Medicare 2026 Premiums Set to Surge. Seniors Face Higher Costs Across the Board.
Global Market News ^ | 11/24/2025
Posted on 11/24/2025 9:23:46 PM PST by SeekAndFind
Medicare beneficiaries are bracing for one of the steepest cost increases in years as Medicare 2026 premiums rise sharply across multiple parts of the program. According to the Centers for Medicare and Medicaid Services, seniors will see a significant jump in Part B premiums, rising health care costs, fewer Medicare Advantage options, and meaningful changes to prescription drug coverage.
Even for retirees who rely heavily on Social Security, the increase in Medicare 2026 premiums will eat into much of next year’s cost of living adjustment. With household expenses already stretched by high prices for food, utilities, housing, and medical care, the new premium structure is shaping up to be a major financial challenge for older Americans.
Medicare Part B Premiums to Jump Nearly 10 Percent in 2026
Medicare Part B premiums will rise almost 10 percent next year, marking the largest percentage increase in four years and one of the biggest dollar increases in the history of the program. The standard monthly premium will climb to $202.90, which is $17.90 higher than the 2025 rate.
This spike is particularly painful because it will consume nearly one-third of the average Social Security cost-of-living adjustment of $56 per month for 2026.
Part B covers physician services, outpatient care, durable medical equipment, and physician-administered medications. These services have all risen in cost, creating pressure across the Medicare system.
Jeanne Lambrew, director of health care reform at The Century Foundation, summed up the sentiment of many retirees: “In a world in which people are concerned about the affordability of health care and all other needs, it’s pretty distressing that this increase is so large.”
Why Medicare 2026 Premiums Are Rising So Fast
Several forces are pushing Medicare 2026 premiums higher:
1. Medical inflation
Medical and pharmaceutical costs continue to rise faster than general inflation, largely due to higher prices on outpatient services, specialty drugs, and physician care.
2. Higher usage
Aging baby boomers are using more outpatient services, especially as more treatments migrate from hospital settings to outpatient clinics.
Rachel Schmidt of Georgetown University’s Medicare Policy Initiative noted that demographic pressure, combined with the shift toward outpatient procedures, is a major contributor to rising costs.
3. Exploding spending on wound care products
CMS highlighted a major cost driver: the price of skin substitutes. Medicare spent more than $10 billion on these wound care products in 2024, compared with $256 million in 2019.
Without a CMS policy change that cuts spending on these products by nearly 90 percent, monthly Part B premiums would have risen an additional $11.
Prescription Drug Coverage: What Seniors Should Expect in 2026
Changes in Medicare Part D plans will be more modest than they were in 2025, largely because the federal government implemented a last-minute subsidy program last year to protect seniors from steep premium increases.
The program was necessary because the Inflation Reduction Act requires insurers to shoulder more of the costs once enrollees hit the catastrophic coverage phase, capped at $2,000.
For 2026:
- The number of available plans will decline modestly, according to consulting firm Oliver Wyman.
- Some insurers, including Elevance, are withdrawing from the market entirely.
- Many Part D plans will raise premiums by up to $50, while others will lower or hold premiums steady.
- Shopping around remains critical. As expert Brooks Conway noted, “If seniors in the standalone PDP market are willing to shop, there is still stability.”
Roughly 69 million Americans are enrolled in Medicare, including people with disabilities. The Medicare open enrollment deadline is December 7.
Medicare Advantage Shrinks for 2026 as Insurers Pull Back
The Medicare Advantage market is entering its second year of major restructuring as rising medical costs outpace federal reimbursements. This imbalance is forcing insurers to scale back or eliminate unprofitable plans.
Key developments for 2026:
- Plan choices will fall 10 percent, dropping to 3,373 offerings nationwide.
- Major insurers, including CVS Aetna, Humana, UnitedHealthcare, and Elevance, will reduce options in at least 100 counties.
- An estimated 2 million beneficiaries will be affected by shrinking plan availability.
- Some counties will have no Medicare Advantage options at all for the first time.
Greg Berger of Oliver Wyman explained that insurers are exiting or shrinking products that no longer generate sustainable margins. “A lot of MAPD plans are trying not to grow,” he said.
Despite these cutbacks, the average Medicare beneficiary will still have roughly 39 plans available, down from 42 this year.
CMS Administrator Dr. Mehmet Oz attempted to reassure enrollees, saying, “Millions of Medicare beneficiaries will continue to have access to a broad range of affordable coverage options in 2026.”
Additional Cost Pressures Seniors Will Face in 2026
Several supplemental benefits are declining next year:
- Dental allowances will fall 10 percent, averaging $2,107.
- Fewer plans will offer $0 drug deductibles.
- Maximum out-of-pocket limits for medical services will rise $490, about a 10 percent increase.
- Average premiums for Medicare Advantage plans with prescription coverage will rise from $60 to $66.
Why This Matters for Retirees and Investors
The rise in Medicare 2026 premiums does more than strain seniors’ budgets. It has broader economic implications:
1. Reduced consumer spending
Higher medical premiums mean retirees will have less disposable income to spend on goods and services, affecting retail, travel, dining, and discretionary sectors.
2. Greater financial stress on fixed-income households
Retirees living on limited income will likely cut spending or dip into savings at a faster pace.
3. Impact on health insurance companies
Insurers that participate in Medicare Advantage could face a more volatile landscape as they balance higher medical costs with strict government reimbursement formulas. Investors may see more stability in insurers that maintain strong underwriting discipline and diversified revenue streams.
