Although Medicare helps cover the costs of most medical services, it’s essential that you still plan for out-of-pocket expenses and understand that it’s not truly “free” health care.
In this article, we’ll outline what to expect for Medicare costs in 2026 so that you can budget accordingly.
[READ: How Medicare Is Changing in 2026 and How It Will Affect Your Coverage]
Medicare Costs in 2026
Medicare beneficiaries are on the hook to cover the costs of premiums, deductibles, copays and penalties — all of which can vary depending on where you live and factors such as your income level.
These fees are adjusted annually due to inflationary pressures and fluctuations in health care costs. Medicare cost changes for the coming calendar year are typically set each spring and announced during open enrollment in the fall.
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[READ: Medicare vs. Medicare Advantage: How to Choose.]
Medicare Part A (Hospital Coverage) Premiums and Deductibles
Most people don’t have to pay a Medicare Part A (hospital) insurance premium when they become eligible for Medicare at age 65. That’s because most people have worked long enough to qualify for premium-free Part A coverage. The 2026 Part A monthly premium costs are based on the following scale:
— $0 premium: Those who worked and paid Medicare taxes for at least 10 years or 40 quarters
— $285 premium: If you or your spouse worked and paid Medicare taxes for 30 to 39 quarters (7.5. to 10 years)
— $518 premium: If you or your spouse worked and paid Medicare taxes for fewer than 30 quarters (less than 7.5 years)
Deductibles are the money you must pay out of pocket for health care before your insurance coverage kicks in. In 2026, the Medicare Part A deductible is projected to be $1,716 during each benefit period. A benefit period starts on the day you are admitted as an inpatient to a hospital or skilled nursing facility and ends once you have not received any inpatient hospital or SNF care for 60 consecutive days. Benefit periods are not tied to the calendar year, so you can have multiple benefit periods within the same year. For example, if you are admitted to the hospital again after a 60-day break, a new benefit period begins, and that means you’ll have to pay the deductible again — even if the treatment is for the same condition.
Once you’ve paid the deductible, you’ll owe $0 for hospital stays lasting up to 60 days.
If your hospital stay is longer than 60 days:
— From days 61 through 90, you will pay $429 per day in coinsurance.
— From days 90 to 150, the coinsurance amount increases to $858 per day for these lifetime reserve days.
— After day 150, you pay 100% of all costs yourself.
Original Medicare covers up to 90 days of inpatient hospital care per benefit period. In addition, you get an extra 60 days of coverage, called lifetime reserve days, which can be use only once in your lifetime. During these days, you must pay a coinsurance rate of $858 per day. These lifetime reserve days don’t renew each year or with a new benefit period; once you’ve used them, they’re gone for good.
[READ Understanding Parts of Medicare: A Through N Explained]
Medicare Part B (Medical Insurance) Premiums and Deductibles
Medicare Part B (medical) insurance is projected to cost $206.50 each month in 2026 for most people, but you’ll pay more if your individual income is more than $106,000. People who file jointly with their spouse will pay more if their joint income is more than $212,000.
The Part B deductible in 2026 is projected to be $288. After you pay this, you’ll be expected to pay 20% of the Medicare-approved amount for:
— Doctor and hospital services
— Outpatient therapies
— Durable medical equipment, such as blood sugar meters, walkers and commode chairs
Medicare Part C (Medicare Advantage) Premiums and Deductibles
Medicare Part C, also called Medicare Advantage, is fundamentally different from Medicare Parts A and B, which are often collectively referred to as “original Medicare.” That’s because Medicare Advantage plans are sold and managed by private insurance companies that are licensed through Medicare to offer plans for adults age 65 and older.
By comparison, original Medicare is managed by the federal government, and private insurance companies are not involved.
Medicare Advantage plans are expected to see major shake-ups in 2026, says Whitney Stidom, vice president of consumer enablement with eHealth Inc., a health insurance broker and online resource provider headquartered in Santa Clara, California.
“A significant number of Medicare Advantage plans are making changes to their cost and benefits for 2026, and some plans are being eliminated entirely,” she notes. According to KFF, in 2026, Medicare beneficiaries will have the option of 32 Medicare Advantage prescription drug plans (meaning MA plans that include prescription drug coverage) in 2026, down from 34 options in 2025.
If you are currently enrolled in a Medicare Advantage plan, it’s crucial you understand what’s happening with your plan in 2026, as it may be going away entirely or your out-of-pocket cost burden could shift.
Premiums for Medicare Advantage plans vary based on the insurer and county. The projected average premium for a Medicare Advantage plan in 2026 is $14 per month, according to the Centers for Medicare & Medicaid Services.
Although your premiums may be lower with a Medicare Advantage plan, the network of doctors covered by the plan will likely be smaller, and this is a trend that’s expected to increase in 2026 as these private insurers seek to control costs. Medicare Advantage plans can also require prior approval before you’re able to obtain services, or they can deny coverage for health care you’ve received.
However, with a Medicare Advantage plan, you typically don’t need a separate prescription drug plan, and some coverage for dental, hearing and vision care, as well as other benefits, may be included.
[READ Medigap vs. Medicare Advantage: Which Should You Buy?]
Medicare Part D (Prescription Drugs) Premiums and Deductibles
Medicare Part D is the prescription drug piece of Medicare. It’s not a requirement for beneficiaries to purchase this option, but if you don’t and decide later you want it, you’ll be hit with a late-enrollment penalty. (More information about that penalty follows below.)
