Most people on Original Medicare pay the standard Part B premium of $202.90 a month in 2026, plus a $283 annual Part B deductible. Part A is premium-free for most people. Medicare Advantage and Part D costs depend on the plan you choose. Below is what each part costs, who pays more, and what can bring your bill down.
TL;DR
- The standard Part B premium is $202.90 per month in 2026, up $17.90 from 2025. The Part B deductible is $283.
- Part A is premium-free for most people. The inpatient deductible is $1,736 per benefit period.
- Part D drug spending is capped at $2,100 out of pocket for covered drugs. No drug plan may have a deductible above $615.
- Higher earners pay an income-related surcharge (IRMAA) on Part B. Medicare Advantage premiums and out-of-pocket limits vary by plan.
Table of Contents
- What Original Medicare costs in 2026 at a glance
- Part B: the premium and deductible most people ask about
- Part A: hospital costs
- Do you pay more? Income-related premiums (IRMAA)
- Medicare Advantage costs in 2026
- Part D drug costs in 2026
- Medigap: filling the 20% gap
- Perspective: how we look at Medicare costs
- Ways to lower your Medicare costs
- Get help comparing your options
- FAQ
- Sources
What Original Medicare costs in 2026 at a glance
The table pulls together the main federal figures for 2026. Medicare Advantage, Part D and Medigap are priced by private plans, so they appear later as ranges and caps rather than a single number.
| Cost | 2026 amount |
|---|---|
| Part A premium (most people) | $0 |
| Part A deductible (per benefit period) | $1,736 |
| Part B standard premium | $202.90 per month |
| Part B annual deductible | $283 |
| Part B coinsurance after the deductible | Usually 20% of the Medicare-approved amount |
| Part D out-of-pocket cap (covered drugs) | $2,100 |
| Maximum Part D plan deductible | $615 |
Sources for the table are the CMS 2026 fact sheet, Medicare.gov's cost page and Medicare.gov's drug coverage cost page.
Part B: the premium and deductible most people ask about
The standard monthly Part B premium is $202.90 in 2026. CMS reports that this is $17.90 higher than the $185.00 charged in 2025, and that the annual Part B deductible rose $26 to $283.
Over a full year, the standard premium comes to $2,434.80. The increase alone adds $214.80 a year compared with 2025.
Is Part B free once you turn 65?
No. Part A is free for most people, but Part B is not. Medicare.gov states that most people pay the standard premium, and that the amount may be higher depending on income. If you also have Medicaid, it may pay the standard premium for you if you qualify.
If you are still working with employer coverage when you turn 65, your situation is different. Whether you need Part B right away depends on the size of the employer and your plan. This is one of the most common places people either overpay or face a late penalty. Our guide to Medicare special enrollment periods explains the timing.
What you pay after the deductible
Once you meet the $283 deductible, you usually pay 20% of the Medicare-approved amount for covered services, provided the provider accepts assignment. Medicare.gov notes that some preventive and laboratory services have $0 cost sharing, and that outpatient hospital services can carry an additional facility copayment.
Here is an illustration, not a quote. Say you have not yet met your deductible and a covered outpatient service has a Medicare-approved amount of $1,000:
- You pay the first $283 as your deductible.
- The remaining $717 is subject to 20% coinsurance, which is $143.40.
- Your share is $426.40, and Medicare pays the rest.
Original Medicare has no annual cap on that 20%. That gap is the main reason people pair Original Medicare with a Medigap plan or choose a Medicare Advantage plan, both covered below.
Part A: hospital costs
About 99% of beneficiaries have premium-free Part A, because they or a spouse have generally worked at least 40 quarters in Medicare-covered employment. People who must buy Part A pay $311 a month with at least 30 quarters of coverage, or $565 a month with fewer than 30.
The bigger Part A number for most people is the deductible. These are the 2026 amounts from the same CMS fact sheet:
- Inpatient deductible: $1,736 for each benefit period.
- Hospital days 61 to 90: $434 per day in coinsurance.
- Lifetime reserve days: $868 per day.
- Skilled nursing facility days 21 to 100: $217 per day.
Medicare.gov adds that after the deductible, hospital cost sharing is $0 for days 1 to 60, and you pay all costs after day 150. A benefit period is not a calendar year, so you can owe the deductible more than once in a year if you are hospitalized, recover, and are admitted again after the period ends.
Do you pay more? Income-related premiums (IRMAA)
Part B has a sliding scale. CMS lists six possible total monthly premiums for 2026, depending on modified adjusted gross income and tax filing status: $202.90, $284.10, $405.80, $527.50, $649.20 and $689.90.
The Social Security Administration explains that the surcharge generally uses your most recent IRS tax return available, normally income from two years earlier. The higher premiums start above $109,000 for individuals and above $218,000 for joint filers.
Two practical points:
- A one-time event such as selling a house or taking a large retirement withdrawal can push you into a higher bracket for a year.
- If your income has dropped since the tax year used, for example because you retired, you can ask Social Security to reconsider. Retirement is one of the life events that can qualify.
We break down each bracket and the ways to lower the surcharge in our guide to IRMAA brackets for 2026.
Medicare Advantage costs in 2026
Medicare Advantage (Part C) is priced plan by plan. Medicare.gov states that premiums, deductibles, copayments and coinsurance vary, and that you must keep Part B and keep paying its premium to stay in your plan. Many plans charge a $0 plan premium, but you still pay the Part B premium.
The most useful number on a Medicare Advantage plan is its out-of-pocket maximum. NCOA reports that the 2026 in-network maximum is $9,250, although individual plans may set lower limits. After you hit the limit, the plan pays 100% of covered services for the rest of the calendar year. For plans that allow out-of-network care, WTOP reports a combined in- and out-of-network maximum of $13,900.
