Many retirees are grateful that Medicare exists. Without it, they'd no doubt have to scramble to find affordable health coverage.

But the costs associated with Medicare can change from one year to the next. And 2026 is proving to be no exception. Here are five big Medicare changes to know about -- and budget for -- in the new year.

Image source: Getty Images.

1. The standard monthly Part B premium is rising

It's a big misconception that all Medicare enrollees are entitled to free health coverage. Although Part A, which covers hospital care, typically does not charge a premium, enrollees have to pay a premium for Part B.

Meanwhile, the standard monthly premium for Medicare Part B will be $202.90 in 2026, an increase of $17.90 from $185 in 2025. Seniors who are enrolled in Medicare and Social Security will have their Part B premiums deducted from their monthly benefits. However, that $17.90 increase will heavily erode Social Security's upcoming cost-of-living adjustment (COLA).

In 2026, Social Security recipients are entitled to a 2.8% COLA. That's expected to increase the average retirement benefit by $56. However, when we account for the aforementioned increase in Medicare Part B, it leaves many seniors with a lot less of a raise.

It's also worth noting that $202.90 is the standard Medicare Part B premium for 2026. But higher earners who are subject to income-related monthly adjustment amounts, or IRMAAs, will pay more.

In 2026, IRMAAs will apply to single tax-filers with incomes above $109,000 or joint filers with incomes above $218,000. And while they only affect about 8% of Medicare Part B enrollees, they're an important thing to know about.

2. The annual deductible for Medicare Part B is rising

If you're familiar with typical health insurance, you may be used to having to pay a deductible before your insurer picks up the cost of your care. There's an annual deductible that applies to Medicare Part B, and it's rising to $283 in 2026.

This year, the Medicare Part B deductible is $257. So enrollees will have to fork over an additional $26 in 2026.

3. The inpatient hospital deductible for Part A is increasing

Although most Medicare enrollees do not pay a premium for Part A coverage, there are costs associated with a hospital stay that can really add up. In 2026, the Part A inpatient hospital deductible is rising to $1,736, up from $1,676 in 2025.

4. The daily hospital coinsurance rate is increasing

As mentioned, if you're admitted to the hospital, you'll pay $1,736 as a Medicare Part A enrollee. That deductible, however, only covers your first 60 days in the hospital.

Once you go beyond 60 days, you're charged a daily coinsurance rate for days 61 through 90. That daily rate is increasing from $419 in 2025 to $434 in 2026.

5. The coinsurance rate for lifetime reserve days is rising

Medicare will pay for up to 90 days of a hospital stay at a time. If you end up being admitted beyond that point, you'll have to dip into your lifetime reserve days. And the cost there is increasing in 2026, too.

This year, the daily hospital coinsurance rate for lifetime reserve days is $838 per day. In 2026, it's rising to $868.

Prepare for these changes now

Clearly, there are a lot of costs you might incur as a Medicare enrollee -- and many of them are rising. So it's important to budget carefully to account for these higher costs.

Remember, in addition to these costs, you may be looking at higher premiums or deductibles for your Medicare Advantage or Part D plan. So the sooner you factor those into your budget, the better.