top of page
Stellar Health Benefits logo, homepage

2026 Medicare Premium Increases: What You Need to Know And How Medicare Advantage Could Help

Medicare costs are rising next year, but a Medicare Advantage plan could help protect your budget. Learn what’s changing and how to prepare.

August 2, 2025

Senior couple sitting at a table reviewing medical bills and using a calculator to plan for rising Medicare costs in 2026

As we approach 2026, Medicare beneficiaries are bracing for higher healthcare costs. Experts project a significant jump in Medicare Part B premiums, along with increases in deductibles and income-related surcharges. These rising costs can impact fixed-income seniors and retirees, but fortunately, a well-chosen Medicare Advantage (Part C) plan may provide important cost protections.


What Are the Projected Costs for 2026?


According to estimates, the standard Medicare Part B premium is projected to rise to $206.50 per month, up from $185.00 in 2025—a notable 11.5% increase (Rowland, 2024). The Part B annual deductible, which was $240 in 2024, is also expected to rise modestly, though final figures have not yet been confirmed. Similarly, the Part A hospital deductible is set to increase slightly in response to inflationary medical spending.


Additionally, high-income beneficiaries will face steeper IRMAA (Income-Related Monthly Adjustment Amounts) surcharges. Part B IRMAA brackets are estimated to rise by an average of 1.04%, and Part D IRMAA surcharges could jump over 6% in 2026 (Pavese, 2024).


Why Are Medicare Costs Increasing?


Several factors are contributing to the higher costs:


  • Growth in healthcare utilization and medical inflation

  • Inflation adjustments to Social Security and Medicare income thresholds

  • Projected federal spending increases on Medicare programs



These trends highlight the growing importance of reviewing your coverage annually to avoid being caught off guard by escalating expenses.


Can a Medicare Advantage Plan Help?


Yes! Medicare Advantage plans, also known as Part C, offer private insurance alternatives to Original Medicare—and many of them help protect against rising costs.


Most Medicare Advantage plans offer:


  • $0 premiums or low-cost affordable premiums

  • Lower out-of-pocket expenses for hospital stays and medical services

  • Built-in prescription drug coverage (Part D)

  • Extra benefits like dental, vision, hearing, fitness programs, and transportation

  • Annual out-of-pocket maximums, which Original Medicare does not include


With inflation driving up Medicare costs, Medicare Advantage plans can offer predictability and peace of mind for many retirees.


Estimated Medicare Costs for 2026

Coverage Component

2026 Estimate

Part B Premium (Standard)

~$206.50/month

Part B Deductible

~$260 (projected)

Part A Hospital Deductible

~$1,700 (projected)

Part D IRMAA

+6.14% on average



Final Thoughts


Rising Medicare costs don’t have to overwhelm you. With the help of a knowledgeable health insurance advisor, you can explore Medicare Advantage options that may reduce your out-of-pocket risk. At Stellar Health Benefits LLC, we’re here to help you navigate these changes and find the coverage that fits both your health needs and your budget. Contact us today for a free Medicare Review.




Works Cited




bottom of page