If you are on Medicare, or approaching eligibility, 2026 brought a cost increase you cannot afford to ignore.
The standard Medicare Part B premium jumped from $185 to $202.90 per month in 2026. That is a nearly 10% increase in a single year, and the first time the Part B premium has ever exceeded $200. The Part B deductible rose 10% as well, from $257 to $283. And the Part A hospital deductible increased to $1,736, up $60 from last year.
These are official numbers from the Centers for Medicare & Medicaid Services (CMS), and they affect every Medicare enrollee in the country, including every retiree and pre-retiree we work with locally in Connecticut/New York and across the country.
There is also a deadline that makes this post time-sensitive: if you are enrolled in a Medicare Advantage plan and want to make a change, you have until March 31, this Tuesday, to act. After that, most people cannot switch plans again until October.
As a financial advisor serving families across the country for over 30 years, here is what you need to understand: what changed, what it costs in real dollars, and what action you should consider taking this week.
Every year, CMS adjusts Medicare premiums and deductibles based on projected healthcare costs. In 2026, those adjustments were larger than usual across every part of the program. Here is the complete picture, directly from CMS.
| Cost Item | 2025 | 2026 | Change |
| Part B Monthly Premium | $185.00 | $202.90 | +$17.90 (+9.7%) |
| Part B Annual Deductible | $257 | $283 | +$26 (+10.1%) |
| Part A Hospital Deductible | $1,676 | $1,736 | +$60 (+3.6%) |
| Part A Days 61–90 Coinsurance | $419/day | $434/day | +$15/day |
| Skilled Nursing Days 21–100 | $209.50/day | $217.00/day | +$7.50/day |
| Part D Avg Base Premium | $36.78/mo | $38.99/mo | +$2.21/mo |
| Part D Annual Deductible | $590 | $615 | +$25 |
| Part D Out-of-Pocket Cap | $2,000 | $2,100 | +$100 |
| Source: Centers for Medicare & Medicaid Services, November 14, 2025 official announcement. Standard amounts shown. IRMAA surcharges apply above $109,000 (individual) / $218,000 (joint). See IRMAA section below. |
The Part B increase matters most for the average retiree because most people have it deducted directly from their Social Security check. That means the 2026 COLA of approximately $56/month was effectively reduced to about $38/month for most recipients after the $17.90 premium hike was taken out.
In other words, the raise meant to help you keep pace with inflation was immediately offset by a healthcare cost increase. This has played out repeatedly over the past decade and shows no sign of reversing.
Here is the figure I want every pre-retiree to sit with: according to Health View Services, a health spending analytics firm, average projected lifetime healthcare costs for a healthy 65-year-old couple retiring in 2026 are $955,411, when premiums, deductibles, copays, hearing, vision, and dental are included across Medicare Parts B, D, and supplemental insurance.
The premium portion alone is $688,996. And that does not include long-term care, a separate, and potentially larger, expense.
Most families we work with have never seen a number like this in a retirement planning conversation. Healthcare was a line item. That gap between what people expect to spend and what they actually spend on healthcare in retirement is one of the most consistent planning failures I see after 30 years in this field.
The 2026 cost increases are not catastrophic on their own. But they are another increment in a long-running trend that compounds year after year. The families who plan for healthcare specifically, who build a dedicated reserve, understand Medicare’s gaps, and think about IRMAA before it hits, are the ones who are not surprised.
| TIME-SENSITIVE: Medicare Advantage Open Enrollment ends March 31, 2026, this Tuesday. If you are on a Medicare Advantage plan and want to make a change, you have until Tuesday. After March 31, most enrollees cannot change plans again until October 15, 2026. |
More than half of all Medicare beneficiaries, approximately 34 million people, are enrolled in Medicare Advantage (Part C). If you are one of them, you have a narrow window this week to act.
During the Medicare Advantage Open Enrollment Period (January 1 – March 31), you can:
You get one change. Any change made by March 31 takes effect April 1.
If you are thinking about switching from Medicare Advantage back to Original Medicare, be aware: Medigap supplement plans may not be available to you at standard rates outside your original enrollment window.
Insurance companies can charge higher premiums, impose waiting periods, or deny coverage based on health status in most states, outside that initial six-month Medigap open enrollment period when you first turn 65. Connecticut has some consumer protections, but they are not unlimited.
Before making this switch, contact your State Health Insurance Assistance Program (SHIP) or a Medicare specialist to confirm what Medigap coverage you qualify for first. Do not switch without knowing.
| Have Questions About Your Medicare Coverage? John helps retirees across the country build retirement income plans that account for Medicare gaps, IRMAA exposure, and healthcare costs. The March 31 deadline is this Tuesday.→ Schedule a Free 15-Minute Review → jdavenportassociates.com/contact-us |
There is a Medicare surcharge that surprises many retirees, and the 2026 thresholds affect more people than most expect.
IRMAA (Income-Related Monthly Adjustment Amount) is an extra premium charged on Medicare Part B and Part D for higher-income beneficiaries. In 2026, it begins at $109,000 in Modified Adjusted Gross Income for individuals, or $218,000 for married couples filing jointly.
If your income exceeds those thresholds, your total monthly Part B premium is significantly higher than the standard $202.90.
| Individual Income | Joint Income | Monthly Part B Premium | Extra Annual Cost |
| Up to $109,000 | Up to $218,000 | $202.90 | $0 |
| $109,001 – $137,000 | $218,001 – $274,000 | $284.10 | +$976/yr |
| $137,001 – $164,000 | $274,001 – $328,000 | $365.90 | +$1,957/yr |
| $164,001 – $191,000 | $328,001 – $382,000 | $447.30 | +$2,934/yr |
| $191,001 – $500,000 | $382,001 – $750,000 | $530.90 | +$3,937/yr |
| Over $500,000 | Over $750,000 | $689.90 | +$5,843/yr |
| IRMAA is a cliff system — $1 over a threshold triggers the full surcharge for that tier.Income used is your 2024 MAGI. Source: CMS / SSA, November 2025. |
Three things most retirees do not know about IRMAA:
Even with all these increases, Medicare has significant coverage gaps that apply to virtually everyone.
