Medicare Part B premiums will increase by nearly 10 percent in 2026, the second-largest hike in the program’s history.
Why It Matters
The increase comes at a time when health insurance costs are climbing steeply for people with employer plans and Affordable Care Act coverage. The upward trend adds pressure on Americans already facing affordability challenges, with the prices of food, utilities, and other essentials still high.
What To Know
The Centers for Medicare and Medicaid Services (CMS) has confirmed the standard monthly premium will rise to $202.90 next year, an increase of $17.90, or 9.7 percent.
Medicare Part B is the portion of Medicare that helps pay for outpatient medical services, including doctor visits, preventive care, lab tests, durable medical equipment, and some home health services. It’s optional, but most people enroll because it covers routine and medically necessary care not included in Part A. Part B requires a monthly premium, and beneficiaries typically pay coinsurance or copays for services after meeting an annual deductible. Enrollment usually begins around age 65 unless you qualify earlier due to disability.
The jump represents the second-largest dollar increase ever for a Part B premium, according to independent Social Security and Medicare analyst Mary Johnson. The biggest dollar rise—$21.60 a month—was in 2022.
While Part B premiums are just one part of overall spending, they are closely watched because they are typically deducted from retirees’ Social Security checks.
While Social Security checks will increase by 2.8 percent across the board next year, the Medicare premium jump will eat into this increase. The net annual cost-of-living adjustment (COLA) to Social Security benefits depends on the size of the Part B increase.
For the average retiree, who receives $2,008 per month as of August 2025, the $17.90 increase reduces the effective COLA to 1.9 percent. For lower-income beneficiaries receiving $1,000 per month, the effective COLA drops to just 1 percent.
However, not everyone will pay the full premium increase. If the rise exceeds your 2026 COLA, your monthly benefits will remain unchanged under a rule called the “hold harmless provision.” If your monthly benefit is below $640, your COLA would be less than $17.90—the amount of the premium increase. In that case, your benefit won’t decrease next year, but it also won’t increase.
What People Are Saying
The Centers for Medicare & Medicaid Services said in a press release: “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.”
Mary Johnson, an independent Social Security and Medicare policy analyst: “The public is likely to perceive this Part B increase as taking a significant chunk of or even most of their COLA. In other words, another continuation in relentless cost increases battering consumer finances.”
What Happens Next
Changes to the costs will begin in 2026.
