Medicare Premiums for 2025 and 2026: Costs and Income Surcharges

The standard Medicare Part B premium was $185 a month in 2025 and is $202.90 in 2026. Your total healthcare budget can also include drug coverage, supplemental insurance, deductibles and income-related surcharges. Start with the confirmed figures, then price the plans available where you live.

Confirmed Medicare premiums and deductibles

Sources: CMS's 2025 figures and 2026 figures. Most beneficiaries qualify for premium-free Part A. Work history, including a qualifying spouse's history, can affect whether you pay a premium and which rate applies.

A premium is only one part of the bill

The Part A deductible is assessed per benefit period, rather than once each calendar year. Part B generally leaves you paying 20% of the Medicare-approved amount for covered services after the deductible. Original Medicare has no annual out-of-pocket maximum unless you have other coverage that helps. Medicare Advantage plans have their own cost-sharing structure and annual limit for covered Part A and B services. Review Medicare's cost breakdown.

When comparing routes, use one column for Original Medicare plus your chosen Part D and Medigap policies, and another for a specific Medicare Advantage plan. Include the Part B premium in both. A plan advertised with a $0 additional premium does not mean all care is free.

Higher income can increase Part B and Part D costs

For 2026, the standard Part B premium applies at MAGI up to $109,000 on an individual return or $218,000 on a joint return. Above those thresholds, the total Part B premium ranges from $284.10 to $689.90 monthly, depending on the income band. Part D surcharges range from $14.50 to $91 monthly in addition to the plan premium. Separate-return rules differ for married people who lived together. Use the full CMS income tables for your filing situation.

Medicare generally uses income from two years earlier when determining these surcharges. A Roth conversion or investment sale can therefore affect a later year's premiums. If a qualifying life-changing event has reduced household income, such as stopping work, ask SSA about a new determination rather than assuming the old income figure must continue to apply. See SSA's IRMAA reduction process.

Part D drug costs have a separate limit

In 2026, the maximum Part D deductible is $615 and the annual out-of-pocket threshold for covered Part D drugs is $2,100. Once that threshold is reached, covered Part D drugs have no further out-of-pocket charge for the calendar year. Plan premiums and drugs outside the covered benefit are not a universal part of this protection. Do not treat it as a cap on every healthcare expense. See Medicare's drug-cost guide.

Compare plans using your exact medications, dosages and pharmacies. The cheapest premium can leave you with a higher total annual bill. Check eligibility for Extra Help if drug expenses are difficult to afford. The Medicare Prescription Payment Plan can spread covered drug expenses over the year, but does not reduce the total owed.

Build a budget without counting deductions twice

For one person paying the standard 2026 Part B premium, that premium alone is $2,434.80 annually. Add the actual annual premiums for any other policies, expected cost sharing and a reserve for expenses outside coverage. This is a budgeting exercise, not a prediction that everyone will incur a particular deductible or medical bill.

If your Social Security deposit already has Part B deducted, either budget using the gross benefit and subtract the premium, or use the net deposit and omit that same deduction. Mixing the two methods understates the money available for other expenses.

Review enrollment and coverage before making a switch

Medicare's annual Open Enrollment runs from October 15 through December 7, with changes generally effective January 1. It is not a universal Medigap enrollment window or a substitute for your initial Part B enrollment period. Check which enrollment right applies to the coverage you want through Medicare's joining-a-plan guidance.

• List your doctors, prescriptions, travel needs and current premiums.
• Read the next year's plan notice and verify provider and pharmacy participation.
• Compare total yearly costs, not just monthly premiums.
• Confirm replacement coverage and its effective date before ending an existing policy.

Keep your premium notices with your retirement planning checklist and repeat the comparison when your income or medical needs change.