Welcome to 2026! As January 1 marks the start of the new Medicare plan year, it also brings changes to Medicare costs and benefits.
Below are changes that affect individuals enrolled in Original Medicare and a Medicare Supplement (Medigap) plan. Please note that these changes are separate from plan-specific changes, such as premiums, deductibles or copayments associated with Medicare Part C (Medicare Advantage), Part D prescription drug plans or Medicare Supplement policies.
Medicare Part B Premium Changes
In 2026, the Centers for Medicare & Medicaid Services (CMS) increased the standard Medicare Part B premium from $185.00 to $202.90 per month. This represents a monthly increase of $17.90, or approximately 9.7%.
This increase affects all Medicare beneficiaries enrolled in Part B.
While we are never happy with any increase in costs, it would have been higher if not for recent efforts by the current administration to reduce what Medicare pays for certain skin substitute products. Spending in this area had increased dramatically in recent years, and these changes helped lower overall costs for the Medicare program, and ultimately for beneficiaries.
Medicare Part B Deductible Changes
The Medicare Part B deductible increased from $257 in 2025 to $283 in 2026, an increase of $26.
This change impacts all beneficiaries enrolled in Original Medicare and a Medicare Supplement, most commonly Plans G, N and High-Deductible Plan G.
The deductible is the amount you must pay out-of-pocket before Medicare begins sharing in covered medical costs.
Medicare Part D Updates
For 2026, the maximum annual Part D deductible will be $615, a $25 increase from 2025. Plans may set a lower deductible, but they cannot exceed this amount.
The maximum out-of-pocket cost for prescription drugs (excluding premiums) will be $2,100, representing a $100 increase from 2025.
Lower Costs for Certain Medications
The Medicare Drug Negotiation Program goes into effect in 2026 and includes 10 medications selected for reduced pricing. If you take any of the following medications, your out-of-pocket cost per refill may be lower in 2026:
- Eliquis
- Jardiance
- Xarelto
- Januvia
- Farxiga
- Entresto
- Enbrel
- Stelara
- NovoLog / Fiasp
Medicare Prescription Payment Plan (M3P Program)
The Medicare Prescription Payment Plan (M3P), introduced in 2025, will continue in 2026. This voluntary program allows beneficiaries to spread out their prescription drug costs evenly over the plan year.
All stand-alone Part D and Part C (with RX benefits) plans will offer this option.
This benefit can ease the financial burden especially for those who reach high out-of-pocket costs early in the year.
Example 1:
- January prescription costs: $600
- Enrolled in M3P: $600 spread over 12 months = $50 per month
Example 2:
- March prescription costs: $1,200
- Enrolled in M3P: $1,200 spread over 10 months = $120 per month
IRMAA Payments in 2026
If your 2024 income exceeded:
- $109,000 for an individual, or
- $218,000 for a married couple filing jointly,
a Medicare beneficiary will pay an additional surcharge for Medicare Parts B and D in 2026. For specific payments, you can also check your SSA statement or visit your medicare.gov account.
Where to Find Your Medicare Costs for 2026
- Your Annual Medicare Premium Notice was mailed in November, detailing your Part B premium and any IRMAA-related charges.
- If you receive Social Security benefits, your December statement included your COLA increase and updated Medicare premiums.
If you experienced a qualifying life event, such as retirement or a reduction in work hours, and your income is now lower than it was in 2024, you may be able to appeal your 2026 IRMAA determination by filing Form SSA-44 with the Social Security Administration.
Your Trusted Medicare Partner
At MP Group, we’re committed to use our newsletter as a vehicle to communicate important changes throughout the year. If you have questions about these updates or need additional guidance, don’t hesitate to contact me at any time.
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