Plan for Higher Health Care Costs in 2026: Projected Medicare Part B and Part D Premiums
In 2026, Medicare participants will pay more for their health care. Part B costs are expected to rise more than 10%. Here's what you can do.


Medicare premiums and deductibles typically increase annually. Part B premiums are expected to rise 11.6% in 2026, nearly double the six percent jump in 2025, according to the 2025 Social Security and Medicare Trustees Report (page 204). The report projects a $206.50 monthly premium for next year, up $21.50 or 11.6% from 2025 and the largest Part B increase in dollar terms since 2022, when premiums rose by $21.60.
The premium for Medicare Part D is different from the Part B premiums in a few ways. Unlike Part B, Part D is sold by private companies as a standalone policy to those enrolled in traditional Medicare. It is also sold to beneficiaries with Medicare Advantage plans that don't include prescription drug coverage.
The actual premium that a beneficiary pays varies according to the plan in which the beneficiary enrolls. That's why the average paid premium for Part D has always been lower than the base beneficiary premium listed in the Trustees report. For 2026, the base premium for Part D is projected to be $38.99.

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The projected Part B increase impact on Social Security benefits
How might prices rise even more? Well, the 2026 Social Security COLA is projected to rise between 2.6% and 2.7%. In terms of dollars, if implemented now, that would translate into an increase of $54.14 per month or $649.68 per year, when using the average Social Security check amount for June 2025 ($2,005.05) as the base amount.
The Social Security Administration (SSA) automatically deducts the Part B premium cost from the Social Security benefits of most Medicare recipients. That would effectively reduce the increase to the average Social Security check from $54.14 to $32.66, after subtracting the projected Part B increase ($21.50) from the projected 2026 COLA raise ($54.14). In that scenario, the Part B increase will consume almost 40% of the monthly increase.
Medicare Part B premiums in 2026
Medicare Part B pays for doctor visits, outpatient care and some home health care. When enrolled, you pay both a deductible and a monthly premium. For 2026, the premium is currently projected to rise 11.6% to $206.50, up $21.50 from $185.00 in 2025.
The Part B deductible is projected to be $288.00 in 2026. That would be a $31.00 increase over the 2025 amount of $257.00. On a percentage basis, it's an increase of 11.2%, in line with the estimated increase of the Part B premium.
Understanding Medicare Part D Premiums
Unlike Part B, there isn't a single "standard" Part D premium as it varies by plan. However, the average monthly Part D premium has been relatively stable due to a premium stabilization demonstration that was put in place as part of the Inflation Reduction Act(IRA). The continuation of this demonstration for 2026 is a key factor in keeping Part D costs down.
The premium stabilization provision of the IRA limits the amount of the higher costs of Part D drug coverage that plan sponsors can pass on to Medicare enrollees through premium increases. The IRA caps the annual base beneficiary premium (BBP) growth at 6% in 2025. The cap is enforced through increased Medicare subsidies paid directly to plan sponsors.
Annual deductible: The standard Part D deductible is projected to increase to $615 in 2026, up from $590 in 2025.
Out-of-pocket spending cap: A positive change coming in 2026 is the annual out-of-pocket spending cap for prescription drugs under Part D, which will rise to $2,100. This is an increase from the $2,000 limit in 2025. Once beneficiaries reach this cap, they will no longer pay out-of-pocket costs for covered prescription drugs for the remainder of the year.
The value of tracking the projected premiums
Medicare open enrollment runs from October 15 to December 7 annually. During this period, you can switch from original Medicare to a Medicare Advantage plan, or vice versa. You can also choose a new Advantage plan or Medicare Part D prescription drug coverage.
To get the most from your plan, it’s important to understand your out-of-pocket costs for premiums, which will vary depending on your plan and income. For instance, you could also owe a monthly surcharge on Medicare Part B and Part D premiums based on an income-related monthly adjustment amount (IRMAA).
Your IRMAA liability for 2026 will be based on the MAGI shown on your 2024 return. While you can't do anything to change your 2024 tax return, you can look over your finances to see if you are in danger of paying the IRMMA in 2027, which will be based on your yet-to-be-filed 2025 tax return.
Income planning can go a long way in limiting your exposure to the surcharge. For instance, a well-timed Roth conversion can reduce your taxable income and eliminate required minimum distributions (RMD).
The Centers for Medicare & Medicaid Services (CMS) has started releasing information for plan year 2026. In the lead-up to the release of the new premium and deductible amounts, the CMS has adopted some new rules and updated existing numbers in preparation for the open enrollment season that begins in October. Check out these six Medicare Changes Coming in 2026 and check back periodically; I will be adding to the list as more information becomes available.
Projections for Medicare Part B and Part D premiums for 2026 are primarily derived from the annual Medicare Trustees Report. While the final figures are usually announced by CMS in October of the preceding year (so, October 2025 for 2026 premiums), the Trustees Report provides strong estimates.
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Donna joined Kiplinger as a personal finance writer in 2023. She spent more than a decade as the contributing editor of J.K.Lasser's Your Income Tax Guide and edited state specific legal treatises at ALM Media. She has shared her expertise as a guest on Bloomberg, CNN, Fox, NPR, CNBC and many other media outlets around the nation. She is a graduate of Brooklyn Law School and the University at Buffalo.
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