Medicare Part B Jumps to $202.90 in 2026: What It Means for Your Retirement Budget
The standard Medicare Part B premium rose to $202.90 a month in 2026, up 9.7% from $185.00 in 2025 — a $17.90 increase that consumes nearly a third of the average retiree's $56 Social Security COLA raise. High earners face far more: IRMAA surcharges push the top tier to $689.90 a month per person.
How much did Medicare Part B premiums increase in 2026?
CMS confirmed in November 2025 that the standard monthly Part B premium for 2026 is $202.90, up from $185.00 in 2025 — an increase of $17.90, or 9.7%. That's more than three times the 2.8% Social Security cost-of-living adjustment (COLA) for the same year. The annual Part B deductible rose alongside it, from $257 to $283, an increase of $26 (10.1%).
CMS attributes the jump mainly to projected price growth and utilization trends consistent with recent history. Notably, the agency said the increase would have been about $11 a month higher if it hadn't curbed unusually high spending on skin substitute products, a category CMS expects to shrink roughly 90% under a 2026 Physician Fee Schedule rule change.
| Medicare Part B cost | 2025 | 2026 | Change |
|---|---|---|---|
| Standard monthly premium | $185.00 | $202.90 | +$17.90 (+9.7%) |
| Annual deductible | $257 | $283 | +$26 (+10.1%) |
Source: CMS, “2026 Medicare Parts A & B Premiums and Deductibles” fact sheet (November 2025).
Why is your Social Security raise barely covering it?
The Social Security Administration set the 2026 COLA at 2.8%, lifting the average retired worker's monthly benefit by about $56, from $2,015 to $2,071. Because Part B premiums are deducted directly from most beneficiaries' Social Security checks, the $17.90 premium increase comes straight out of that raise before it ever reaches a bank account — leaving a net gain of roughly $38 a month for a beneficiary at the average benefit level, about 68% of the headline COLA.
| Average retired worker | Monthly amount |
|---|---|
| 2025 average benefit | $2,015 |
| 2026 COLA raise (+2.8%) | +$56 |
| Part B premium increase deducted | −$17.90 |
| Net monthly gain after Part B | ~$38.10 |
A federal rule called the hold harmless provision (Social Security Act Section 1839(f)) prevents a Part B premium increase from ever making a beneficiary's net Social Security check smaller than the year before. With a 2.8% COLA, almost every standard-premium retiree clears that bar comfortably, so the protection stays invisible this year. It does not, however, cover people who pay IRMAA surcharges, new Medicare enrollees, or anyone who doesn't already have Part B premiums deducted from Social Security.
What are the 2026 IRMAA brackets for Medicare Part B?
Higher earners pay more than the standard premium through the Income-Related Monthly Adjustment Amount (IRMAA). Your 2026 IRMAA tier is based on the modified adjusted gross income (MAGI) reported on your 2024 federal tax return — the one filed in 2025 — not your current income. The surcharge is added in five tiers on top of the $202.90 standard premium, ranging from an extra $81.20 to an extra $487.00 a month per person.
| 2024 MAGI — single | 2024 MAGI — married filing jointly | 2026 total monthly Part B premium |
|---|---|---|
| $109,000 or less | $218,000 or less | $202.90 |
| $109,001 – $137,000 | $218,001 – $274,000 | $284.10 |
| $137,001 – $171,000 | $274,001 – $342,000 | $405.80 |
| $171,001 – $205,000 | $342,001 – $410,000 | $527.50 |
| $205,001 – $499,999 | $410,001 – $749,999 | $649.30 |
| $500,000 or more | $750,000 or more | $689.90 |
Source: CMS 2026 Part B IRMAA schedule. Figures are per person — a married couple who both pay IRMAA each owe the listed amount individually. Income thresholds below the top tier are adjusted annually for inflation.
If your income has dropped since 2024 because of a life-changing event — retirement, divorce, the death of a spouse, or a work stoppage among them — you can file Form SSA-44 with the Social Security Administration to request a reconsideration based on more current income, rather than paying a surcharge tied to a year that no longer reflects your finances.
See how Medicare costs fit into your retirement number
Our Retirement Savings Calculator projects how rising fixed costs like Medicare premiums affect how long your savings need to last, so you can plan withdrawals around real numbers instead of last year's budget.
How does a bigger Part B premium affect a 4% rule budget?
