Medicare Changes in 2026: What to Expect for Premiums, Deductibles, and Social Security

Projected Social Security Increase

Social Security beneficiaries are expected to see about a 2.7% cost-of-living adjustment (COLA) in 2026. That’s roughly $54 more per month for the average retiree.

But with Medicare costs rising across the board, many won’t actually feel that increase in their pocket.

Medicare Part B (Doctor and Outpatient Services)

• 2025 premium: $185
• 2026 projected premium: $206.50/month
  • That’s a $21.50 increase, or more than $250 extra per year.
• 2025 deductible: $257
• 2026 projected deductible: $288/year

Nearly half of the Social Security increase could be wiped out by Part B premiums alone.

Medicare Part D (Prescription Drugs)

• Out-of-pocket cap:
  • 2025: $2,000
  • 2026: $2,100
• Annual deductible:
  • 2025: $590
  • 2026: $610

The good news: if you take expensive medications, the $2,100 cap is still a huge improvement compared to the old “donut hole” rules from past years.

Medicare Part A (Hospital Coverage)

• 2025 deductible: $1,676 per benefit period
• 2026 projected deductible: $1,716

If you’re on a Medigap plan like Plan G or N, that deductible is covered. On Medicare Advantage, your out-of-pocket will depend on the plan.

Medicare Advantage Plans (Part C)

In 2026, carriers are expected to:

• Tighten provider networks
• Raise maximum out-of-pocket limits — some projected over $8,500/year
• Reduce certain extra benefits in some plans

If you’re on Medicare Advantage, it’s important to review your plan during open enrollment.

Higher-Income Surcharges (IRMAA)

For higher earners, IRMAA charges on Part B and Part D are projected to rise again in 2026, adding more to the monthly bill.

Quick Recap of 2026 Medicare Projections

• Part B premium: $206.50/month (up from $185)
• Part B deductible: $288/year (up from $257)
• Part D deductible: $610/year (up from $590)
• Part D out-of-pocket cap: $2,100/year (up from $2,000)
• Part A deductible: $1,716 (up from $1,676)
• Medicare Advantage: higher out-of-pocket limits, tighter networks
• IRMAA: surcharges increase for higher earners
• Social Security COLA: projected 2.7% increase (~$54/month) — but much of it could be offset by Medicare hikes

Final Thoughts

Yes, Social Security is going up in 2026, but Medicare costs are rising even faster. For many retirees, the net effect may feel like no raise at all.

This is why I always remind people — don’t just look at your Social Security increase. Pay attention to how much Medicare is taking out. That’s the number that really matters.

Need help comparing your plan with these changes in mind?
Call us at 800-208-4974 or book a free appointment. We’ll review your doctors, prescriptions, and budget to make sure you’re in the right plan for 2026.