What to Know About the Nearly 10% Rise in a Key Medicare Expense for 2026

Why Part B Premiums Are Jumping

The Centers for Medicare & Medicaid Services (CMS) announced that the 2026 Part B premium will increase by almost 10 % compared with the 2025 rate. This surge mirrors the accelerating pace of health‑care cost growth across the United States, especially in the outpatient sector that Part B primarily covers.

What the Numbers Look Like

For 2025, the standard Part B monthly premium stands at $164.90. The projected 2026 premium will be $180.60, representing a 9.5 % rise. Beneficiaries with higher incomes will see an even larger jump because the income‑related monthly adjustment amount (IRMAA) will be recalculated using the same cost‑growth assumptions.

Driving Forces Behind the Increase

Several factors are fueling the premium hike:

• Medical inflation: The average price of outpatient services, physician visits, and preventive care has been climbing at a rate that outpaces general inflation.
• Advances in technology: New diagnostic tools and treatments, while improving outcomes, often come with higher price tags.
• Policy changes: Recent legislative adjustments have expanded coverage for certain services, adding to overall program expenditures.

How This Affects Retirees

For many retirees, the Part B premium is the single largest monthly out‑of‑pocket health‑care cost. A near‑10 % increase can strain fixed budgets, especially for those who are already balancing prescription drug costs (Part D) and supplemental Medigap plans.

Experts recommend that beneficiaries:

• Review their annual Medicare Statement of Benefits to verify the correct premium amount.
• Consider enrolling in a Medicare Advantage plan if it offers lower overall costs.
• Explore eligibility for the Extra Help program, which can reduce premiums for low‑income seniors.

Looking Ahead

CMS projects that health‑care spending will continue to rise, suggesting that future premium adjustments may remain steep. Keeping an eye on policy developments and staying informed about cost‑saving options will be crucial for anyone relying on Medicare Part B.