A retiree drawing 4% a year from savings typically treats healthcare as a fixed, non-discretionary expense sitting alongside housing and food. The $17.90 monthly increase adds about $215 a year in Part B costs alone for a single retiree at the standard premium — a small line item in isolation, but one that has now outpaced the COLA in several recent years and compounds against a fixed withdrawal rate. For a couple both on Medicare, that's roughly $430 a year in additional Part B costs before counting Part D drug coverage or any IRMAA surcharge exposure.
The bigger risk sits with IRMAA. A retiree who does a large Roth conversion or realizes a large capital gain in one tax year can push their MAGI into a higher IRMAA tier two years later, adding thousands of dollars in annual Medicare costs that weren't part of the original withdrawal plan. Modeling Medicare costs, including IRMAA tier thresholds, alongside Social Security claiming age and withdrawal order is a core part of building a retirement budget that survives contact with actual Medicare bills.
Model IRMAA-sensitive withdrawals before you convert
Our Retirement Planning Model (Monte Carlo) projects a 50-year retirement with employer match, Roth vs. Traditional comparisons, and Social Security claim-age optimization, so a Roth conversion decision accounts for its full cost — not just the tax bill.
Frequently asked questions about the 2026 Medicare Part B premium
How much is the Medicare Part B premium in 2026?
The standard Medicare Part B premium is $202.90 a month in 2026, up $17.90 (9.7%) from $185.00 in 2025, according to CMS. The annual Part B deductible also rose, from $257 to $283, an increase of $26.
Why did Medicare Part B premiums rise 9.7% in 2026?
CMS attributes the increase mainly to projected price growth and historical utilization trends in Medicare Part B services. The agency noted the increase would have been roughly $11 a month higher if it hadn't reined in spending on skin substitute products, which is expected to fall about 90% under the 2026 Physician Fee Schedule Final Rule.
Will my Social Security check actually go up in 2026?
For most retirees, yes, but by less than the headline COLA suggests. The 2.8% cost-of-living adjustment raises the average retired worker's benefit by about $56 a month, from $2,015 to $2,071. Since Part B premiums are typically deducted directly from Social Security checks, the $17.90 premium increase consumes roughly a third of that raise before it ever reaches a retiree's bank account.
What is Medicare's hold harmless provision?
The hold harmless provision, under Section 1839(f) of the Social Security Act, prevents a Medicare Part B premium increase from shrinking a beneficiary's net Social Security check below the prior year's amount. It only applies to people who have Part B premiums deducted from Social Security, and only protects the portion of a premium increase that would exceed that year's COLA. With a 2.8% COLA in 2026, most standard-premium retirees clear that bar without needing the protection, but it does not cover IRMAA surcharges, new enrollees, or anyone not already having Part B deducted from benefits.
What income triggers IRMAA surcharges in 2026?
For 2026, individuals with modified adjusted gross income (MAGI) above $109,000, or married couples filing jointly above $218,000, pay an Income-Related Monthly Adjustment Amount (IRMAA) surcharge on top of the standard Part B premium. The surcharge scales through five tiers, topping out at $689.90 a month per person for individuals at or above $500,000 MAGI (or couples at or above $750,000).
What income year determines my 2026 IRMAA?
Your 2026 IRMAA is based on the modified adjusted gross income reported on your 2024 federal tax return, the one filed in 2025. This two-year lookback means a high-income year, such as one with a large capital gain, retirement account withdrawal, or Roth conversion, can trigger a surcharge two years later even if income has since dropped.
Can I appeal an IRMAA surcharge?
Yes. If your income has dropped since the tax year used to calculate your IRMAA due to a qualifying life-changing event, such as retirement, divorce, or the death of a spouse, you can file Form SSA-44 with the Social Security Administration to request a reconsideration using more current income. Retirement itself is one of the most common accepted reasons.
How should retirees budget for rising Medicare premiums?
Treat Part B premiums as a fixed, rising line item in retirement withdrawal planning rather than a rounding error. Since premiums have risen faster than the COLA in most recent years, building a small annual buffer into a withdrawal plan, and checking IRMAA exposure before large one-time income events like Roth conversions, using a tool like our Retirement Savings Calculator to re-run projections, helps avoid surprise cuts to net retirement income.
Data sources: CMS: 2026 Medicare Parts A & B Premiums and Deductibles (standard premium, deductible, and IRMAA figures). Social Security Administration: 2026 COLA Fact Sheet (2.8% COLA and average retired-worker benefit figures). All withdrawal and retirement-budget figures independently verified against our Retirement Savings Calculator. Analysis by the staff at accurate.software.