Medicare Part B Premium to Top $200 Following Nearly 10% Hike
- Nov 21
- 2 min read
Millions of older adults are bracing for significant increases in their healthcare expenses next year, as the standard Medicare Part B monthly premium is set to jump nearly 10 percent in 2026. This hike, described as the largest increase in four years and the second-largest in the program’s history in dollar terms, will push the Part B premium above $200 for the first time.
According to the Centers for Medicare & Medicaid Services (CMS), the standard monthly premium for Part B—which covers physician and outpatient services—will rise from 185in2025to∗∗202.90** in 2026, an increase of $17.90. Rising prices and increased use of medical services, accelerating health care costs, and higher spending on outpatient hospital care and Medicare Advantage (MA) are cited as the main drivers for these increases. CMS noted that the premium bump would have been about $11 higher without a recent change in payment rules concerning skin substitutes.
Other critical costs are also climbing: the annual Part B deductible will increase more than 10 percent to $283. Additionally, the Part A deductible, paid when a beneficiary is admitted as an inpatient, will rise by about 3.6 percent to $1,736 in 2026.
The nearly 10% Part B premium increase is higher than the overall inflation rate and marks the third consecutive year the Part B premium has grown faster than the Social Security Cost-of-Living Adjustment (COLA). The COLA for 2026 is 2.8 percent, which translates to an average retiree boost of $56 per month.
While this COLA will easily cover the $17.90 premium increase for most beneficiaries, allowing the Social Security Act’s hold-harmless provision not to apply broadly, the large increase will further strain the finances of older Americans. The hold-harmless rule prevents Part B premium increases from reducing some recipients’ monthly benefits below the previous year's level. However, in 2026, only eligible recipients whose monthly Social Security benefit is $639 or less will be protected from the full premium increase. The protection does not cover those new to Medicare, those paying income-related adjustment amounts (IRMAA), or those in a Medicare Savings Program (MSP).
The climbing traditional Medicare costs may incentivize more seniors to switch to MA plans, many of which offer $0 monthly premiums. However, the Medicare Advantage market itself is undergoing significant disruption.
Driven by medical costs outpacing federal reimbursements, the number of MA offerings is tumbling 10 percent to 3,373 plans. Major insurers, including Humana and UnitedHealthcare, are reducing plan options in over 100 counties, affecting more than 2 million people. For the first time, residents in certain counties of Vermont will have no MA plans available. Furthermore, maximum out-of-pocket limits for medical care are rising about 10 percent on average, and fewer plans are offering $0 deductibles or extensive supplemental benefits, such as dental allowances.
Despite the current instability, experts suggest Medicare Advantage remains an attractive market for insurers over the long term and is "not going away any time soon".
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Keywords: Medicare Part B Premium
Medicare Part B Premium
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