Everything to Know About Rising Medicare Costs in 2026

You may have seen the headlines, and they’re true — Medicare costs will rise substantially in 2026. Prices have been climbing for years, of course, but this year’s increase is sharper, and it reflects the general state of the health care industry, where costs have been creeping up steadily.

The price for the standard Part B premium will rise above $200 for the first time, Medicare officials recently confirmed. Learn more about the bump, why it’s happening, and how it could impact you.

How Much Is Medicare Pricing Going Up?

According to numbers released in late November, the monthly Part B premium will increase 9.7% in 2026, to $202.90. To put the figure in perspective, that is a 66% increase over just 10 years ago. Part B covers hospital outpatient care, durable medical equipment and doctor’s visits, among other things.

The government will also establish a new high in 2026 for the Part B deductible, which will go up to $283 — a rise of 70.5% vs. a decade ago.

How Do Medicare Costs Compare to Social Security Increases?

Unfortunately, Social Security benefits payments will not see a corresponding bump. The 2026 cost-of-living adjustment (COLA) will be 2.8%, the government said in October. That means the Medicare pricing rise will eat up much of the COLA bump, effectively meaning those benefits won’t keep up with inflation.

Why Are Medicare Costs Rising?

Medicare is simply responding to market pressures being seen in the greater health care industry. Federal data finds that national health care expenditures are pacing ahead of gross national product growth. They were up by 8.2% in 2024, and there’s no indication that will slow.

Additionally, Part B costs have risen because health care is increasingly being sought in outpatient settings rather than hospitals. Plus, Medicare Advantage plan adoption is on the rise, and these plans can have lower upfront costs than traditional Medicare run by the government.

How to Navigate Rising Medicare Costs

Many seniors live on fixed incomes, and a pricing fluctuation of even a couple of percentage points can be difficult to square. Luckily, there are ways to plan for the coming price rise.

Low-income seniors may want to consider Medicare Savings Programs, federal assistance that can cover out-of-pocket costs as well as premiums. Even if you suspect your income is too high for this, you should check — the government says more than a third of eligible seniors don’t take advantage of the programs.

While increases for 2026 are notably steep, Medicare does increase most years, and it’s best to leave some flexibility with your health care costs for the future when making your plans. Jay can assist you as you look to the future and help you be ready for curveballs like this. Contact him today to discuss your unique situation.