CMS Announces 2026 Medicare Premiums and Deductibles: Moderate Increases Across Parts A, B, and D
Key Takeaways
- CMS released 2026 Medicare Part A, B, and D premiums and deductibles, with moderate increases from 2025.
- The standard Part B premium will rise to $202.90, and the deductible will increase to $283.
- Policy adjustments in the 2026 Physician Fee Schedule are expected to mitigate higher premium growth by reducing spending on skin substitutes.
On November 14, 2025, the Centers for Medicare & Medicaid Services (CMS) announced the 2026 Medicare Parts A and B premiums, deductibles, and coinsurance rates, along with the updated income-related monthly adjustment amounts for Part D. The annual update affects millions of beneficiaries nationwide and reflects routine adjustments for inflation, utilization trends, and policy reforms.
Medicare Part A: Inpatient Costs and Coinsurance
For 2026, the Medicare Part A inpatient hospital deductible will increase to $1736, up $60 from 2025. Daily hospital coinsurance will rise to $434 for days 61 to 90 and $868 for lifetime reserve days. Beneficiaries in skilled nursing facilities will pay $217 per day for days 21 to 100 of extended care, up from $209.50.
While approximately 99% of beneficiaries pay no Part A premium, individuals with fewer than 40 quarters of Medicare-covered employment must pay to enroll. The full Part A premium will be $565 per month, while those eligible for reduced rates (30 to 39 quarters) will pay $311 per month.
Medicare Part B: Premium and Deductible Adjustments
The standard Part B monthly premium will rise to $202.90 in 2026, a $17.90 increase from 2025. The annual deductible will increase by $26 to $283. According to CMS, the adjustment primarily reflects projected price changes and utilization consistent with historical trends.
CMS noted that policy interventions under the 2026 Physician Fee Schedule Final Rule—specifically reductions in spending on skin substitutes—helped limit premium growth by an estimated $11 per month. The standard immunosuppressive drug premium for transplant recipients who continue Part B drug coverage will be $121.60.
Income-Related Premiums for Higher Earners
Since 2007, Medicare Part B premiums have been income-based. Roughly 8% of beneficiaries fall into these higher-income brackets. For 2026, total monthly Part B premiums for individuals range from $202.90 (income ≤$109 000) to $689.90 (income ≥$500 000).
For Part D, which covers prescription drug benefits, approximately 8% of beneficiaries will pay income-related monthly adjustment amounts ranging from $14.50 to $91.00, depending on income level and tax filing status.
These updates carry important implications for managed care organizations, payers, and providers involved in senior care coordination. Increases in out-of-pocket costs can influence plan enrollment decisions, care utilization, and patient adherence—particularly among fixed-income populations.
Additionally, the reduction in projected Part B spending highlights the federal government’s continued focus on value-based care and cost containment, signaling potential future shifts in reimbursement and product utilization strategies. Managed care professionals should anticipate updates to beneficiary communication materials, formulary designs, and actuarial modeling for 2026.
Conclusion
The 2026 Medicare cost adjustments reflect a modest rise in premiums and deductibles, consistent with broader health care inflation trends. CMS emphasized that regulatory efforts, such as curbing spending on high-cost materials, helped moderate increases while maintaining access to essential care.
Reference
2026 Medicare parts A & B premiums and deductibles. Fact Sheet. CMS.gov. Published November 14, 2025. Accessed November 17, 2025. https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles
