Medicare Part B recipients are about to see the second-largest premium increase in Medicare’s history. The nearly 10% increase in 2026 will push the monthly premium above $200 for the first time.
The standard monthly Part B premium will rise 9.7%, from $185 to $202.90. Part B typically covers doctors’ visits and hospital outpatient care. The new premium will be 66% higher than it was in 2015, according to The New York Times.
Part B’s annual deductible is also rising by 10%, from $257 to $283.
Why is this increase important?
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The largest dollar increase for a Medicare Part B premium was in 2022, when it increased by $21.60 monthly.
While a less than $20 increase may seem small to some, economic experts closely watch the Part B premiums. This is because they are typically deducted from a recipient’s Social Security benefit.
In October, the Social Security Administration announced a 2.8% cost-of-living adjustment, or COLA, for 2026. This means the typical recipient who now collects $2,008 a month will see a $56 monthly increase.
However, the Part B increase effectively lowers the COLA to 1.9% — significantly lower than inflation. The Bureau of Labor Statistics says consumer prices have risen by 3%.
Senate Democrats have introduced a bill that would increase Social Security benefits by an extra $200 a month until July 2026. However, the measure has little chance of passing the Republican-controlled Senate.
Who pays the increase?
The Part B increase won’t affect everyone the same. If the increase is larger than the value of a recipient’s COLA, a “hold-harmless” provision prevents the premium from going up.
However, the unpaid portion is spread among those the rule doesn’t protect.
Those who make less than the average but still have a COLA that just barely exceeds the Part B increase would see the largest negative impact.
If a recipient’s monthly benefit is less than $640, they would not see the full $17.90 increase, according to Newsweek. In that specific case, the recipient would not see a reduction in benefits, but they would also not see an increase.
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