Services You Thought Were 'Free' Now Carry Bigger Price Tags as Medicare 2026 Premiums Rise

Medicare premiums were once a relatively modest expense for older Americans. Even with slight increases each year, most retirees can absorb them. However, that era will soon fade. The newly announced Medicare 2026 premiums could place a heavy financial strain on seniors.

The sudden jump is untimely, given the rising cost of living expenses. While Social Security provides annual cost-of-living adjustments, those increases cannot keep pace with healthcare inflation.

The result is a widening gap between Medicare coverage and the out-of-pocket expenses of seniors. As premiums, deductibles, and cost-sharing rise, seniors must pay a larger share, especially those without supplemental coverage.

On 14 November 2025, the Centers for Medicare & Medicaid Services (CMS) released new premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs to take effect in 2026. CMS also released the 2026 Medicare Part D income-related monthly adjustment amounts.

Higher Premiums

The social insurance program had two original parts: Part A and Part B. Under Medicare Part A are expenses for inpatient hospital care, skilled nursing facility, hospice, inpatient rehabilitation, and some home health care services. About 99% of Medicare beneficiaries do not have a Part A premium. Most have at least 40 quarters of Medicare-covered employment, determined by the Social Security Administration.

The adjusted Medicare Part A inpatient hospital deductible if a beneficiary is admitted to the hospital will be $1,736 (£1,326), $60 (£46) higher than in 2025. Part A inpatient hospital deductible covers beneficiaries' share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.

In 2026, the coinsurance amount will increase from $434 (£331) per day to $429 (£327) for the 61st through 90th day of a hospitalization in a benefit period. For daily hospital coinsurance for lifetime reserve days, the amount will be $868 (£663) instead of $838 (£640).

If a beneficiary is in a skilled nursing facility, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $217 (£166) in 2026 ($209.50 or £160 in 2025).

The Social Security Act, using a formula, determines the Medicare Part B premium, deductible, and coinsurance rates, while the CMS administers the Medicare program. From $185 (£141) in 2025, the standard monthly premium for Medicare Part B will be $202.90 (£155) in 2026. All Medicare Part B beneficiaries will have to pay annual deductibles of $283 (£216) beginning in 2026.

The Sudden Impact

According to The Century Foundation, 64 million Americans on Medicare will be affected by forthcoming premium adjustments. Notably, it is the first time that the monthly Medicare premium has exceeded $200. The increase will also eat into Social Security benefits.

Additionally, the Medicare premium increase is the highest in four years, while the projected employer-sponsored insurance increase is the highest in 15 years. Furthermore, the impending premium increase in the health insurance marketplace for 2026 is the highest out-of-pocket cost increase for all types of coverage in history.

Jeanne Lambrew, director of health care reform at The Century Foundation, summed it up: 'In a world in which people are concerned about the affordability of health care and all other needs, it's pretty distressing that this increase is so large.'