2026 Medicare Cost Overview
Medicare costs increase almost every year, driven by healthcare inflation, utilization trends, and legislative changes. For 2026, CMS has finalized new premiums and deductibles across all parts of Medicare. This guide covers every number you need to budget for healthcare in retirement.
Part A Costs (Hospital Insurance)
Most beneficiaries pay $0/month for Part A if they or their spouse paid Medicare taxes for at least 40 quarters (10 years). Those with 30-39 quarters pay a reduced premium; those with fewer pay the full amount.
| Part A Cost | 2026 Amount |
|---|---|
| Premium (40+ quarters) | $0/month |
| Premium (30-39 quarters) | $295/month |
| Premium (<30 quarters) | $518/month |
| Inpatient deductible | $1,724/benefit period |
| Days 1-60 coinsurance | $0/day |
| Days 61-90 coinsurance | $431/day |
| Lifetime reserve days (91-150) | $862/day |
| Skilled nursing facility days 21-100 | $215.50/day |
The Part A inpatient deductible applies per benefit period, not per year. A benefit period starts when you are admitted and ends after 60 consecutive days out of the hospital. Multiple hospitalizations in one year can mean paying the deductible multiple times.
Part B Costs (Medical Insurance)
The standard Part B premium for 2026 is $190.40/month — up from $185.00 in 2025. The Part B annual deductible is $264. After the deductible, Medicare covers 80% of approved charges and you pay 20% coinsurance with no annual limit under Original Medicare.
IRMAA: Income-Related Monthly Adjustment Amounts
Higher-income beneficiaries pay surcharges on both Part B and Part D premiums. IRMAA is based on your modified adjusted gross income (MAGI) from two years prior (2024 tax return for 2026 premiums).
| Individual MAGI | Couple MAGI | Part B Monthly | Part D Surcharge |
|---|---|---|---|
| $106,000 or less | $212,000 or less | $190.40 | $0 |
| $106,001–$133,000 | $212,001–$266,000 | $257.40 | $13.70 |
| $133,001–$167,000 | $266,001–$334,000 | $370.40 | $35.30 |
| $167,001–$200,000 | $334,001–$400,000 | $483.40 | $57.00 |
| $200,001–$500,000 | $400,001–$750,000 | $596.40 | $78.60 |
| Above $500,000 | Above $750,000 | $628.90 | $85.80 |
If your income dropped significantly due to a life-changing event — retirement, death of a spouse, divorce, or loss of income-producing property — you can file Form SSA-44 to request an IRMAA reduction based on more recent income.
Part D Costs (Prescription Drugs)
Part D premiums vary by plan and average approximately $46/month in 2026. The maximum Part D deductible is $590. The most significant cost protection is the $2,000 annual out-of-pocket cap — once your true out-of-pocket spending reaches that threshold, Medicare covers 100% of remaining drug costs for the year.
Medigap Premium Ranges by Plan
For beneficiaries on Original Medicare who purchase Medigap supplemental coverage, expect these typical 2026 monthly premium ranges:
- Plan G: $120–$350/month (most popular, comprehensive)
- Plan N: $80–$260/month (lower premium, small copays)
- Plan K: $50–$120/month (50% cost-sharing, OOP cap)
- High-Deductible Plan G: $30–$80/month ($2,870 deductible before coverage kicks in)
Total Annual Cost Estimates
| Coverage Combination | Estimated Annual Cost |
|---|---|
| Original Medicare + Plan G + Part D | $5,200–$8,400 |
| Original Medicare + Plan N + Part D | $4,200–$7,000 |
| Medicare Advantage ($0 premium MAPD) | $2,285 (Part B only) + copays |
These estimates do not include out-of-pocket drug costs, dental, vision, or hearing expenses. Use our state cost pages and procedure cost lookups to estimate your specific expenses.