Medicare Part B Premiums To Rise Nearly 10% In 2026, Cutting Into Social Security Benefits

Medicare officials have announced an increase of almost 10% to premiums for 2026, when the monthly cost will exceed $200.

The cost refers to the Medicare Part B premium, deductible and coinsurance rates, which are determined according to provisions of the Social Security Act. Part B covers physicians, outpatient hospital care, certain home health services, durable medical equipment and other services.

The standard monthly premium will be $202.90 in 2026, an increase of $17.90 from $185 in 2025. Meanwhile, the annual deductible will increase by $26 to $283, according to the Centers for Medicare and Medicaid Services (CMS).

“The increase in the 2026 Part B standard premium and deductible is mainly due to projected price changes and assumed utilization increases that are consistent with historical experience,” CMS said in a statement. 

According to CMS, the Trump administration’s action to address “unprecedented spending on skin substitutes” avoided an additional $11 per month in costs. Spending on skin substitutes is expected to drop by 90% without affecting patient care, the agency said.

Compared to a decade ago, annual Part B premiums will have increased 66%, while deductibles will have grown 70.5%.

Low-income seniors can enroll in programs that cover premiums, out-of-pocket costs and prescription drugs. In addition, since 2007, CMS has applied an income-related monthly adjustment amount, which affects roughly 8% of high-income beneficiaries with Part B coverage.

The Part B premium is deducted from retirees’ Social Security checks, which are expected to rise 2.8% in 2026. The premium will represent almost 14% of the average monthly payment from the Social Security Administration (SSA) to retirees in 2026, which is projected to increase to $2,056.

The nonprofit organization KFF estimates that 12% of the 61 million Medicare beneficiaries enrolled in Part B spent more than 10% of their annual per-capita income on Part B premiums in 2014. Another 5 million beneficiaries spent at least 8%.