If you’re on original Medicare and opt to purchase Part D health insurance to cover the cost of your prescription medications, as most people do, CMS estimates that a stand-alone, basic premium will cost you an average of $34.50 a month for 2026.
Premiums may vary from plan to plan. Similar to Part B, people with Medicare who have higher incomes will pay higher premiums for Part D plans.
The Part D deductible will be $615 for 2026.
Medicare Supplement (Medigap) Premiums and Deductibles
Medicare supplement plans, also called Medigap, are supplemental insurance policies that help cover out-of-pocket costs not covered by Medicare Parts A and B. And note: You cannot purchase a Medigap plan with Medicare Advantage.
These supplemental insurance plans — lettered A, B, C, D, F, G, K, L, M and N — are offered by private insurance companies. They are designed to cover deductibles and copayments primarily. Depending on your plan, for instance, supplemental insurance may cover up to 100% of the Medicare Part A coinsurance and hospital costs up to a year after your Medicare benefits have run out, as well as other costs for Part B care.
The costs of these plans vary depending on the provider, the plan and where you live. Each company can set its own premium for Medigap policies, and some offer discounts to certain populations, such as nonsmokers or women.
The benefits provided by each Medigap plan are the same, no matter which company sells it. But deductibles can also vary depending on the specific plan. Medigap plans F, G and J, for instance, are high-deductible options that are projected to have a cap of $2,800 for deductibles in 2026.
Understanding Medicare Out-of-Pocket Maximums
Original Medicare (Parts A and B) has no out-of-pocket maximum.
“There is no cap on the limit that somebody can pay under Part B, and that’s usually one of the selling points of a Medicare Advantage plan, where Medicare Advantage plans do cap,” explains Joel Mekler, a health benefits professional, Medicare expert and writer of the “Medicare Moments” weekly column in the New Castle News in Pennsylvania.
The Medicare Advantage out-of-pocket maximum for 2026 will be $9,250 for in-network services, versus $9,350 in 2025, according to the CMS.
Deductibles have to be paid before the plan pays anything. The plan keeps track of your copays and coinsurance throughout the year, and if the total ever reaches the MOOP (maximum out-of-pocket), the plan pays 100% of your costs for the rest of the year.
Importantly, Medicare Advantage plans’ out-of-pocket maximums only include costs for Part A and Part B services. Any costs you pay for Part D drugs or for supplemental benefits, such as dental or hearing, do not count toward the maximum and are not included. Even if you reach your out-of-pocket maximum, you will still need to pay for your supplemental benefits and the cost-sharing for your prescription drugs.
Medical Costs Not Covered by Medicare
When preparing your budget, keep in mind that original Medicare doesn’t provide coverage for certain health care expenses, including:
— Nonmedically necessary foot care
— Routine dental visits
— Cosmetic procedures, such as Botox
— Routine vision care
Also, should you need more than 100 days of skilled nursing care, original Medicare won’t pay for it.
Shub Debgupta, founder and CEO of Precision Health, a health analytics company based in Arlington, Virginia, notes there’s a difference between being under observation in a hospital and being admitted. Medicare will cover admissions but may have some restrictions on observation, which means depending on the nature of the stay, you might be on the hook to pay for your care.
All individuals with a Part D plan, either a stand-alone drug plan or a Medicare Advantage drug plan, also need to look at the formulary — the list of covered medications — very closely. Some drugs, for instance, might be covered under Medicare Part B rather than a Medicare Part D prescription drug plan.
Examples of drugs covered by Part B insurance include injectable osteoporosis medications and oral cancer drugs, which are typically administered in your doctor’s office.
Inflation Reduction Act-Related Changes in 2026
In 2026, some Medicare beneficiaries will start seeing the impact of the passage of the Inflation Reduction Act of 2022 and the price negotiations it included for certain medications. Prices will come down on 10 common medications including:
— Eliquis
— Enbrel
— Entresto
— Farxiga
— Imbruvica
— Januvia
— Jardiance
— Fiasp/NovoLog
— Stelara
— Xarelto
Insulin prices might also come down for some individuals, as beneficiaries will pay the lesser of:
— $35 per month for insulin, or
— 25% of the maximum fair price established for the covered insulin product under the Medicare Drug Price Negotiation Program, or
— 25% of the negotiated price under the stand-alone Medicare prescription drug plan or Medicare Advantage plan with prescription drug coverage
Other IRA-related changes that will continue in 2026 include:
— A $0 cost for Part D-recommended vaccines
— A cap of $2,100 on out-of-pocket costs for Part D-covered prescription medications
— An option to enroll in the Medicare Prescription Payment Plan, which lets beneficiaries make monthly payments toward their prescription drug costs
How to Find a Medicare Plan
There are many options for Medicare and Medicare Advantage plans available to you, and wading through them all can feel overwhelming. But it’s important to get information and compare plans to find the most cost-effective one that will meet your needs.
You can start your search by connecting with your local Area Agency on Aging, where you can access resources and guidance from local advisers and others who might be able to assist you. If you’re considering enrolling in a Medicare Advantage or Medicare Part D plan, you can also search for the Best Medicare Advantage and Part D Companies in your area.
In all cases, Stidom recommends getting on the ball as soon as possible to ensure your health care plan is adequate for your needs in 2026. “With widespread changes for many Medicare plans in 2026, being proactive is key.” It can help save time, money and your own good health in the new year.
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Navigating Medicare Deductibles and Premiums in 2026 originally appeared on usnews.com
Update 10/31/25: This story was published at an earlier date and has been updated with new information.
