Medicare Part B premiums will increase by 9.7 percent in 2026, rising from $185.00 to $202.90 per month. This is over three times the 2.8 percent cost-of-living adjustment (COLA) for Social Security benefits next year.
Because most Medicare premiums are deducted from Social Security payments, this increase will consume about one-third of the average Social Security raise, leaving 64 million Medicare beneficiaries with less disposable income. The premium increase marks the first time Medicare Part B premiums will exceed $200 monthly and causes the largest reduction in COLA due to Medicare since 2017.
Nearly 250 million Americans across all types of health insurance will face premium increases in 2026. These increases will outpace general inflation, wage growth, and Social Security benefit rises, all averaging about 3 percent. Employer-sponsored health insurance costs are expected to rise by 9 percent, the highest jump in 15 years, while premiums for plans purchased through the Affordable Care Act (ACA) marketplace will increase by 26 percent—the largest increase in history for marketplace buyers.
These steep premium hikes are due to several policy factors, including tariffs, federal spending cuts exceeding $1 trillion over ten years, rising drug costs, and the expected expiration of enhanced ACA premium tax credits. This combination of factors will make it harder for families and older adults to afford coverage and cover other living expenses.
Detail Highlights:
Medicare Part B premiums will go up by $17.90 per month on average in 2026. The annual deductible for Medicare Part B will also increase by $26, to $283. These higher costs will reduce the effective Social Security COLA increase from 2.8 to 2.1 percent for many seniors.
The increase in Medicare premiums will surpass projected increases in rent and food costs, putting additional financial strain on older Americans.
States may face budget pressures due to higher Medicare premiums since many Medicaid programs pay for Part B premiums for low-income beneficiaries. This could affect Medicaid coverage and support for hospitals, especially in rural areas.
Employer-sponsored insurance, providing coverage for about 164 million people, will see premiums rise by 9 percent, increasing average family premium contributions by over $600 annually.
The ACA marketplace, covering about 24 million people, will experience the biggest premium hikes in history at 26 percent, while premium tax credits that help lower costs will likely be reduced. This could double out-of-pocket premium costs for marketplace enrollees, severely affecting household budgets.
Overall, 2026 health coverage premium increases driven by policy changes and cost growth will challenge affordability for millions, especially Medicare beneficiaries and families relying on employer or marketplace insurance.
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