Rising Premiums, Deductibles, and What It Means for Beneficiaries
The Centers for Medicare & Medicaid Services (CMS) has just rolled out the latest adjustments for Medicare Parts A and B (Click the link to view the official release from CMS), effective January 1, 2026. If you’re enrolled in Medicare or helping a loved one navigate it, these changes could impact your wallet. Announced late last week, the updates include hikes in premiums, deductibles, and copayments—largely due to rising healthcare costs and increased service usage.
Quick Refresher on Medicare Basics
- Part A: Focuses on inpatient care, like hospital stays, skilled nursing facilities, and hospice.
- Part B: Covers outpatient services, such as doctor visits, preventive care, and durable medical equipment.
- Part D: Handles prescription drug coverage (more on income adjustments below).
These programs serve millions of Americans, but costs are on the rise. Here’s what’s changing.
Part B: Premiums and Deductibles on the Upswing
The standard monthly premium for Part B is jumping to $202.90 in 2026—that’s a $17.90 increase from 2025’s $185.00. This affects most beneficiaries, but keep in mind:
- The annual deductible is also climbing to $283, up $26 from $257 in 2025.
- CMS points to projected price increases and higher utilization of medical services as the main drivers.
For higher earners, there’s an extra layer: About 8% of Part B enrollees face income-related monthly adjustment amounts (IRMAA). If your adjusted gross income exceeds $109,000 (or $218,000 for joint filers), expect a surcharge on top of the standard premium. These tiers scale up based on income, so check your tax returns to see if you’ll be affected.
Part A: Higher Costs for Hospital and Nursing Care
Part A remains premium-free for about 99% of beneficiaries who have sufficient work history (at least 40 quarters of covered employment). But for those who don’t qualify, a monthly premium may apply. The bigger news is in the deductibles and coinsurance:
- The inpatient hospital deductible rises to $1,736 per benefit period, a $60 bump from $1,676 in 2025. This covers your share for the first 60 days of a hospital stay.
- Extended stays get pricier too:
- Days 61-90 in the hospital: $434 per day (up from $419).
- Skilled nursing facility care (days 21-100): $217 per day (up from $209.50).
If you’re planning for potential hospital needs, budgeting for these could be crucial—especially since benefit periods reset after 60 days without inpatient care.
Part D: Income Adjustments for Prescription Drugs
Higher-income folks aren’t off the hook for Part D either. Around 8% of participants will pay an IRMAA on top of their plan’s premium. For 2026:
- Incomes $109,000–$137,000 (individuals) or $218,000–$274,000 (couples): Add $14.50 monthly.
- Adjustments escalate with income, topping out at $91.00 per month for the highest brackets.
This is separate from your base Part D plan cost, so if you’re in a higher tax bracket, factor this in when shopping for coverage during open enrollment.
Why These Changes Matter—and What to Do Next
Healthcare inflation is real, and these adjustments reflect broader trends in medical pricing and demand. For most people, the increases are modest but cumulative, especially if you’re on a fixed income. If you’re concerned about affordability:
- Review your Medicare options during the annual enrollment period (October 15–December 7).
- Consider Medicare Advantage plans or supplements that might offset some costs.
- Low-income beneficiaries may qualify for assistance programs like Extra Help for Part D.
- HealthyWayRx can help you save more on your prescription drugs.