What will the Medicare premium for part B be in 2026?

Medicare Part A (Hospital Insurance) is free of a monthly premium for most seniors who worked and paid Medicare taxes for at least 10 years (40 quarters).

Medicare is not entirely free, and no single part covers everything without other potential out-of-pocket costs. Here is how the costs break down by part:

Premium-Free vs. Paid Parts of Medicare

• Medicare Part A (Hospital Insurance): $0 monthly premium for about 99% of seniors who have enough work history. However, it still has a deductible ($1,736 per benefit period in 2026) and coinsurance for long hospital or skilled nursing stays. If you lack the required work credits, you can buy Part A for a monthly fee.
• Medicare Part B (Medical Insurance): Not free. Most people pay a standard monthly premium ($202.90 in 2026), plus an annual deductible and 20% coinsurance for most doctor services.
• Medicare Part C (Medicare Advantage): Sometimes $0 plan premium. These are private plans, and some feature a $0 additional monthly charge, but you must still pay your standard Part B premium.
• Medicare Part D (Prescription Drug Coverage): Not automatically free, though private plan prices vary.

How to Get Help With Costs

• Medicare Savings Programs (MSPs): If you have a low income, your state may pay for your Part B premiums, deductibles, and co-pays.
• Extra Help Program: Low-income seniors can get assistance with prescription drug costs through the federal Extra Help program, which lowers or eliminates Part D premiums and deductibles.

You are likely paying close to $700 a month because of an income-based surcharge called IRMAA (Income-Related Monthly Adjustment Amount) added to your Social Security Administration Benefits Planner.

Why the Cost is High

• The IRMAA Surcharge: While the standard Medicare Part B monthly premium is $202.90, higher earners must pay an extra surcharge. If your total monthly cost reaches nearly $700, your past income has pushed you into a higher IRMAA bracket.
• Look-Back Period: Medicare determines IRMAA using your Modified Adjusted Gross Income (MAGI) from two years prior. A high-income tax return from two years ago dictates your current monthly bill.
• Combined Parts: This total often includes surcharges for both Part B (outpatient care) and Part D (prescription drug coverage).
• Automatic Deduction: This amount is typically taken directly out of your monthly Social Security check or billed quarterly if you are not yet collecting benefits.

What You Can Do

• Check for Life-Changing Events: If you experienced a major income drop due to a life-changing event (such as marriage, divorce, or work reduction), you can appeal to have your surcharge lowered.
• Review Details: You can check specific rules and thresholds directly through AARP's Medicare Guide or contact Social Security.

Almost everyone who enrolls in Medicare Part B must pay a monthly premium, as there is no automatic "free" Part B option based on work history. However, you do not have to pay these costs out of pocket if you qualify for specific financial assistance programs or insurance plan benefits.

As noted by CBS News, most seniors cannot completely avoid these premiums unless they qualify for specific relief programs.

Low-Income Assistance Programs

• Medicaid: If your income and assets are very low, your state’s Medicaid program may pay your monthly Part B premium for you.
• Medicare Savings Programs (MSPs): State programs like the Qualified Medicare Beneficiary (QMB) program help pay Part B premiums, and sometimes deductibles and co-pays, for qualifying low-income individuals.

Insurance and Employer Benefits

• Medicare Advantage "Giveback" Plans: Some private Medicare Advantage plans offer a Part B premium reduction benefit (known as a "giveback") that covers part or all of your monthly Part B premium.
• Employer or Union Coverage: If you or your spouse are still working, or have retiree/union benefits, your employer or union may fully reimburse you for your Part B premium cost.

Neither option is universally "better"; Original Medicare (Parts A and B) and Medicare Advantage (Part C) serve different needs depending on your budget, health, and preference for doctors. You can review your official choices on the Medicare Coverage Options Page.

Original Medicare (Parts A & B)

• How it works: Run directly by the federal government. Covers hospital care (Part A) and doctor visits (Part B).
• Doctor choice: Go to any doctor or hospital in the U.S. that accepts Medicare without needing referrals.
• Costs: No yearly limit on out-of-pocket costs unless you buy a separate Medigap (supplement) policy. You also need separate Part D for prescription drugs.
• Best for: People who travel often within the U.S., want absolute freedom in choosing specialists, or prefer predictable coinsurance paired with a Medigap plan.

Medicare Advantage (Part C)

• How it works: Offered by private insurance companies approved by Medicare. Combines Part A, Part B, and usually Part D (prescription drugs) into one plan.
• Extra benefits: Often includes routine dental, vision, hearing, and gym memberships.
• Costs: Features a mandatory yearly out-of-pocket maximum limit, but you must use specific provider networks (HMO or PPO) and may need prior approval for treatments.
• Best for: People who want lower upfront or bundled monthly costs, desire extra perks like dental/vision, and stay within a local hospital or doctor network.

Yes, you can deduct your Medicare Part B premiums on your federal income taxes, provided you meet certain IRS rules.

How the Deduction Works

• Itemized Deductions (Standard Method): If you are retired or not self-employed, you can deduct your Part B premiums as a medical expense, but you must itemize your deductions on Schedule A of Form 1040 instead of taking the standard deduction.
• The 7.5% AGI Threshold: Your total medical expenses (including Part B premiums, other Medicare parts, prescriptions, copays, and doctor visits) must exceed 7.5% of your Adjusted Gross Income (AGI). You can only deduct the portion that goes above that 7.5% limit.
• Self-Employed Deduction: If you are self-employed and net a profit, you may qualify for an above-the-line deduction for health insurance premiums (including Medicare Part B) without having to itemize or meet the 7.5% threshold, as long as you are not eligible for an employer-subsidized health plan through a spouse.

Key Details to Remember

• Automatic Social Security Deductions: Even if your Part B premiums are automatically deducted from your Social Security checks, they are still eligible to be counted as medical expenses. You can find these totals on your Form SSA-1099.
• IRMAA Surcharges: If you pay higher Part B premiums due to a high-income surcharge (known as IRMAA), that extra amount is also fully deductible as a medical expense.
• Non-Deductible Items: Late-enrollment penalties for Part B generally do not count as deductible medical expenses.