Medicare Part B premiums cross $200 for the first time in 2026

The Nearly 10 Percent Hike Starts in January

If you’re on Medicare, your monthly bill is about to get bigger. Starting January 2026, the standard Part B premium jumps to $202.90, up $17.90 from this year.

It’s the first time the premium has broken the $200 mark, and for the roughly 65 million people enrolled, most will see it pulled straight from their Social Security checks.

The increase would have been even steeper if not for a last-minute rule change targeting one of Medicare’s fastest-growing expenses.

Deductible Climbs to $283

Before Medicare Part B covers anything, you have to meet an annual deductible. In 2026, that amount rises to $283, up $26 from $257 in 2025.

This is the amount you pay out of pocket each year before Medicare starts picking up its share of doctor visits, outpatient procedures, and other Part B services.

Once you hit that threshold, Medicare typically covers 80% of approved costs, and you pay the remaining 20%.

Why Premiums Keep Rising

The Centers for Medicare and Medicaid Services points to two main factors: rising healthcare prices and increased use of medical services.

More people are going to the doctor, getting tests, and using outpatient care, and the cost of those services keeps climbing.

CMS sets premiums each year based on projected spending, and 2026’s numbers reflect trends that have been building for years.

The nearly 10% jump is the largest since 2022.

Skin Substitutes Saved You $11

The 2026 premium increase could have been about $11 higher per month.

CMS finalized rules in November 2025 that slash Medicare spending on wound care products called skin substitutes by 90%.

These products, used to treat diabetic foot ulcers and other chronic wounds, had become a major expense.

By reclassifying how Medicare pays for them, CMS estimates it will save $19.6 billion in 2026 alone. That savings is baked into the lower premium.

The $10 Billion Wound Care Problem

Medicare spending on skin substitutes exploded from about $250 million in 2019 to over $10 billion in 2024.

That’s a 40-fold increase while the number of patients only doubled.

Federal investigators flagged widespread fraud, including cases where providers billed millions for wound care on patients who had no evidence of prior treatment.

Some products cost more than $2,000 per square centimeter. The new flat rate of $127. 28 per square centimeter aims to end the pricing games.

2022’s Aduhelm Shock Still Echoes

In 2022, Part B premiums jumped 14.5%, the largest dollar increase in the program’s history.

Much of that spike was tied to a new Alzheimer’s drug called Aduhelm, which had an initial price tag of $56,000 per year.

Medicare set aside reserves in case it had to cover the drug widely.

When coverage was limited to clinical trials and the drugmaker cut the price, spending came in far below projections.

The result was a rare premium decrease in 2023, dropping to $164.90.

Social Security COLA Gets Eaten

Social Security beneficiaries are getting a 2. 8% cost-of-living adjustment in 2026, averaging about $56 per month for retirees.

But the $17.90 Part B premium increase takes back nearly a third of that gain for people on Medicare.

Since most beneficiaries have their premiums deducted automatically from Social Security, they’ll see a smaller net increase in their monthly checks.

The average retiree benefit will rise from $2,015 to about $2,071, but the premium hike chips away at that.

High Earners Pay Up to $690

About 8% of Part B enrollees pay higher premiums based on their income.

If your modified adjusted gross income from 2024 exceeds $109,000 for individuals or $218,000 for couples filing jointly, you’ll owe an additional amount on top of the standard premium.

The surcharges range from $284.10 to $689. 90 per month depending on income. Married beneficiaries who file separately and lived with their spouse face even steeper brackets.

Hold Harmless Rule May Not Help

Federal law includes a protection called the hold harmless provision.

It prevents Part B premium increases from reducing a beneficiary’s Social Security payment below what they received the previous year.

But the rule only kicks in when the premium hike exceeds the dollar amount of the Social Security cost-of-living adjustment.

In 2026, the $56 average COLA increase is larger than the $17.90 premium hike, so most beneficiaries won’t qualify for protection.

Part A Costs Are Rising Too

Medicare Part A, which covers hospital stays and skilled nursing care, is also getting more expensive. The inpatient hospital deductible rises $60 to $1,736 in 2026.

If you’re hospitalized for more than 60 days in a benefit period, daily coinsurance jumps to $434 for days 61 through 90, and $868 per day after that.

Skilled nursing facility coinsurance increases to $217 per day for days 21 through 100. Most people don’t pay a Part A premium, but those who do will see increases too.