Medicare Part B Premiums Set to Rise

Medicare Part B premiums are projected to increase by almost 10% in 2026, marking the second-largest spike in the program’s history.

Why It Matters

This increase occurs alongside soaring health insurance costs for individuals on employer plans and those under the Affordable Care Act. As prices for essentials like food and utilities remain high, this trend adds even more strain for many Americans already grappling with affordability issues.

What You Should Know

The Centers for Medicare and Medicaid Services (CMS) has indicated that the standard monthly premium will rise by $17.90, approximately 9.7%, reaching $202.90 next year.

Medicare Part B covers outpatient medical services, such as doctor visits, preventive care, laboratory tests, medical equipment, and some home health services. Enrolling in Part B is not mandatory, yet most people choose to sign up, as it includes routine and necessary medical care that Part A does not. Beneficiaries generally pay a monthly premium and are responsible for coinsurance or copayments after meeting their annual deductible. Enrollment typically starts at age 65, unless an earlier disability qualifies an individual.

This upcoming increase represents the second-highest rise in Part B premiums ever recorded, according to Mary Johnson, an independent analyst focused on Social Security and Medicare. The most substantial increase in dollar terms occurred in 2022 when premiums rose by $21.60.

While Part B premiums are only a segment of overall expenditures, they’re closely watched since they are usually deducted from retirees’ Social Security payments.

Next year’s Social Security checks are set to rise by 2.8%, but the higher Medicare premiums will offset that increase. This means the real annual cost-of-living adjustment (COLA) for Social Security benefits is influenced by the rise in Part B premiums.

For an average retiree receiving $2,008 monthly as of August 2025, the $17.90 hike brings the effective COLA down to 1.9%. For low-income beneficiaries receiving $1,000, the effective COLA shrinks to just 1%.

Not everyone will necessarily pay the full increase, however. If the increase surpasses the COLA for 2026, your monthly benefit will remain unchanged due to a rule called the “Hold Harmless Clause.” For those with monthly benefits under $640, the COLA may not keep up with the $17.90 premium increase. In such cases, the benefits won’t decrease but also won’t see an increase next year.

Reactions

According to the Centers for Medicare and Medicaid Services, “The increases in Part B standard premiums and deductibles in 2026 are primarily due to anticipated price changes and expected usage increases consistent with historical experience.”

Mary Johnson noted, “The public will likely view this increase as substantially impacting the COLA. Ongoing cost increases continue to heavily affect consumer finances.”

Next Steps

Changes in costs will take effect starting in 2026.