Seniors enrolled in Medicare Part B will face a significant increase in their healthcare costs starting in 2026. Federal officials have announced that monthly premiums and the annual deductible for the plan, which covers doctor visits and preventative care, are set to rise by nearly 10 percent.
This adjustment will see the standard monthly premium climb by $17.90 to $202.90, while the annual deductible will increase by $26 to reach $283. For many of the more than one million seniors in states like Minnesota, this increase will consume a substantial portion of their annual Social Security cost-of-living adjustment.
Key Takeaways
- The standard Medicare Part B monthly premium will increase to $202.90 in 2026, a jump of nearly 10%.
- The annual deductible for Part B will rise to $283, an increase of $26 from 2025.
- This premium hike will absorb more than a third of the average Social Security cost-of-living adjustment (COLA).
- Experts advise seniors to proactively review their healthcare coverage to find the best value for their needs.
A Closer Look at the 2026 Increases
The newly announced figures represent one of the more significant year-over-year increases for Medicare Part B in recent memory. The plan is a cornerstone of healthcare for millions of American seniors, covering essential outpatient services.
The monthly premium is scheduled to jump from its 2025 level to $202.90. This $17.90 increase directly impacts the monthly budget of retirees, many of whom are on fixed incomes. Similarly, the annual deductible—the amount a beneficiary must pay out-of-pocket before Medicare begins to pay its share—will rise to $283.
What is Medicare Part B?
Medicare Part B is a component of Original Medicare that provides medical insurance. It covers a wide range of outpatient services and supplies that are medically necessary to treat your health condition. This includes doctor's services, outpatient hospital care, ambulance services, durable medical equipment, and preventative services like flu shots.
The Squeeze on Social Security Benefits
The timing of this premium hike is particularly challenging as it coincides with a modest Social Security cost-of-living adjustment (COLA). For 2026, Social Security recipients are expected to see a 2.8% COLA, which translates to an average monthly increase of about $56.
However, the $17.90 monthly increase in the Medicare Part B premium will be automatically deducted from these Social Security checks. This means that for the average recipient, more than 31% of their COLA will be immediately consumed by rising healthcare costs before they ever see it.
COLA vs. Premium Hike
The average Social Security COLA increase of $56 per month will be significantly offset by the $17.90 monthly increase in Medicare Part B premiums, leaving many seniors with less disposable income than anticipated.
This dynamic creates a financial squeeze, leaving less money for other essential expenses like housing, food, and utilities, which have also been subject to inflation.
Expert Advice: Time to Re-evaluate Coverage
The rising costs and a changing landscape for insurance plans have prompted experts to urge seniors to be proactive. With fewer Medicare Advantage plans available in some regions this year, the choices can be more complex and the stakes higher.
Grant Rockwood, an insurance broker and owner of MN Benefits, advises against complacency. He emphasizes that the lowest upfront cost does not always equate to the best financial decision over the long term.
“I think you need to take a step back and look at how you actually use healthcare, that like a lot of things in life, a lower price tag on the front end doesn’t necessarily mean a better value,” Rockwood stated.
He suggests that individuals carefully consider their typical medical needs, prescription drug usage, and preferred doctors when comparing plans. A plan with a low premium might have a high deductible or limited network, leading to greater out-of-pocket expenses throughout the year.
Navigating Your Options with Urgency
The period for making changes to Medicare plans is limited, and experts stress the importance of acting quickly to avoid being locked into a suboptimal plan for the entire year. The complexity of the system can be daunting, but resources are available.
Rockwood recommends seeking personalized guidance to cut through the confusion.
“You do want to have a sense of urgency in finding a resolution, and likely the one that’s going to be able to give you the most direct, accurate, applicable information to your unique situation is a local, independent broker,” he added.
An independent broker can help compare different types of plans, including Original Medicare with a Medigap supplement versus various Medicare Advantage plans, to find the most cost-effective coverage based on an individual's health and financial situation.
Steps Seniors Should Consider:
- Review your current plan: Look at your Annual Notice of Change to see how your existing plan will be different in 2026.
- Assess your health needs: Make a list of your doctors, specialists, and prescription medications to ensure they are covered under any new plan you consider.
- Compare all available options: Do not automatically renew your current plan without checking to see if a better or more affordable option is available.
- Seek professional help: Consider consulting with a licensed, independent insurance agent who specializes in Medicare to receive unbiased advice.
As healthcare costs continue to climb, taking an active role in managing Medicare coverage has become more critical than ever for securing financial stability in retirement.
