If you’re on Medicare, you might want to prepare your budget now—because 2026 is shaping up to be a pricier year for your healthcare coverage. Premiums and deductibles are on the rise, but there are steps you can take to soften the impact. Let’s go over what’s changing and how you can plan ahead.
Key Changes Coming in 2026
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Part B Premiums
The standard monthly Part B premium is expected to jump to $206.50, which is about an 11.6% increase from 2025. That’s one of the largest year-over-year hikes in recent memory. -
Part B Deductible
Your annual deductible is projected to climb from $257 to $288—a nearly 12% bump. -
Part D Prescription Coverage
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The average monthly premium is estimated to rise to around $38.99.
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The deductible will likely increase from $590 to $615.
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The catastrophic coverage threshold—the point at which you pay little or nothing for covered drugs—is set to rise to $2,100.
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Higher-Income Surcharges (IRMAA)
Beneficiaries with higher incomes can expect an additional $8.60 to $51.70 per month, depending on income level.
Why the Increase?
Several factors are behind these jumps:
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Rising healthcare costs, especially for outpatient care and prescription drugs
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A growing Medicare population that’s using more services
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Revenue from Medicare taxes not keeping pace with program expenses
How to Prepare and Save
1. Compare Your Options During Open Enrollment
Between October 15 and December 7, take time to compare Medicare Advantage, Medigap, and stand-alone Part D plans. Switching could lower your premiums or give you better coverage for the money.
2. Manage Your Taxable Income
If you’re close to an IRMAA threshold, consider strategies like Roth IRA conversions, spreading out capital gains, or making qualified charitable distributions to keep your income below the surcharge limits.
3. Look Into Financial Assistance
Programs like Extra Help can significantly reduce your prescription costs if you qualify.
4. Get Professional Advice
Licensed Medicare agents or SHIP counselors can walk you through your options, so you don’t miss out on savings or better benefits.
Quick Reference: Projected 2026 Medicare Costs
| Medicare Benefit | 2025 Cost | 2026 Estimate |
|---|---|---|
| Part B Premium | $185/mo | $206.50/mo |
| Part B Deductible | $257 | $288 |
| Part D Premium* | — | $38.99/mo |
| Part D Deductible | $590 | $615 |
| Catastrophic Threshold | — | $2,100 |
| IRMAA Surcharge | — | +$8.60 to +$51.70/mo |
*Part D premiums vary by plan; this figure reflects the projected national average.
The Bottom Line
Medicare costs will be higher in 2026, but a little planning can make a big difference. Reviewing your plan, being strategic about your income, and exploring assistance programs can help you keep more money in your pocket while maintaining the coverage you need.