Big Medicare Premium Increases Announced
Category: Medicare
November 18, 2025 – Medicare Part B Premium and Deductibles for 2026 have been announced, and the news is not good for beneficiaries. The standard Part B monthly premium will increase just under 10%, from $185 in 2025 to $202.90 in 2026. Unfortunately, the average 2026 Social Security COLA was only $56 (2.8%). That means the Medicare premium increase of $17.90 will consume about a third of the average recipient’s SS COLA .
The annual deductible for all Medicare Part B beneficiaries will increase $26 to $283 in 2026, up from the annual deductible of $257 in 2025.
The dramatic increase in premiums represents a continuing trend, as Medicare struggles to stay solvent. There are many reasons for the increase, but some of the most prevalent are the escalating payments to Medicare Advantage insurance companies and prescription drug costs. In 2020 the monthly premium was $144.60. Last minute changes to reimbursements from expensive skin replacement therapies, which many believe have been abused by doctors and insurance companies, helped keep the Part B increase below 10%.
Medicare Part B covers physicians’ services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A.
Higher income recipients pay more than the standard $202.90.
This chart shows the Medicare Part B premiums for higher income beneficiaries:
Part D Increases
Just like with Part B, many Part D plans are increasing premiums as well. The maximum allowed under the Part D Premium Stabilization Demonstration Program is $50, according to the nonprofit research organization KFF.
Want to Change Plans
The annual fall enrollment period is underway now, and runs through December 7th.
Comments:
Will your budget be severely impacted by the 2026 increases in Medicare Part B premiums? Would that influence your decision to move from traditional Medicare to Medicare Advantage, or vice versa. Let us know in the Comments section below.
Comments on "Big Medicare Premium Increases Announced"
Mike says:
According to the United States Congress Joint Economic Committee Medicare Part B Premiums are expected to double to nearly $5000 a year in 2035. Add the Part B premium increases with looming insolvency to Social Security and Medicare Part A seniors are in deep trouble.
The executive summary from the Committee's March 10, 2026 report:
• Medicare Part B premiums are higher because Medicare Advantage (MA) is overpaid. On average, covering
a beneficiary in MA costs an estimated 120 percent of what it would cost in Traditional Medicare (TM). MA
overpayments raise Part B spending, and because premiums are set to cover roughly one-quarter of expected costs, everyone in Part B pays more.
• The Joint Economic Committee estimates MA overpayments increased Part B premiums by $212 per
enrollee in 2025, totaling $13.4 billion in higher premiums. Since 2016, MA overpayments have added an
estimated $82 billion to Part B premiums. TM beneficiaries, who are not enrolled in MA, bore roughly $6 billion
of that burden.
• Higher Part B premiums reduce seniors’ net Social Security benefits. About 85 percent of the added
premium burden falls on individuals, with the remainder falling on state and federal taxpayers. For most
seniors, Part B premiums are withheld from Social Security checks. Therefore, increases in premiums directly
reduce take-home benefits for seniors.
• Seniors face a dramatic reduction in the affordability of Medicare Part B. By 2035, per-person premiums
are projected to double from $2,440 to about $5,000. Of that total, about $450 will be due to overpayments if
they continue at the same rate. Aligning MA payments with TM would prevent unnecessary premium growth,
increase the affordability of Medicare, and protect net Social Security checks.
https://www.jec.senate.gov/public/vendor/_accounts/JEC-R/issue-briefs/The%20Part%20B%20Premium%20Pass-Through.pdf?utm_source=substack&utm_medium=email