Part A, Part B & IRMAA
The 2026 Medicare cost changes bring higher premiums and deductibles for many beneficiaries. The Centers for Medicare and Medicaid Services (CMS) has released the official figures for 2026, and understanding these changes is essential for effective retirement planning.
Medicare Part B Premium Increase 2026
- New Premium: $202.90 per month (up from $185 in 2025).
- Increase: $17.90, or 9.7%.
Impact: This increase is significant, representing the second-largest dollar increase in Medicare history. For those who have Part B premiums automatically deducted from Social Security, this will reduce the benefit of the cost-of-living adjustment (COLA).
Why the Increase?
CMS cites projected price changes and increased utilization of services as the primary drivers.
Medicare Part B Deductible 2026
- New Deductible: $283 (up from $257 in 2025).
- Increase: $26, or 10%.
Impact: Beneficiaries will need to pay more out-of-pocket before Medicare covers doctors’ services, outpatient care, and durable medical equipment.
Medicare Part A Deductible 2026
- New Deductible: $1,736 (up from $1,676 in 2025).
- Increase: $60.
Impact: This applies to beneficiaries requiring hospitalization and covers the first 60 days of inpatient care in a benefit period..
IRMAA: The High-Income Surcharge 2026
Who is Affected?
The Income-Related Monthly Adjustment Amount (IRMAA) surcharge applies to individuals with higher income:
- Single filers and married filing separately: Income over $109,000.
- Married filing jointly: Income over $218,000.
How It Works
IRMAA is based on your modified adjusted gross income from two years prior. For example, your 2026 IRMAA will be based on your 2024 tax return. This can create planning challenges, especially for retirees with one-time income spikes (e.g., from Roth conversions or large retirement account distributions).
Planning Ahead
These changes highlight the importance of strategic retirement planning. If you’re nearing an IRMAA threshold, even a small increase in income could lead to significantly higher premiums.
