Overview
- Medicare actuaries estimate the higher Part B premium will bring in about $14 billion in additional revenue next year.
- CMS attributes the jump to faster growth in outpatient hospital care and Medicare Advantage, with projected Part B spending increases of 8.9% and 8.7% respectively.
- Other charges are also rising in 2026, including the Part B annual deductible to $283, the Part A full premium to $565, and the inpatient hospital deductible to $1,736.
- The $17.90 premium increase will absorb much of the average $56 Social Security cost‑of‑living raise, leaving roughly $38 more per month for many beneficiaries, subject to hold‑harmless rules.
- Rising costs in traditional Medicare could steer more seniors to Medicare Advantage plans that often advertise no monthly premium but typically limit provider networks and may increase taxpayer spending.