If there’s one thing seniors can usually count on, it’s an increase in their Medicare premiums for the coming year.
2026 is no exception. In fact, for the first time ever, monthly base Medicare Part B premiums will cross the $200 threshold. Medicare deductible limits and coinsurance amounts will rise as well. The one silver lining is that monthly Medicare Part D prescription drug plan premiums may actually be lower. Medicare Advantage plan premiums may decrease as well.
Medicare Part A
Medicare Part A covers some, but not all, expenses incurred for inpatient hospital, skilled nursing facility, hospice, inpatient rehabilitation, and home health care services.
According to the Centers for Medicare and Medicaid Services, 99% of Medicare subscribers don’t pay any monthly premiums. To have these premiums waived, enrollees must have paid Medicare payroll taxes for at least ten years while employed.
Out of pocket costs for inpatient care
Those using Medicare A must pay a deductible covering their first 60 days of inpatient care. This deductible will rise from $1,676 in 2025 to $1,736 in 2026.
Patients who stay in the hospital for any time between 61 to 90 days will have to pay $434 per day in coinsurance (up from $419 in 2025).
Those who need more time will have to tap the 60 Medicare reserve days they’re allotted during their lifetime. These days will carry a daily coinsurance amount of $868 (up from $838 in 2025).
Out of pocket costs for skilled nursing care
Medicare Part A also covers a portion of skilled nursing care costs once the patient has paid for the first 20 days out of pocket. The daily coinsurance rate for days 21 through 100 will rise from $209.50 in 2025 to $217 in 2026. After day 100, patients will have to pay for the nursing home expenses on their own.
Medicare Part B
Medicare Part B covers outpatient hospital visits, some physicians’ services, durable medical equipment, some home health services other medical and health services not covered by Medicare Part A.
In 2026, the standard monthly Medicare Part B premium will rise to $202.90, an increase of $17.90 per month.
Deductibles
The annual deductible for Part B subscribers will rise from $257 in 2025 to $283 in 2026.
Medicare Part D
Medicare Part D covers some but not all expenses for prescription drugs. Since these policies are offered by private insurance companies, monthly premiums may vary.
However, it’s projected that in 2026 the average monthly Medicare Part D premium will be $34.50, which will be $3.81 less than it was in 2025.
The standard Part D annual deductible will rise to $615 in 2026, and the maximum total out-of-pocket expense limit will rise to $2,100 in 2026.
Medicare Advantage Plans
Also called Medicare Part C plans, Medicare Advantage plans are offered by private insurance companies that contract with Medicare to provide Medicare Part A and B coverage. Most of these plans also offer prescription drug coverage and some offer additional benefits like vision and hearing aid coverage.
Subscribers pay separate Medicare Advantage premiums on top of their standard Medicare Part B premiums. While Medicare Advantage premiums may vary, it’s been projected that the average monthly cost in 2026 will be $14, down from $16.40 in 2025.
If you have any questions about Medicare in general, a good resource is your local chapter of your State Health Insurance Assistance Program (SHIP). These local volunteer consultants can work with you at no charge to guide you through this process. To find a SHIP counselor in your area, visit https://www.shiphelp.org.
This material has been provided for general informational purposes only and does not constitute Medicare advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a Medicare consultant on any Medicare-related issues.
This article was authored by Michael Flaherty and Jeffrey Briskin. Michael is a senior financial advisor with Canby Financial Advisors, a SEC-registered investment adviser. SEC registration does not constitute an endorsement by the SEC nor a statement about any skill or training. Michael can be reached at 508.598.1082 or mflaherty@canbyfinancial.com. Jeffrey Briskin is Director of Marketing at Canby Financial Advisors.
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