Medicare Premium Increases Expected in 2026
Starting in 2026, Medicare premiums are anticipated to rise, potentially surpassing $200 monthly for the first time. This hike might diminish the cost-of-living adjustments for many Social Security recipients next year.
According to the Centers for Medicare and Medicaid Services, the premiums for Medicare Part B—which includes coverage for doctor visits and other outpatient services—are set to go up by 9.7%, bringing the monthly cost to $202.90. This increase, amounting to $17.90 from the current $185, marks the largest spike since a 15% rise in 2022.
The deductible for Part B, which is the amount seniors have to pay before their insurance kicks in, will see a similar increase, jumping roughly 10% from $257 this year to $283 next year.
Ann Montgomery, a senior health policy expert at the National Committee for the Maintenance of Social Security and Medicare (NCPSSM), noted that these Part B premium hikes are occurring at a rate three times that of inflation, primarily due to escalating base medical costs. Max Lichtman, the organization’s president and CEO, mentioned in a CBS News interview that these rising costs might leave seniors struggling to keep pace with inflation.
“Many individuals rely on Social Security as their primary income source,” he commented, adding that this situation is going to create challenges.
For next year, a 2.8% increase in Social Security benefits is expected, which translates to an additional $56 per month, raising the average Social Security check to about $2,071.
However, the increase in Medicare Part B premiums will consume roughly a third of that cost-of-living adjustment (COLA), effectively reducing the net increase to around 1.9%. Presently, the inflation rate is at 3%, as analyzed by NCPSSM, indicating that those with lower monthly benefits might end up with little or no COLA at all.
Continuing Rise in Medical Costs
Healthcare expenses are climbing for Americans, putting financial pressure on seniors and other demographics. In 2023, the average out-of-pocket medical spending per person was about $1,514, reflecting a 9% increase since 2020 when adjusted for inflation, according to KFF.
This month, the CMS observed that, aside from general medical inflation, Medicare costs are rising partly because of increased demand for healthcare services.
Moreover, working adults are also expected to deal with higher health insurance premiums in 2026. If Congress does not extend certain provisions, around 22 million Americans who acquire health insurance through Affordable Care Act marketplaces may experience substantial premium hikes. The expiration of premium tax credits at the end of 2025 has been a key concern amidst ongoing discussions about a possible government shutdown. Without an extension, many could see their costs potentially double in 2026, as estimated by KFF.
Employees with employer-funded insurance are likely to face premium increases as well. According to a consultant analysis by Mercer, most companies are expected to see a rise of about 6% to 7% in their 2026 insurance plans.
