2026 Medicare Costs: Parts A & B Explained

Most people assume Medicare is nearly free. Then they get their first bill and realize Original Medicare comes with premiums, deductibles, and Coinsurance that can add up to thousands of dollars a year — with no annual cap on what you can owe.

Here are the official 2026 Medicare costs for Parts A and B, what each number means, and how most people protect themselves from the expenses Original Medicare leaves behind.

2026 Medicare Part B Costs

Part B covers doctor visits, outpatient care, preventive services, and Medically necessary equipment. Most people pay for Part B because it is not free the way Part A typically is.

Part B Monthly Premium

The standard 2026 Part B premium is $202.90 per month, up from $185.00 in 2025. If you receive Social Security benefits, this amount is usually deducted automatically from your check.

Higher-income enrollees pay more through a surcharge called IRMAA (Income-Related Monthly Adjustment Amount). If your modified adjusted gross income exceeded $106,000 as an individual — or $212,000 if married filing jointly — in 2023, you pay a higher Part B premium in 2026. See our IRMAA calculator to estimate your amount.

Part B Annual Deductible

The 2026 Part B deductible is $283 per year, up from $257 in 2025. You pay this amount before Medicare begins covering most Part B services.

Part B Coinsurance

After meeting the deductible, you pay 20% of the Medicare-approved amount for most Part B services. Medicare pays the other 80%.

That 20% has no cap. A $100,000 surgery would leave you with a $20,000 bill under Original Medicare alone. This is the primary reason most people add a Medicare Supplement (Medigap) plan.

2026 Medicare Part A Costs

Part A covers inpatient hospital stays, Skilled nursing facility care, Hospice, and some Home health care. Most people qualify for premium-free Part A if they (or their spouse) worked and paid Medicare taxes for at least 10 years (40 quarters).

Part A Premium (If You Must Buy It)

If you have 30–39 work quarters, your 2026 Part A premium is $311 per month.
If you have fewer than 30 work quarters, it is $565 per month.

Most people pay $0 for Part A.

Part A Inpatient Hospital Deductible

The 2026 Part A deductible is $1,736 per Benefit period, up from $1,676 in 2025.

This is not an annual deductible — it resets with each new benefit period. If you are hospitalized more than once in a year, you could owe this deductible multiple times.

Part A Hospital Coinsurance

Most hospital stays are short — but the per-day coinsurance charges for extended stays can be significant.

Skilled Nursing Facility (SNF) Coinsurance

If you need Skilled nursing care after a qualifying hospital stay, Medicare covers the first 20 days at no cost. After that:

To qualify for SNF coverage, you must first have a medically necessary inpatient hospital stay of at least 3 consecutive days.

What These Costs Mean Together

Under Original Medicare alone, a single hospitalization could cost you:

• $1,736 Part A deductible
• $283 Part B deductible (if not already met)
• 20% of all physician and outpatient charges with no cap

There is no annual out-of-pocket maximum under Original Medicare. Your exposure is theoretically unlimited.

How Most People Limit Their Medicare Costs

The most common solution is a Medicare Supplement (Medigap) plan. These plans — sold by private insurance companies — pay most or all of the costs Original Medicare leaves behind.

Medicare Supplement Plan G, the most popular option for new enrollees, covers:

• The Part A hospital deductible ($1,736)
• Part A hospital coinsurance through day 150
• Skilled nursing facility coinsurance (days 21–100)
• Part B coinsurance (that 20% with no cap)
• Part B Excess charges
• Foreign travel emergency coverage (80% up to $50,000 lifetime)

The only cost Plan G does not cover is the Part B annual deductible ($283). After you pay that once per year, Medicare and your Medigap plan cover the rest.

Medicare Supplement Plan N covers the same benefits as Plan G — except it does not cover Part B excess charges and requires small copays for some office visits (up to $20) and emergency room visits (up to $50 if not admitted).

Get a free Medicare Supplement quote to compare Plan G and Plan N rates in your area.

2026 Medicare Cost Summary Table

Frequently Asked Questions

Does the Part A deductible reset every year?
No — the Part A deductible resets with each benefit period, not each calendar year. A benefit period starts when you are admitted to a hospital and ends after you have been out of the hospital or skilled nursing facility for 60 consecutive days. In theory, you could owe the deductible more than once in a single year.

Is the Part B premium the same for everyone?
No. The standard premium ($202.90/month in 2026) applies to most enrollees. However, if your income was above $106,000 (individual) or $212,000 (married filing jointly) in 2023, you pay a higher premium through IRMAA. Use our IRMAA calculator to see if this applies to you.

Does Medicare have an annual out-of-pocket maximum?
Original Medicare does not have one. Medicare Advantage Plans are required to cap your out-of-pocket costs, but those caps can be $5,000–$8,000 or higher. A Medigap plan effectively creates a very low out-of-pocket ceiling — often just the Part B deductible ($283 in 2026) under Plan G.

When do these costs change?
Medicare costs are updated annually by the Centers for Medicare & Medicaid Services (CMS), typically announced each fall for the following year. The figures on this page reflect the official 2026 amounts.

Do I have to pay Part B if I’m still working?
It depends. If you have health coverage through an employer with 20 or more employees based on active employment, you may be able to delay Part B without Penalty. If your employer has fewer than 20 employees, Medicare becomes your primary insurance at 65 and you should enroll. Use our Initial Enrollment Calculator to understand your specific timeline.

Next Steps

If the Medicare cost numbers above concern you, you’re not alone. Most people we talk to are surprised by how much Original Medicare leaves uncovered.

A Medicare Supplement plan can eliminate most of those out-of-pocket costs for a predictable monthly premium. Because Medigap plans are standardized, Plan G from one company covers exactly the same things as Plan G from another — the only difference is the premium.

Get a free, no-pressure quote to compare Medigap rates from top carriers in your area.

Source: Official 2026 Medicare cost figures from the Centers for Medicare & Medicaid Services (CMS). All figures on this page reflect confirmed 2026 amounts. Medicare costs are updated annually each fall.

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