How Much Does Medicare Cost in 2026? A Complete Breakdown of Premiums, Deductibles, and Out-of-Pocket Costs

Medicare is not a single program with a single price tag. It is a collection of parts, each with its own premiums, deductibles, coinsurance rates, and out-of-pocket rules. What you actually pay depends on which parts you enroll in, your income, how much healthcare you use, and whether you add supplemental coverage.

This guide breaks down every Medicare cost for 2026 — from the premiums deducted from your Social Security check to the coinsurance you owe at the hospital. Whether you are turning 65 or already enrolled, this is your complete reference.

Overview of Medicare Costs in 2026

Medicare has four main parts. Part A covers hospital and inpatient care. Part B covers outpatient services and doctor visits. Part C, known as Medicare Advantage, is a private-plan alternative for receiving Part A and Part B benefits through insurers like UnitedHealthcare, Humana, and Aetna. Part D covers prescription drugs. Many beneficiaries also purchase a Medigap (Medicare Supplement) policy to fill cost-sharing gaps under Original Medicare.

The Centers for Medicare and Medicaid Services (CMS) updates costs annually, typically announcing new figures each fall. For 2026, premiums and deductibles have risen across most parts, reflecting rising healthcare costs nationally. However, the Inflation Reduction Act continues to deliver meaningful prescription drug savings that offset some of the increases.

Here is a quick summary of the key 2026 numbers:

• Part A premium: $0 for most; up to $565/month without sufficient work history
• Part B premium: $202.90/month standard; higher with IRMAA
• Part A hospital deductible: $1,736 per benefit period
• Part B deductible: $283 per year
• Part D base premium: $38.99/month (national base); actual premiums vary by plan
• Part D out-of-pocket cap: $2,100 per year (Inflation Reduction Act)

Part A Costs: Hospital Insurance

Part A covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health services. Most people pay no premium because they or a spouse paid Medicare taxes for 40 or more quarters. Those with 30 to 39 quarters pay $311 per month, and those with fewer than 30 quarters pay the full premium of $565 per month.

The Part A deductible is $1,736 per benefit period in 2026. A benefit period begins at hospital admission and ends after 60 consecutive days out of the hospital. There is no limit on how many benefit periods you can have per year, so you could owe this deductible multiple times.

After the deductible, hospital coinsurance is $0 for days 1 through 60, $434 per day for days 61 through 90, and $868 per day for lifetime reserve days 91 and beyond. You get 60 lifetime reserve days total — they never renew. After those are exhausted, you pay all costs.

For skilled nursing facility care after a qualifying three-day hospital stay, Medicare covers the first 20 days fully. Days 21 through 100 cost $217.50 per day in coinsurance. After day 100, Medicare pays nothing. A full 100-day skilled nursing stay could cost over $17,000 in coinsurance alone — one of the strongest arguments for supplemental coverage like Medigap, which covers this cost-sharing on most plan types.

Part B Costs: Medical Insurance

Part B covers doctor visits, outpatient care, preventive services, durable medical equipment, and ambulance services. Everyone who enrolls in Part B pays a monthly premium. The standard Part B premium is $202.90 per month in 2026, typically deducted directly from your Social Security check. If you are not yet receiving Social Security benefits, Medicare will bill you quarterly.

The annual Part B deductible is $283. After meeting it, you pay 20% of the Medicare-approved amount for most services. Critically, Original Medicare has no annual out-of-pocket maximum for Part B. A $50,000 outpatient surgery means $10,000 out of your pocket with no cap. This is the primary reason many beneficiaries pair Original Medicare with Medigap or choose Medicare Advantage.

Higher-income beneficiaries pay more through IRMAA, the Income-Related Monthly Adjustment Amount. IRMAA for 2026 is based on your 2024 tax return. The full bracket table appears later in this article.

Part C Costs: Medicare Advantage

Medicare Advantage plans are offered by private insurance companies approved by Medicare. They provide all your Part A and Part B benefits, often bundled with Part D drug coverage, dental, vision, hearing, and sometimes extras like gym memberships and over-the-counter allowances. About half of all Medicare beneficiaries are now enrolled in Medicare Advantage, drawn by the lower premiums and bundled benefits.

You still pay the $202.90 Part B premium regardless of which Medicare Advantage plan you choose. Many plans charge $0 in additional monthly premiums, though plans with richer benefits may charge $20 to $150 or more. Every plan must include an annual out-of-pocket maximum — the CMS ceiling for in-network costs is $9,350 in 2026, though many plans set their limits between $3,500 and $7,550.