This is why the choice between Medicare Advantage and Original Medicare with a Medigap supplement is one of the most consequential decisions in a retirement plan, and why it deserves more than a five-minute conversation at age 64.
These are the questions I hear most often from families approaching Medicare eligibility or reviewing their current plan.
| Q: How much is the Medicare Part B premium in 2026? |
| The standard monthly Medicare Part B premium in 2026 is $202.90, up $17.90 (nearly 10%) from $185 in 2025. This is the first time the standard Part B premium has exceeded $200 per month. Higher-income beneficiaries pay more through IRMAA, with total monthly premiums ranging from $284.10 to $689.90 depending on 2024 income. |
| Q: What is the Medicare Advantage open enrollment deadline in 2026? |
| The Medicare Advantage Open Enrollment Period (MA OEP) runs January 1 through March 31, 2026. If you have a Medicare Advantage plan, you can use this window to switch to a different Medicare Advantage plan or return to Original Medicare. You get one change. Any change made by March 31 takes effect April 1. After March 31, most enrollees cannot change plans again until October 15, 2026. |
| Q: What is IRMAA and will it affect my Medicare premiums? |
| IRMAA (Income-Related Monthly Adjustment Amount) is a surcharge added to Medicare Part B and Part D for higher-income beneficiaries. In 2026, it applies above $109,000 (individual) or $218,000 (joint) based on your 2024 Modified Adjusted Gross Income. It is a cliff system, $1 over a threshold triggers the full surcharge for that tier. If your income dropped due to retirement or another qualifying life event, you can appeal using Form SSA-44. |
| Q: What does Medicare not cover that I should budget for? |
| Original Medicare does not cover routine dental, vision, hearing aids, or long-term custodial care. It also has no annual cap on Part B out-of-pocket costs, you owe 20% of all approved outpatient services with no limit, unless you carry a Medigap supplement. These gaps are core to understanding the true cost of healthcare in retirement. |
| Q: Is Medicare Advantage or Original Medicare with Medigap better? |
| It depends on your health, providers, and how you weigh cost predictability against flexibility. Medicare Advantage typically offers lower premiums but network restrictions and prior authorization requirements. Original Medicare with a Medigap supplement generally offers broader provider access and more predictable out-of-pocket costs at higher monthly premiums. The right answer for a healthy 65-year-old often looks different from the right answer for someone managing multiple chronic conditions. |
| Q: Will Medicare costs keep going up? |
| Based on historical trends and CMS projections, yes. Healthcare inflation has consistently outpaced general inflation. This is one of the strongest reasons to build a dedicated healthcare cost reserve into your retirement income plan, rather than assuming Social Security COLA will cover your actual healthcare spending each year. |
Medicare is not getting cheaper. The 10% Part B premium jump in 2026 is not a one-time event, it is the continuation of a pattern that has run for over a decade. The families who navigate it best are the ones who plan for it deliberately, not the ones who assume their COLA will cover it.
If you are on Medicare Advantage and have any doubts about your current plan, this week is your window. After March 31, that window closes for seven months.
And if you are approaching Medicare eligibility in the next year or two, the decisions you make now about coverage path, income management to avoid IRMAA, and coordination with your retirement income strategy will have a compounding impact on your finances for decades.
The families who navigate healthcare in retirement successfully all share one thing: they treated it as a strategy, not a line item. That work starts before you turn 65.
| Ready to Build Healthcare Into Your Retirement Plan? Book a free 15-minute review with John. He helps people across the country account for Medicare gaps, IRMAA exposure, and long-term care as part of a complete income strategy.→ Schedule Your Free Review → jdavenportassociates.com/contact-us |
| References & Sources Medicare Part B & A Premiums 2026 — CMS official announcement, Nov 14, 2025: cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles IRMAA 2026 Brackets — Kiplinger, March 2026: kiplinger.com/retirement/medicare/medicare-premiums-2026-irmaa-brackets-and-surcharges Medicare Advantage Open Enrollment Period — Medicare Rights Center, March 19, 2026: medicarerights.org Lifetime Healthcare Cost Estimate ($955,411 couple) — Health View Services, via The Daily Upside, March 2026 Fidelity 2026 State of Retirement Planning Study (healthcare costs) — newsroom.fidelity.com, March 19, 2026 Nursing home cost — Senior Living data, cited in 24/7 Wall St., March 2026 Part D costs 2026 — CMS / Federal Register, November 2025 |
| About the Author — John F. Davenport, Esq. John F. Davenport holds a law degree from Pace University, an MBA in finance from Fordham University and undergraduate degree from the University of Notre Dame. He is a licensed attorney in New York and Connecticut, and holds FINRA Series 6, 7, 63, and 65 licenses. He founded Davenport & Associates in 1997 and has spent more than 30 years helping CT and NY locally and families across the country build retirement income plans and estate strategies that work together, not against each other. Davenport & Associates is located at 800 Connecticut Avenue, Suite E401, Norwalk, CT 06854. Phone: (203) 853-6300 | jdavenportassociates.com IMPORTANT DISCLAIMER: Educational only—not investment/tax/legal advice. No strategy guarantees results—vary by rates, markets, laws, personal circumstances. Consult advisors. |