What Does Medicare Cost in 2026?
A complete breakdown of every Medicare premium, deductible, coinsurance, and out-of-pocket cost — plus how to minimize what you pay.
- Part B Premium
- $202.90/mo
- Part B Deductible
- $283/yr
- Hospital Deductible
- $1,736
- Part D OOP Cap
- $2,000
2026 Medicare Cost Overview
Medicare isn't free — even with premium-free Part A, most beneficiaries pay several hundred dollars per month when you factor in Part B premiums, supplemental coverage, and prescription drug plans. Understanding these costs upfront helps you budget effectively and choose the right coverage.
Part A Costs (Hospital Insurance)
Part A covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health care. Most people don't pay a premium for Part A, but there are significant deductibles and coinsurance.
| Cost Item | 2026 Amount | Notes |
|---|---|---|
| Part A Premium | $0 | For most people (40+ quarters of work) |
| Part A Premium (no work history) | $565/mo | If you don't qualify for premium-free Part A |
| Hospital Deductible | $1,736 | Per benefit period (not per year) |
| Days 1–60 Coinsurance | $0/day | After meeting the deductible |
| Days 61–90 Coinsurance | $434/day | For each day of inpatient hospital stay |
| Lifetime Reserve Days (91+) | $868/day | 60 lifetime reserve days total |
| Skilled Nursing Facility (Days 21–100) | $217/day | After first 20 days covered in full |
Part B Costs (Medical Insurance)
Part B covers doctor visits, outpatient care, preventive services, durable medical equipment, and more. Everyone pays a monthly premium, and there's a 20% coinsurance with no annual cap.
| Cost Item | 2026 Amount | Notes |
|---|---|---|
| Standard Monthly Premium | $202.90/mo | Most beneficiaries pay this amount |
| Annual Deductible | $283 | Must be met before Medicare pays |
| Coinsurance | 20% | You pay 20% of Medicare-approved amount after deductible |
| Outpatient Surgery | 20% | After deductible, in Medicare-approved facilities |
| Doctor Visits | 20% | After deductible for office and specialist visits |
| Durable Medical Equipment | 20% | Wheelchairs, walkers, hospital beds, etc. |
Part D Costs (Prescription Drugs)
Part D covers prescription medications. Plans are offered by private insurers and costs vary by plan. A major improvement starting in 2025: the annual out-of-pocket maximum cap of $2,000.
| Cost Item | 2026 Amount | Notes |
|---|---|---|
| Average Monthly Premium | ~$34.50/mo | Varies by plan and location |
| Annual Deductible | Up to $615 | Some plans have $0 deductible |
| Initial Coverage Phase | 25% coinsurance | Until drug costs reach $5,030 |
| Coverage Gap (Donut Hole) | $0 for generics | Eliminated for brand-name drugs in 2025; $2,000 OOP cap in 2026 |
| Out-of-Pocket Cap | $2,000 | New for 2025 — maximum you pay annually for Part D drugs |
Medigap (Medicare Supplement) Costs
Medigap plans help cover the "gaps" in Original Medicare — deductibles, coinsurance, and copays. Plans are standardized by letter (A, B, C, D, F, G, K, L, M, N) so benefits are identical across insurers.
Plan G
Most Popular$100–$300/mo
Everything except Part B deductible ($283/yr)
Plan N
Budget-Friendly$75–$225/mo
Most costs, but has small copays ($20 office / $50 ER)
Medigap premiums vary by age, location, gender, and tobacco use. Rates shown are typical ranges. The best time to enroll is during your 6-month Medigap Open Enrollment Period (starts when Part B begins).
Medicare Advantage (Part C) Costs
Medicare Advantage plans are offered by private insurers as an alternative to Original Medicare. Many have $0 premiums (beyond Part B) and include drug coverage and extra benefits, but use provider networks.
- Avg. Monthly Premium
- $0–$50
- PCP Copay
- $0–$20
- Specialist Copay
- $20–$50
- Max OOP (In-Network)
- $9,250
Total Monthly Cost Scenarios
Here's what you can expect to pay each month under the three most common Medicare coverage paths:
Original Medicare ++ Medigap Plan G ++ Part D
- Monthly Cost
- $350–$550/mo
- Annual Cost
- $4,200–$6,600/yr
- Max Out-of-Pocket
- Predictable — very low out-of-pocket after premiums
- Part B Premium: $202.90/mo
- Medigap Plan G: $100–$300/mo (varies by age/state)
- Part D Premium: ~$35/mo
- Part B Deductible: $283/yr (only out-of-pocket cost with Plan G)
Medicare Advantage (Part C)
- Monthly Cost
- $0–$150/mo
- Annual Cost
- $0–$1,800/yr (premiums only)
- Max Out-of-Pocket
- Up to $9,250 in-network MOOP in 2026
- Part B Premium: $202.90/mo (still required)
- Plan Premium: Many plans are $0/mo
- Copays per visit: $10–$50 depending on service
- Maximum Out-of-Pocket: Up to $9,250/yr in-network
Original Medicare Only (No Supplement)
- Monthly Cost
- $202.90/mo
- Annual Cost
- $2,220/yr (premiums only)
- Max Out-of-Pocket
- Unlimited — no cap on out-of-pocket costs
- Part B Premium: $202.90/mo
- 20% coinsurance on all Part B services
- Hospital deductible: $1,736 per benefit period
- No maximum out-of-pocket limit
IRMAA Surcharges (Higher-Income Beneficiaries)
If your modified adjusted gross income (MAGI) exceeds certain thresholds, you'll pay higher Part B and Part D premiums. This is called IRMAA — the Income-Related Monthly Adjustment Amount. It's based on your tax return from 2 years prior.
| Income (Single / Joint) | Part B Premium | Part D Surcharge |
|---|---|---|
| $109,000 or less (single) / $218,000 or less (joint) | $202.90 | $0.00 |
| > $109,000 and < $137,000 / > $218,000 and < $274,000 | $284.10 | $14.50 |
| > $137,000 and < $171,000 / > $274,000 and < $342,000 | $405.80 | $37.50 |
| > $171,000 and < $205,000 / > $342,000 and < $410,000 | $527.50 | $60.40 |
| > $205,000 and < $500,000 / > $410,000 and < $750,000 | $649.20 | $83.30 |
| > $500,000 / > $750,000 | $689.90 | $91.00 |
Ways to Save on Medicare Costs
Medicare Savings Programs (MSPs)
State programs that help pay Part A and/or Part B premiums, deductibles, and coinsurance for low-income beneficiaries.
Extra Help // Low-Income Subsidy
Federal program that helps pay Part D premiums, deductibles, and copays. Available to those with limited income and resources.
Compare Plans Annually
Plans change every year. Reviewing your options during the Annual Enrollment Period (Oct 15 – Dec 7) can save you hundreds.
Use Preventive Services
Medicare covers many preventive services at no cost — annual wellness visits, screenings, and vaccinations. Using them can catch issues early and reduce long-term costs.
Choose Generic Medications
Ask your doctor about generic alternatives. They're typically much cheaper and work the same as brand-name drugs.
Appeal IRMAA if Income Changed
If your income dropped due to retirement, divorce, or other life events, you can request an IRMAA reconsideration using SSA Form SSA-44.
Frequently Asked Questions
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