Originally published on 11/17/25

After months of speculation, Medicare users finally have some insight into how much more their monthly premiums are going to cost in 2026. The increase, which will take effect in the new year, is expected to be significant—especially for Part B users. We break down what you need to know about Medicare premiums based on income in 2026, including if there are ways you can save on the government-issued insurance plans, below. 

Medicare premiums based on income 2026—a look at what to expect

Medicare costs have been a topic of conversation recently, especially since the government-funded health insurance plan is one of the issues that was heavily debated by Congress during the 2025 federal government shutdown. In the past, the cost was determined by income—something they call Income-Related Monthly Adjustment Amount (IRMMA)—with Part B costing an average of $185 a month and Parts A, C and D varying based on factors like usage and what other plans users have. 

In 2026, income will still play a part in monthly costs, but there are some substantial changes coming. Read on for the details. 

Part A is commonly used for hospital stays, nursing facility, hospice and inpatient rehabilitation. According to the Centers for Medicare & Medicaid Services (CMS), “Approximately 99% of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment, as determined by the Social Security Administration.” 

People enrolled in Part A will see their hospital deductible rise from $1,676 in 2025 to $1,736 in 2026. Users will also have to pay a coinsurance amount of $434 per day for the 61st through 90th day of a hospitalization, as opposed to the $419-a-day cost in 2025. For lifetime reserve days, the price jumps from $838 a day in 2025 to $868 per day in 2026. Finally, on Part A, for beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care will go from $209.50 a day to $217.00 a day. 

Part B, which covers outpatient services, home health services and medical equipment, will jump from an average cost of $185 a month to $202.90 per month—a 9.7 percent increase that could change based on income. 

Also changing: Part B’s annual deductible. In 2025 it was $257, but in 2026 it will go up to $283—a $26 increase. 

“The increase in the 2026 Part B standard premium and deductible is mainly due to projected price changes and assumed utilization increases that are consistent with historical experience,” according to a CMS press release. 

For Part D—the service that helps cover prescriptions—monthly premiums will jump up from $35 to $50 for people using it with other Medicare plans. That increase is significant for older adults who rely on the coverage to get the medications they need.

There is some good news on that front: For people on a standalone Medicare Part D plan, the price is expected to drop from $38 to $34, and people on Medicare Advantage plans will see Part D prices decrease, from $13 to $11. These users will also be able to enroll in an automatic prescription payment plan that will help spread out the cost of medications. 

“Approximately 8% of people with Medicare Part D pay these income-related monthly adjustment amounts. These individuals will pay the income-related monthly adjustment amount in addition to their Part D premium,” says the CMS. 

Along with the changes in plan prices, there will also be some updates to out-of-pocket expenses. People on Medicare Advantage will now have an out-of-pocket expense limit for in-network services of $9,250 instead of $9,350. For users on Part D plans, the annual cap on out-of-pocket expenses is expected to increase from $2,000 to $2,100, but the out-of-pocket cost of insulin for those users will remain at $35 per month. 

Experts warn that with these price increases, people on Social Security could see their 2026 cost of living adjustment (COLA) increase be fully wiped out. 

“This additional coverage and support can help translate into lower healthcare expenses and potentially improved wellbeing,” Ramsey Alwin, CEO of the National Council on Aging, said in a statement. This COLA will not even cover the projected increases in Medicare premiums and deductibles, which are expected to range between 4 percent and 12 percent.  Once again, older adults will have to make heart-wrenching decisions about whether to spend their fixed incomes on health care, food, or housing.”

CMS also warned people of this issue saying “Part D premiums vary by plan and, regardless of how a beneficiary pays their Part D premium, the Part D income-related monthly adjustment amounts are deducted from Social Security benefit checks or paid directly to Medicare. Roughly two-thirds of beneficiaries pay premiums [for Part D] directly to the plan while the remainder have their premiums deducted from their Social Security benefit checks.” 

How to save on Medicare in 2026

With the rising costs coming to Medicare in 2026, there are several ways you can save money. Whitney Stidom at eHealth, an online health insurance marketplace, says “choosing the right health coverage is essential to saving money and retaining access to quality care.” And since we’re in the open-enrollment period, now is the time to make those choices.

“When comparing Medicare coverage options, people should factor in prescriptions, preferred doctors and any chronic conditions they may need ongoing care for–smart choices that can potentially lead to over $1,800 in savings per year,” Stidom says. “Medical and financial needs can change over time, and the prescription drugs covered by Medicare plans can also change. Some online marketplaces enable people to provide a list of medications and preferred healthcare providers, and then get recommended plans based on those needs.”

She notes that 68 percent of Medicare users have at least one chronic condition, and for them, “it may be helpful to evaluate a chronic special needs plan (C-SNP). These plans, which are surging in popularity, can help lower prescription medication costs and can offer additional benefits specifically designed for people with qualifying chronic conditions. ”

“For example, people with diabetes may qualify for a diabetes-focused chronic special needs plan. These plans can provide improved coverage for blood glucose monitoring supplies or access to lifestyle programs focused on improving nutrition and exercise habits,” Stidom continues. “This additional coverage and support can help translate into lower healthcare expenses and potentially improved wellbeing. ”

Link to original: https://www.womansworld.com/healthcare/medicare-premiums-based-on-income-new-costs-and-savings-tips