When you compare plans, look past the premium. Check:
- The plan's maximum out-of-pocket limit, not just the federal ceiling.
- Copays for primary care, specialists, emergency room visits and hospital stays.
- Whether your doctors and hospitals are in network.
- Whether your prescriptions are on the plan's formulary, and at what tier.
Our Michigan Medicare guide for Advantage, Part D and Medigap covers how these choices play out for Michigan residents.
Part D drug costs in 2026
Part D premiums and deductibles vary by plan. Medicare.gov states that no Medicare drug plan may have a deductible above $615 in 2026. Out-of-pocket spending on covered drugs is capped at $2,100, per Medicare.gov's cost page.
The 2026 national base beneficiary premium is $38.99, according to Medicare.gov's 2026 cost publication. It is a standardized figure used in the premium and late-penalty framework. Your actual premium depends on the plan.
That base premium matters if you delay Part D. The late enrollment penalty is built from that figure, which is why enrolling on time at 65 saves money for as long as you have drug coverage. Our guide to avoiding Part D penalties at 65 walks through it.
If you take a GLP-1 medication, the monthly bill depends on how it is covered and which program you use. This breakdown of GLP-1 program costs explains the monthly numbers.
Ways to spread or reduce drug costs
- Extra Help: Medicare.gov says this program pays some or all Part D premiums, deductibles, coinsurance and other drug costs for people with limited income and resources. If you do not qualify automatically, you can apply.
- State pharmaceutical assistance: Some states offer help with Part D premiums and cost sharing. Medicare.gov notes that qualifying state assistance may count toward the out-of-pocket limit.
- Medicare Prescription Payment Plan: Per the same page, it lets Part D and Medicare Advantage drug plan enrollees spread covered out-of-pocket drug costs across monthly bills instead of paying at the pharmacy counter.
Medigap: filling the 20% gap
Medicare Supplement (Medigap) plans are sold by private insurers and help pay costs Original Medicare leaves, such as the Part A deductible and Part B coinsurance. Premiums depend on the plan letter, your age, where you live and the insurer's rating method, so there is no single federal price. A Medigap plan comes on top of your Part B premium.
For Michigan residents, our comparison of Medicare Supplement Plan G rates in Michigan shows how pricing varies.
Perspective: how we look at Medicare costs
Most people ask us, "What is the premium?" The better question is, "What will I pay in a bad year, and what will I pay in a good one?" The Part B premium is the same for nearly everyone. The real differences show up in the 20% with no cap, the drug formulary, and whether your doctors are in network.
We work with advisors licensed for multiple carriers, so we can compare Medicare Advantage, Medigap and Part D options side by side instead of pushing one product. Our help costs you nothing, and we stay with you after enrollment. Your health, drugs and income change, and your coverage should keep up with them.
Our advice: review your plan every fall, especially if you started taking a new medication, moved, or retired. A plan that was right two years ago may no longer be.
Brian
Ways to lower your Medicare costs
- Check for Medicare Savings Programs. Depending on your income and resources, state programs may help pay Part B premiums. Medicaid may also pay the standard premium for people who qualify. See our overview of Medicare Savings Programs in Michigan.
- Apply for Extra Help if your income and resources are limited. It can cut Part D premiums and drug costs.
- Appeal an income-related surcharge after a life-changing event such as retirement, if your income has fallen.
- Compare plans every open enrollment. Premiums, formularies and networks change each year. Our Medicare open enrollment checklist lists six checks to run.
- Enroll on time. Late Part D enrollment adds a penalty, and our guide to Medicare changes in 2026 shows what to check now.
- Use in-network providers and pharmacies to avoid higher cost sharing.
Get help comparing your options
Platinum Benefit Advisors helps people turning 65 and people already on Medicare compare Medicare Advantage, Medicare Supplement and Part D plans. Our guidance is offered at no cost to you. Visit our Medicare insurance page or our page for those turning 65 to see how we can help.
Have questions? We have answers! Contact us to schedule a no-obligation meeting.
- Contact: https://www.pbabiz.com/contact
- Call or text: 616-221-4616
- Meet on your terms: In Person • Phone • Virtual
FAQ
How much is Medicare Part B in 2026?
The standard Part B premium is $202.90 per month, and the annual deductible is $283, according to CMS. Higher-income beneficiaries pay more, up to $689.90 per month. After the deductible, you usually pay 20% of the Medicare-approved amount.
Why did Medicare costs go up in 2026?
The Part B premium rose $17.90 and the deductible rose $26 from 2025, per CMS. Premiums and deductibles are reset each year. Your own bill can also change if your income bracket, plan or drug needs change, so a yearly plan review is worth the time.
Is there a cap on what I pay out of pocket?
It depends on your coverage. Original Medicare has no annual cap on the 20% Part B coinsurance. Part D covered-drug spending is capped at $2,100. Medicare Advantage plans have an in-network maximum of up to $9,250 in 2026, and individual plans may set lower limits.
Can I get help paying Medicare premiums?
Possibly. Medicaid may pay your standard Part B premium if you qualify, and Extra Help can cover part or all of your Part D costs. Your state may also offer drug assistance. An advisor can help you check which programs fit your income.
Sources
- 2026 Medicare Parts A & B Premiums and Deductibles, CMS
- Costs, Medicare.gov
- How much does Medicare drug coverage cost?, Medicare.gov
- 2026 Medicare Costs, Medicare.gov
- Medicare Premiums, Social Security Administration
- Help with drug costs, Medicare.gov
- Medicare Advantage plans, NCOA
- Medicare vs. Medicare Advantage, WTOP
- GLP-1 program costs