Posted on 11/24/2025 9:23:46 PM PST by SeekAndFind
Medicare beneficiaries are bracing for one of the steepest cost increases in years as Medicare 2026 premiums rise sharply across multiple parts of the program. According to the Centers for Medicare and Medicaid Services, seniors will see a significant jump in Part B premiums, rising health care costs, fewer Medicare Advantage options, and meaningful changes to prescription drug coverage.
Even for retirees who rely heavily on Social Security, the increase in Medicare 2026 premiums will eat into much of next year’s cost of living adjustment. With household expenses already stretched by high prices for food, utilities, housing, and medical care, the new premium structure is shaping up to be a major financial challenge for older Americans.
Medicare Part B premiums will rise almost 10 percent next year, marking the largest percentage increase in four years and one of the biggest dollar increases in the history of the program. The standard monthly premium will climb to $202.90, which is $17.90 higher than the 2025 rate.
This spike is particularly painful because it will consume nearly one-third of the average Social Security cost-of-living adjustment of $56 per month for 2026.
Part B covers physician services, outpatient care, durable medical equipment, and physician-administered medications. These services have all risen in cost, creating pressure across the Medicare system.
Jeanne Lambrew, director of health care reform at The Century Foundation, summed up the sentiment of many retirees: “In a world in which people are concerned about the affordability of health care and all other needs, it’s pretty distressing that this increase is so large.”
Several forces are pushing Medicare 2026 premiums higher:
Medical and pharmaceutical costs continue to rise faster than general inflation, largely due to higher prices on outpatient services, specialty drugs, and physician care.
Aging baby boomers are using more outpatient services, especially as more treatments migrate from hospital settings to outpatient clinics.
Rachel Schmidt of Georgetown University’s Medicare Policy Initiative noted that demographic pressure, combined with the shift toward outpatient procedures, is a major contributor to rising costs.
CMS highlighted a major cost driver: the price of skin substitutes. Medicare spent more than $10 billion on these wound care products in 2024, compared with $256 million in 2019.
Without a CMS policy change that cuts spending on these products by nearly 90 percent, monthly Part B premiums would have risen an additional $11.
Changes in Medicare Part D plans will be more modest than they were in 2025, largely because the federal government implemented a last-minute subsidy program last year to protect seniors from steep premium increases.
The program was necessary because the Inflation Reduction Act requires insurers to shoulder more of the costs once enrollees hit the catastrophic coverage phase, capped at $2,000.
For 2026:
Roughly 69 million Americans are enrolled in Medicare, including people with disabilities. The Medicare open enrollment deadline is December 7.
The Medicare Advantage market is entering its second year of major restructuring as rising medical costs outpace federal reimbursements. This imbalance is forcing insurers to scale back or eliminate unprofitable plans.
Key developments for 2026:
Greg Berger of Oliver Wyman explained that insurers are exiting or shrinking products that no longer generate sustainable margins. “A lot of MAPD plans are trying not to grow,” he said.
Despite these cutbacks, the average Medicare beneficiary will still have roughly 39 plans available, down from 42 this year.
CMS Administrator Dr. Mehmet Oz attempted to reassure enrollees, saying, “Millions of Medicare beneficiaries will continue to have access to a broad range of affordable coverage options in 2026.”
Several supplemental benefits are declining next year:
The rise in Medicare 2026 premiums does more than strain seniors’ budgets. It has broader economic implications:
Higher medical premiums mean retirees will have less disposable income to spend on goods and services, affecting retail, travel, dining, and discretionary sectors.
Retirees living on limited income will likely cut spending or dip into savings at a faster pace.
Insurers that participate in Medicare Advantage could face a more volatile landscape as they balance higher medical costs with strict government reimbursement formulas. Investors may see more stability in insurers that maintain strong underwriting discipline and diversified revenue streams.
As Medicare covers less, demand for Medigap plans and ancillary coverage tends to rise, creating potential growth opportunities for private insurers.
Oh rly? Maybe another topic about this will make it true? I got my notice from my Advantage provider, no change to the health premium, a tiny bump for the other coverages.
Gotta wonder if folks weren’t forced onto Medicare at 65 and were “allowed” to utilize their retirement med plan maybe the costs wouldn’t be “rising”. Then again, there’s no love lost for big pharma after the billions raked in during Con-Vid as well as the multitude of unnecessarily lost and ruined lives.... among other things.
The best decision I made was to join the military so I can use the VA.
So, it’s about the same percentage as last year’s
I went backwards after the last COLA “raise”
Pretty woon it will cost more in premiums than seniors get in their ss checks.
Blue Cross of MI notified me of my plan being discontinued...only 2nd year on Medicare. Still haven’t found a replacement.
People who refuse to not draw a direct correlation to the millions brought in by Bidet are fools.
I got completely blind sided by the changes.
I live in Seattle, and Kaiser Permanente stopped offering the policy I had for 10 years.
Educating myself on new policies and new insurers has been one of the most complex problems I have had in my entire life!
The GOP is going to be blamed for every thing - including the new higher costs.
Wound care?..my guess is most of that is due to these younger people who get on medicare and have horrible cellulitis wounds from them shooting up...usually requires 6 weeks of IV antibiotics.....$$$$$$
Yes
Exactly. Everyone has to pay for the “free” healthcare given to illegals. Why should people over 65 be excluded?
EC
not beneficiary
medicare is a tax
we are forced to purchase something we did not ask for or may not need
Younger people getting on Medicare?? Medicare starts at 65
What isn’t mentioned in the article, is the increase of the standard deduction by $6K for single and $12K for married seniors up until it starts phasing out at $75K and $150K respectively. That should help to absorb additional medical premiums. The increase is good for this year and until after Trump leaves office.
Social Security Disability Insurance (SSDI) beneficiaries can get Medicare after 24 months of receiving benefits at any age.
SSDI beneficiaries diagnosed with ALS can get Medicare immediately.
When I see the wasted $$$ on ads on TV for stuff, I find a source that doesnt advertise like crazy. I buy aldis not publix. I won’t buy a new car. How the hell do you find a medicare plan that isnt dumping endless $$$ into TV ads?
I thought they got Medicaid
I don’t know, I’ll stick with advantage plan I have until they pullout of the area.
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