4. Growth in supplemental insurance markets
As Medicare covers less, demand for Medigap plans and ancillary coverage tends to rise, creating potential growth opportunities for private insurers.
TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: healthcare; inflation; medicare; premiums
Navigation: use the links below to view more comments.
first 1-20, 21-38 next last
1 posted on 11/24/2025 9:23:46 PM PST by SeekAndFind
To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; BraveMan; cardinal4; ...
Oh rly? Maybe another topic about this will make it true? I got my notice from my Advantage provider, no change to the health premium, a tiny bump for the other coverages.
2 posted on 11/24/2025 9:41:24 PM PST by SunkenCiv (Kudos to the Admin Moderator, reason: "Randspam" [ 4354167 ])
To: SeekAndFind
Gotta wonder if folks weren’t forced onto Medicare at 65 and were “allowed” to utilize their retirement med plan maybe the costs wouldn’t be “rising”. Then again, there’s no love lost for big pharma after the billions raked in during Con-Vid as well as the multitude of unnecessarily lost and ruined lives.... among other things.
3 posted on 11/24/2025 9:46:06 PM PST by LastDayz (A Blunt and Brazen Texan. I Will Not Be Assimilated.)
To: SeekAndFind
The best decision I made was to join the military so I can use the VA.
4 posted on 11/24/2025 9:53:05 PM PST by roving
To: SeekAndFind
So, it’s about the same percentage as last year’s
I went backwards after the last COLA “raise”
5 posted on 11/24/2025 10:06:41 PM PST by digger48
To: SeekAndFind
Pretty woon it will cost more in premiums than seniors get in their ss checks.
6 posted on 11/24/2025 10:31:56 PM PST by Bob434 (Time flies like an arrow, fruit flies like a banana)
Comment #7 Removed by Moderator
To: SeekAndFind
Blue Cross of MI notified me of my plan being discontinued...only 2nd year on Medicare. Still haven’t found a replacement.
8 posted on 11/24/2025 10:42:47 PM PST by RckyRaCoCo (there are demons out there, and they look like people)
To: SeekAndFind
People who refuse to not draw a direct correlation to the millions brought in by Bidet are fools.
9 posted on 11/24/2025 10:46:56 PM PST by RckyRaCoCo (there are demons out there, and they look like people)
To: SeekAndFind
The Trump Administration should have been working on the new 2026 Medicare issues from Day One in January 2025.
I got completely blind sided by the changes.
I live in Seattle, and Kaiser Permanente stopped offering the policy I had for 10 years.
Educating myself on new policies and new insurers has been one of the most complex problems I have had in my entire life!
The GOP is going to be blamed for every thing - including the new higher costs.
10 posted on 11/24/2025 11:27:08 PM PST by zeestephen
To: SeekAndFind
Wound care?..my guess is most of that is due to these younger people who get on medicare and have horrible cellulitis wounds from them shooting up...usually requires 6 weeks of IV antibiotics.....$$$$$$
11 posted on 11/24/2025 11:47:37 PM PST by cherry
To: RckyRaCoCo
12 posted on 11/25/2025 12:16:05 AM PST by SaveFerris (Luke 17:28 ... as it was in the Days of Lot; They did Eat, They Drank, They Bought, They Sold ......)
To: RckyRaCoCo
Exactly. Everyone has to pay for the “free” healthcare given to illegals. Why should people over 65 be excluded?
EC
13 posted on 11/25/2025 2:56:02 AM PST by Ex-Con777 (Leftists quote the Constitution like an atheist quotes the Bible)
To: SeekAndFind
Medicare beneficiaries
not beneficiary
medicare is a tax
we are forced to purchase something we did not ask for or may not need
14 posted on 11/25/2025 3:10:57 AM PST by SisterK (to do justly, to love mercy and to walk humbly)
To: cherry
Younger people getting on Medicare?? Medicare starts at 65
15 posted on 11/25/2025 3:20:51 AM PST by AppyPappy (They don't call you a Nazi because they think you are one. They do it to justify violence. )
To: SeekAndFind
What isn’t mentioned in the article, is the increase of the standard deduction by $6K for single and $12K for married seniors up until it starts phasing out at $75K and $150K respectively. That should help to absorb additional medical premiums. The increase is good for this year and until after Trump leaves office.
16 posted on 11/25/2025 3:29:47 AM PST by EVO X ( )
To: AppyPappy
Social Security Disability Insurance (SSDI) beneficiaries can get Medicare after 24 months of receiving benefits at any age.
SSDI beneficiaries diagnosed with ALS can get Medicare immediately.
17 posted on 11/25/2025 3:53:38 AM PST by DFG
To: EVO X
When I see the wasted $$$ on ads on TV for stuff, I find a source that doesnt advertise like crazy. I buy aldis not publix. I won’t buy a new car. How the hell do you find a medicare plan that isnt dumping endless $$$ into TV ads?
To: DFG
I thought they got Medicaid
19 posted on 11/25/2025 4:05:38 AM PST by AppyPappy (They don't call you a Nazi because they think you are one. They do it to justify violence. )
To: George from New England
I don’t know, I’ll stick with advantage plan I have until they pullout of the area.
20 posted on 11/25/2025 4:12:51 AM PST by EVO X ( )
Navigation: use the links below to view more comments.
first 1-20, 21-38 next last
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson
