There's a reason many older workers push themselves to remain employed until they turn 65. Age 65 is when Medicare eligibility generally begins. And without Medicare or employer-subsidized insurance, the cost of health coverage can be astronomical.
That said, Medicare is by no means free. While Part A, which covers hospital stays, typically does not require enrollees to pay a premium, Medicare Part B, which covers outpatient care and physician services, costs money.
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In 2026, the cost of Medicare Part B is rising substantially. Here's what retirees need to know.
Expect to shell out more for Part B coverage
Each year, the costs associated with Medicare Part B have the potential to rise. In 2026, the standard monthly Part B premium is increasing from $185 to $202.90, which means the average senior will pay $17.90 more.
But that's just the standard monthly premium for Medicare Part B. Higher earners are subject to income-related monthly adjustment amounts, or IRMAAs, that can drive Part B costs up even more.
In 2026, single tax-filers who have an income above $109,000 will be subject to Medicare IRMAAs. So will married couples filing jointly with incomes over $218,000.
And IRMAAs don't only apply to Medicare Part B premiums. They also apply to the premiums charged by Part D drug plans. Unlike Part B, there's no standard monthly Part D premium, though, as the cost there depends on retirees' plan of choice.
Meanwhile, not only is the standard Medicare Part B premium rising in 2026, but the Part B deductible is increasing as well. It's going from $257 to $283 -- an increase of $26.
Medicare Part B increases will eat away at next year's Social Security raise
Social Security benefits are eligible for a cost-of-living adjustment, or COLA, each year. And that's a good thing, because without those COLAs, many recipients wouldn't have a way to keep up with inflation.
In 2026, Social Security benefits are getting a 2.8% COLA. That's expected to take the average $2,015 monthly benefit up to $2,071.
However, seniors who are enrolled in Social Security and Medicare at the same time pay their Part B premiums out of their monthly benefits directly. Now that the cost of those premiums is rising, many Social Security recipients are apt to find that they don't get as much of a raise as they may have initially expected in 2026.
The good news is that next year's Social Security COLA is generous enough to avoid wiping out that COLA completely for the average recipient. But still, it's a tough blow for seniors who have been struggling to make ends meet.
It's not just Medicare Part B that's increasing
Because there's no premium for Medicare Part A, people tend to focus on Part B cost increases. But the cost of Part A is rising, too.
In 2026, you'll pay more for each hospital stay. You'll also pay more if you end up needing a skilled nursing facility.
And of course your specific Medicare plan premiums may be increasing. It's important to check your Medicare Advantage or Part D plan's notice of change to see if you'll have to shell out more money for coverage in 2026.
The time to prepare is now
No matter what your financial situation looks like in retirement, it's important to know what to expect in 2026 as far as your Medicare costs are concerned. In fact, now's a good time to set up a budget for 2026 so you can manage your money carefully and ensure that you're able to stretch your income to cover all of your needs.
