The Centers for Medicare & Medicaid Services (CMS) has officially released the 2026 premiums, deductibles, and coinsurance amounts for Medicare Part A and Part B. As reported by FEDweek, beneficiaries will face a significant jump in costs next year, with the standard Part B premium rising by nearly 10%. For retirees living on fixed incomes, this increase will consume a substantial portion of the upcoming Social Security Cost-of-Living Adjustment (COLA), making precise financial planning more essential than ever.
The Numbers: What You Will Pay in 2026
The new figures represent a notable increase over 2025, driven by projected price changes and higher utilization of healthcare services. Here is the definitive data for your 2026 budget:
- Part B Standard Premium: The monthly premium will rise to $202.90, an increase of $17.90 from the 2025 rate of $185.00. This 9.7% hike is the largest single-year increase since 2022.
- Part B Deductible: The annual deductible for all Part B beneficiaries will increase to $283, up $26 from the previous year.
- Part A Inpatient Deductible: For hospital admissions, the deductible will jump to $1,736, an increase of $60.
- Part A Coinsurance: For hospital stays lasting 61-90 days, the daily coinsurance will rise to $434. For lifetime reserve days, it increases to $868 per day.
The “Hidden” Tax: 2026 IRMAA Brackets
For higher-income retirees, the standard premium is only the starting point. The Income-Related Monthly Adjustment Amount (IRMAA) surcharges will also apply if your modified adjusted gross income (MAGI) from two years prior (2024 tax return) exceeds certain thresholds.
- The Threshold: Surcharges begin for individuals with a MAGI over $109,000 and married couples filing jointly over $218,000.
- The Impact: Beneficiaries in these higher brackets will pay total monthly Part B premiums ranging from $284.10 to as high as $689.90 per person.
- Part D Surcharges: High earners will also pay an extra $14.50 to $91.00 per month on top of their drug plan premium.
This data highlights a critical financial squeeze: while the 2026 Social Security COLA is set at 2.8% (an average increase of about $56/month), the $17.90 hike in the Part B premium will immediately absorb roughly 32% of that raise for the average retiree.
Strategic Planning is Your Best Defense
Rising Medicare costs are a mandatory expense for most retirees, but they do not have to derail your financial security. For federal retirees specifically, the interplay between Medicare, FEHB, and these new costs requires a strategic review.
Internal Benefit Advisors specializes in helping you navigate this complex landscape. We provide the expert guidance needed to ensure your healthcare coverage remains both comprehensive and cost-effective.
Here is how we help you manage these 2026 changes:
- FEHB & Medicare Integration: We analyze whether joining Medicare Part B is cost-effective for you, comparing the new $202.90 premium against the potential savings in your specific FEHB plan (such as waived deductibles or copays).
- IRMAA Appeals: If you have experienced a life-changing event (such as retirement, divorce, or loss of income) since 2024, we can guide you through the process of appealing your IRMAA surcharge to potentially save thousands in premiums.
- Holistic Retirement Review: We look at your total retirement picture—pension, Social Security, and investments—to ensure rising healthcare costs don’t erode your long-term purchasing power.
The costs of healthcare are rising, but your plan can be stronger.
Take the definitive step to secure your healthcare budget. Contact Internal Benefit Advisors today for a comprehensive Medicare and benefits review.
References
- FEDweek. “Medicare Announces Increases in Premiums, Deductibles for 2026.”
- Centers for Medicare & Medicaid Services (CMS). (2025). Fact Sheet: 2026 Medicare Parts A & B Premiums and Deductibles.
- Social Security Administration. (2025). 2026 Cost-of-Living Adjustment (COLA) Information.
- Internal Benefit Advisors. Retrieved from https://internalbenefitadvisors.com