Instead of the flat 20% coinsurance of Original Medicare, Medicare Advantage uses copays and coinsurance that vary by service. A primary care visit might cost $0 to $20, a specialist visit $25 to $50, and an inpatient stay $300 to $500 per day for the first several days. The trade-off: lower premiums and extra benefits in exchange for provider network restrictions and per-service cost-sharing.

Part D Costs: Prescription Drug Coverage

Part D covers prescription drugs through private plans, either standalone or bundled into Medicare Advantage. The national base beneficiary premium is $38.99 per month in 2026, though actual plan premiums range from under $10 to over $100 depending on the formulary. The maximum Part D deductible is $615; many plans set it lower or waive it for certain tiers.

The most significant change is the $2,100 annual out-of-pocket cap from the Inflation Reduction Act. Once your true out-of-pocket drug spending reaches $2,100, you pay $0 for covered drugs the rest of the year. This replaces the old catastrophic phase where beneficiaries still owed 5% of costs indefinitely.

Part D costs flow through three phases:

1. Deductible phase: You pay full cost until you meet your plan's deductible (up to $615).
2. Initial coverage phase: You pay copays or coinsurance — typically $0 to $47 for generics and 25% to 33% for brand-name drugs — until out-of-pocket costs reach $2,100.
3. Catastrophic coverage: After reaching $2,100, you pay $0 for all covered Part D drugs for the rest of the year.

Part D also offers a Medicare Prescription Payment Plan that lets you spread out-of-pocket drug costs in monthly installments with no interest or fees.

Medigap Costs: Medicare Supplement Insurance

If you choose Original Medicare, a Medigap policy can dramatically reduce your out-of-pocket costs by covering the deductibles, coinsurance, and copayments that Parts A and B leave behind. There are 10 standardized plan types — A, B, C, D, F, G, K, L, M, and N — with benefits defined by the federal government. A Plan G from one company covers the exact same benefits as a Plan G from any other company; only the premium differs. Plans C and F are closed to anyone newly eligible after January 1, 2020 because they cover the Part B deductible.

Plan G is the most popular plan for new enrollees. It covers everything except the annual Part B deductible ($283). Premiums range from $120 to $250 per month for a 65-year-old, averaging $150 to $175 nationally.

Plan N is the second most popular. It requires up to $20 copays for some office visits, up to $50 for non-admission ER visits, and does not cover Part B excess charges. Premiums are 15% to 30% lower than Plan G — typically $90 to $190 per month.

Medigap does not include prescription drug coverage. Your total monthly stack on the Original Medicare pathway is the Part B premium plus Medigap plus a standalone Part D plan — typically $350 to $450 per month combined for a 65-year-old with Plan G.

Late Enrollment Penalties

If you do not sign up for Medicare when you are first eligible and you do not have qualifying coverage that allows you to delay, Medicare will charge you penalties that increase your premiums. In most cases, these penalties are permanent — they stay with you for as long as you have that coverage.

Part A penalty: Applies only to people who pay for Part A. Your premium increases by 10%, and you pay it for twice the number of years you delayed.

Part B penalty: The most common and harshest penalty. Your premium increases by 10% for each full 12-month period you were eligible but not enrolled, and the penalty is permanent. Three years of delay means a 30% surcharge — an extra $60.87 per month in 2026 — for the rest of your life.

Part D penalty: If you go 63 or more days without creditable drug coverage, you face a permanent penalty of 1% of the national base premium ($38.99) per uncovered month. Twenty-four months without coverage adds approximately $9.40 per month to your Part D premium for life.

IRMAA Brackets: Higher Premiums for Higher Incomes

IRMAA is a surcharge on Part B and Part D premiums based on your modified adjusted gross income from two years prior. For 2026, Social Security uses your 2024 tax return. Here are the brackets — individual thresholds are listed first, with married filing jointly in parentheses:

• $106,000 or less ($212,000 or less): Standard $202.90 Part B premium. No IRMAA.
• $106,001 to $133,500 ($212,001 to $267,000): $284.00 Part B; ~$13.70 Part D surcharge.
• $133,501 to $167,000 ($267,001 to $334,000): $405.80 Part B; ~$35.30 Part D surcharge.
• $167,001 to $200,000 ($334,001 to $400,000): $527.50 Part B; ~$57.00 Part D surcharge.
• $200,001 to $500,000 ($400,001 to $750,000): $649.30 Part B; ~$78.60 Part D surcharge.
• Above $500,000 (above $750,000): $649.30 Part B; ~$85.80 Part D surcharge.

