Medicare Part B Costs Are Rising for 2026

Medicare costs are not static. Each year, the standard premium and deductible levels can change, and those changes can ripple through a retiree’s monthly budget and early-year out-of-pocket spending. CMS released the official 2026 Medicare premiums and deductibles, including updated Part A and Part B figures.

2026 Medicare Part B: The Two Numbers Most Retirees Feel

For many retirees, Part B is the most visible annual change because it affects:

• Monthly cash flow (the Part B premium is typically paid monthly, often withheld from Social Security).
• Early-year out-of-pocket costs (the Part B deductible can influence how quickly medical spending ramps up in January and February).

For 2026, CMS announced the following:

Item	2026 Amount	Why It Matters
Standard Part B Monthly Premium	$202.90	Affects ongoing monthly budgeting and income coordination.
Part B Annual Deductible	$283	Can increase early-year medical out-of-pocket spending before coinsurance applies.

Part A Changes: Hospital Cost-Sharing Also Moved

Even retirees who focus on Part B should keep an eye on Part A cost-sharing, since hospital-related expenses can be among the largest “surprise” healthcare costs in retirement.

Part A Cost Item	2026 Amount	Planning Note
Inpatient Hospital Deductible (per benefit period)	$1,736	A single hospital admission can create a meaningful deductible event.
Daily Hospital Coinsurance (Days 61–90)	$434/day	Longer stays can quickly turn into a multi-thousand-dollar expense.
Skilled Nursing Facility Coinsurance (Days 21–100)	$217/day	Important for contingency planning and reserve building.

Who Feels These Changes the Most?

• New Medicare enrollees building their first “real” retirement healthcare budget.
• Households with tight monthly margins where premiums reduce flexibility.
• Retirees coordinating multiple income sources who rely on predictable monthly spending bands.
• Higher-income households who may also be subject to income-related adjustments (IRMAA) depending on circumstances.

Practical Checklist: Update Your 2026 Retirement Budget

• Adjust your monthly budget line for the Part B premium.
• Increase your “January/early-year” reserve for the Part B deductible.
• Add a contingency line for Part A hospital cost-sharing, even if you expect a healthy year.
• If your income fluctuates, note that Medicare premiums can be income-sensitive and may warrant proactive monitoring.
• Keep healthcare costs in the same planning conversation as inflation, housing, and taxes—because they compete for the same retirement dollars.

Why This Matters in a Retirement Income Plan

Retirement planning often succeeds or fails in the details—especially recurring, unavoidable costs. Medicare premium and deductible updates are not “headline” news, but they can materially affect how much reliable income you want available for baseline expenses before discretionary spending begins.

Source: CMS. Read the original release.