Here’s How Much Medicare Premiums Could Spike in January

The standard Medicare Part B premium could rise to $206.50 per month in 2026, up from $185 this year.

That 11.6% increase would be the largest single-year jump in about a decade, according to the latest annual Medicare trustees report.

Why this matters more than you think

Medicare Part B covers outpatient care like doctor visits and lab tests.

For 2025, the standard Part B premium is $185 per month, with a $257 annual deductible. After meeting that, beneficiaries with Original Medicare, also known as traditional Medicare, typically pay 20% on covered services.

The premium increase hits especially hard because premiums are automatically deducted from most retirees’ Social Security payments. So when premiums rise faster than Social Security cost-of-living adjustments (COLAs), retirees are left with smaller monthly benefit payments.

The forces driving the increase

That projected $206.50 monthly premium is unlikely to be a one-time spike. Medicare trustees project premiums will reach $347.50 by 2034.

Katy Votava, founder of the health care consulting firm Goodcare, noted in a report by TheStreet that estimates typically align closely with the final figures.

“Medicare B is in a hyper-inflation mode for the foreseeable future,” she said.

These cost drivers stand out:

• Outpatient care. Many expensive procedures have shifted from inpatient to outpatient care, moving costs from Medicare Part A to Part B.
• Funding structure. Under federal law, Medicare beneficiaries typically must pay 25% of Part B costs through premiums, with the government covering the rest. So when the government’s Part B costs rise, beneficiaries are virtually guaranteed to see their Part B premiums rise.
• Medicare Advantage growth. A majority of Medicare beneficiaries now have Medicare Advantage plans rather than Original Medicare. These plans cost the government more money than Original Medicare, according to Votava.

What it means for your Social Security check

As of June, the Social Security COLA was projected to be 2.5% for 2026. That would amount to around an extra $50 per month in the average retired worker’s benefits payment, which is currently about $2,000 per month.

If the standard Medicare Part B premium rises 11.6% ($21.50) next year, that means nearly half of the average retired worker’s COLA would be wiped out by higher Medicare premiums.

Retirees with higher incomes face additional pressure. About 8% of Medicare recipients pay income-related monthly adjustment amounts (IRMAA) in addition to the standard premium, which increase along with the standard premium.

What you can do about it

While you can’t dodge the premium increase entirely, these moves may help cushion the blow:

1. Learn to use Medicare’s Plan Finder tool. Several insurers have stopped paying brokers to promote their plans, according to TheStreet. That means it might behoove you to search for the best premium options yourself when open enrollment starts in October.
2. Look into other ways to reduce medical costs. Start by checking out “6 Ways Retirees Can Cut Their Health Care Costs.”
3. Hunt for relief elsewhere. Look into everything from your typical senior discounts to property tax reductions for seniors, and make sure you’re taking advantage of any for which you are eligible. Such savings can help make room in your budget for rising health care costs.
4. Contact your representatives. Let Congress know how projected premium increases affect you.

You can also get help from a licensed Medicare agent to maximize savings and find a plan that fits your needs. Compare plans today.