If a life-changing event — retirement, death of a spouse, divorce, loss of pension — significantly reduced your income, file Form SSA-44 with Social Security to request a redetermination based on current income.

Assistance Programs: Help Paying for Medicare

If Medicare costs are a financial burden, several federal and state programs can help. Millions of beneficiaries qualify for assistance but never apply — often because they do not know these programs exist. Here are the major options.

Medicare Savings Programs (MSPs)

These state Medicaid programs help pay Medicare premiums and sometimes deductibles and coinsurance. There are four levels:

• Qualified Medicare Beneficiary (QMB): Pays Part A premium, Part B premium, deductibles, coinsurance, and copayments. Income up to 100% of the federal poverty level.
• Specified Low-Income Medicare Beneficiary (SLMB): Pays the Part B premium. Income 100% to 120% of poverty.
• Qualifying Individual (QI): Pays the Part B premium. Income 120% to 135% of poverty. Must reapply annually.
• Qualified Disabled and Working Individuals (QDWI): Pays Part A premium for people under 65 who lost premium-free Part A after returning to work. Income up to 200% of poverty.

Extra Help (Low-Income Subsidy) for Part D

Extra Help pays for part or all of your Part D premium, deductible, and copays. In 2026, you may qualify if your annual income is below approximately $22,590 for individuals or $30,660 for couples, with limited resources. Apply through Social Security at ssa.gov or call 1-800-772-1213. Enrollment in any Medicare Savings Program automatically qualifies you for Extra Help.

SHIP Counseling

Every state has a State Health Insurance Assistance Program (SHIP) offering free, unbiased Medicare counseling. SHIP counselors help you compare plans, apply for assistance, and navigate enrollment. They do not sell insurance. Find yours at shiphelp.org or call 1-877-839-2675.

Cost Scenarios: Original Medicare + Medigap vs. Medicare Advantage

Comparing total costs requires looking beyond monthly premiums. Here are two scenarios for a 66-year-old in 2026.

Scenario 1: Original Medicare + Medigap Plan G + Part D

• Part B premium: $202.90/month
• Medigap Plan G: ~$160/month
• Part D plan: ~$40/month
• Total monthly: ~$403 | Annual premiums: ~$4,836

Your only additional medical cost is the $283 Part B deductible. Add up to $2,100 in Part D drug costs, and your worst-case annual total is roughly $7,219. In a low-use year, expect $5,000 to $5,500.

Scenario 2: Medicare Advantage (HMO With Drug Coverage)

• Part B premium: $202.90/month
• Plan premium: $0 (common for many MA plans)
• Total monthly: ~$203 | Annual premiums: ~$2,435

In a healthy year with few visits, total costs might be $2,800 to $3,500 — less than Medigap. But a hospitalization and specialty care could push costs to the plan's out-of-pocket max of $5,000 to $8,000, making the annual total $7,400 to $10,400.

Original Medicare with Medigap costs more monthly but keeps out-of-pocket costs predictable regardless of care needs. Medicare Advantage saves on premiums but introduces cost variability. Neither is universally better — the right choice depends on your health, budget, provider preferences, and comfort with financial uncertainty.

The Bottom Line

Medicare in 2026 is not free and it is not simple. Even with premium-free Part A, you are looking at a minimum of $202.90 per month for Part B, plus whatever you spend on drug coverage, supplemental insurance, and out-of-pocket costs at the point of care. The total can range from roughly $2,500 per year for a healthy Medicare Advantage enrollee who rarely uses services to well over $10,000 per year for someone with significant healthcare needs on any pathway.

The good news: 2026 brings real protections. The $2,100 Part D out-of-pocket cap shields high-cost drug users from financial catastrophe. The Prescription Payment Plan spreads costs across the year. And programs like Medicare Savings Programs and Extra Help are available to millions who may not know they qualify.

Review your options during the Annual Election Period each fall. Use the Medicare Plan Finder at Medicare.gov to compare plans. And if you need guidance, call your local SHIP for free, unbiased counseling. The costs are real, but so are the tools to manage them.