: All 2026 Medicare Increases CONFIRMED – Full Cost Breakdown
As someone who has been helping retirees navigate Medicare for more than 30 years, I can tell you2026 is shaping up to be one of the biggest cost-jump years we’ve seen in a long time. CMS has now confirmed the major premium and deductible increases across Medicare Part A, Part B, Part D, drug costs, IRMAA, and Medigap expenses. These changes will affect every retiree, whether you’re on Original Medicare with a supplement or on a Medicare Advantage plan. Here is the full breakdown of what you need to know so you can prepare your budget before these new prices hit.
2026 Medicare Part B Premium Increase
Medicare Part B has its largest increase in years. The 2026 standard premium is confirmed at $206.50 per month, up from $185 in 2025. That’s over a 10% jump. If you’re a higher-income earner, the IRMAA brackets will push your premiums much higher than this baseline. The Part B deductible is also rising again, moving from $257 in 2025 to $272 in 2026. This deductible must be paid once per year before Medicare begins covering outpatient services.
2026 Medicare Part A Deductible and Hospital Costs
The Part A hospital deductible is increasing from $1,632 to $1,704 per benefit period. Remember, this is not an annual deductible you can be charged this multiple times a year depending on hospital admissions. Coinsurance for longer hospital stays is also increasing. Skilled nursing facility costs rise as well, with the daily coinsurance increasing for days 21–100 of care.
2026 Medicare Part D Prescription Drug Changes
Drug costs are undergoing some of the biggest structural changes in decades. The Part D deductible in 2026 is confirmed at $645, continuing the trend of large increases each year. Generic drugs in tiers 1 and 2 may still bypass the deductible, but brand and specialty drugs will require you to pay the full deductible before coverage begins. The catastrophic cap also increases slightly from $2,000 in 2025 to $2,100 in 2026, meaning no enrollee will pay more than this amount out-of-pocket for covered medications in a calendar year. Plan premiums are expected to rise significantly, with increases ranging from $15 to $50 per month depending on the plan.
2026 IRMAA Increases for Higher-Income Retirees
IRMAA surcharges tied to your 2024 tax return will increase Part B and Part D premiums for higher-income earners. Although CMS has not released the official bracket adjustments, they have confirmed bracket increases across the board. If your income exceeds $103,000 (single) or $206,000 (married), you will be placed into an IRMAA tier in 2026. These increases will push some retirees into monthly Medicare premiums of $500 to $700+ per person.
Medigap Premium Increases in 2026
Supplemental (Medigap) plans are also experiencing significant price increases. We’re already seeing 2026 preview rates showing 20–40% premium increases in several states. Plan G and Plan N remain the most popular options, but both are expected to rise sharply due to inflation, utilization, and rising Medicare reimbursements. Plan G will continue to cover all gaps except the Part B deductible. Plan N will remain a lower-premium option, but it includes $20–$50 copays and potential excess charges depending on your state.
Medicare Advantage Cost Changes
Even though many Advantage plans advertise “$0 premium,” you will still feel the effect of 2026 cost increases. Out-of-pocket maximums are increasing across many plans, rising into the $5,500–$8,000 range. Hospital copays, specialist copays, and drug tiers are also being adjusted upward. Many popular plans are reducing dental, vision, and OTC benefits to compensate for rising medical costs.
Why All These Increases Are Happening
CMS attributes these 2026 hikes to hospital inflation, higher drug utilization, physician reimbursement shifts, and the continued rollout of the Inflation Reduction Act. Private insurers are raising premiums because they are absorbing new compliance costs and drug liabilities. These increases affect every part of Medicare no enrollee is untouched by the 2026 changes.
How to Prepare for 2026 Costs
My advice is to review your plan early this fall and compare all of your expected 2026 costs—not just your premiums. Consider drug changes, deductible differences, network changes, and your max out-of-pocket exposure. If you have a supplemental plan, shop your Plan G or N premiums to avoid the highest increases. If you are on Medicare Advantage, the Annual Notice of Change letter arriving in October will be more important than ever.
