Money guide · 2026 Medicare

What does
Medicare cost?

Part B alone is $174.70/month in 2026 — and high earners pay up to 3.6x more through IRMAA. Here is the complete 2026 price sheet and the levers you control.

From $174.70/mo IRMAA up to $628/mo Free IRMAA calculator
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Part 1 · The basics

Medicare has four parts, four price tags

Part A (hospital) is usually free if you paid Medicare taxes ~10 years. Part B (doctors) costs $174.70/month in 2026 — more if your income is high. Part D (drugs) averages $36.78/month. Medigap (supplement) runs $100–350/month.

The number nobody explains: IRMAA (Income-Related Monthly Adjustment Amount). Above certain income thresholds, your Part B and Part D premiums jump by 40–260%. That surcharge is avoidable with planning.

Part B premium

$174.70/month for most, $259–628 for high earners via IRMAA. Based on your tax return from 2 years ago.

Deductibles

Part A: $1,676 per hospital stay. Part B: $257 per year. Part D plans have their own deductibles.

Medigap & Part D

Supplements fill Part B gaps ($100–350/mo). Part D drug plans average $36.78/mo — pick during open enrollment.

The IRMAA surprise : Your 2026 premium is based on your 2024 tax return. One big income year (RMD, home sale, Roth conversion) can trigger 2 years of surcharges — but you can appeal with form SSA-44 if the income was one-time.

$174.70
Part B standard premium (2026)
per month
$628.10
Top IRMAA bracket (single)
3.6x the standard rate
$1,676
Part A inpatient deductible
per benefit period
$36.78
Part D base premium
per month, plus plan cost
Part 2 · How it works

How to keep Medicare cheap

Five levers that work regardless of your health situation.

  1. 1

    Time Part A correctly

    Enroll when you turn 65 or when employer coverage ends. Late enrollment adds a 10% Part B penalty for each 12 months missed — forever.

  2. 2

    Avoid the late-enrollment penalty

    The Part B penalty is 10% per full year late, added to your premium for life. Enroll within 8 months of losing employer coverage.

  3. 3

    Manage income before age 65

    Your IRMAA is set by income two years prior. Plan Roth conversions and RMDs with that 2-year lag in mind.

  4. 4

    Compare Part D each October

    Drug plans change yearly. Switching during open enrollment (Oct 15–Dec 7) can save $300+/year on premiums and your drugs.

  5. 5

    Decide Medigap vs Medicare Advantage

    Medigap costs more monthly but covers most out-of-pocket. Advantage plans have lower premiums but network limits. Choose based on health and budget.

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Comparison

Medicare 2026 price sheet

The official numbers, at a glance.

Item 2026 cost When you pay it
Part A (hospital) — premium $0 for most Monthly, if free
Part A — inpatient deductible $1,676 Per benefit period
Part B (doctors) — standard premium $174.70 / mo Monthly
Part B — annual deductible $257 Once a year
Part D — base premium $36.78 / mo avg Monthly
Medigap — typical $100–350 / mo Monthly
Part B IRMAA (high income) $259 – $628.10 / mo Monthly
In detail

The five Medicare decisions

Each choice affects what you pay for years.

Enroll on time

  • Initial window: 3 months before 65 to 3 months after
  • Missing it adds a lifetime Part B penalty
  • Special enrollment protects you with employer coverage

Medigap

  • Private supplement that fills Part B gaps
  • Guaranteed-issue window in the first 6 months
  • Best for predictable, higher premiums

Medicare Advantage

  • All-in-one Part C plans with networks
  • Lower premiums, more out-of-pocket risk
  • Check your doctors are in-network

Part D plans

  • Drug coverage with plan-specific formularies
  • Re-check every October — plans change
  • Use the Plan Finder to compare real costs
Interactive

Part B premium & IRMAA calculator

Enter your modified adjusted gross income (MAGI) to see your real 2026 Part B premium. Single-filer brackets shown.

Estimates only, based on your inputs.

Your situation

What applies to you

Your situation decides the strategy.

Turning 65 this year

Enroll in the initial window — missing it means a 10%-per-year Part B penalty for life.

High income

Plan around IRMAA. If last year’s income spiked once, file form SSA-44 to appeal the surcharge.

Still working at 65

You can delay Part B if you have employer coverage — enroll within 8 months of leaving without penalty.

Couple

IRMAA brackets are nearly double for married filing jointly. Compare both incomes before conversions.

On a low income

Check Extra Help (Part D) and Medicare Savings Programs — they can cover premiums and deductibles.

Frequent traveler

Medigap works nationwide; Medicare Advantage networks may not cover you abroad or out of state.

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Pros & cons

Ways to lower costs & Cost traps

Ways to lower costs

  • Delay Part B penalty-free while you have employer coverage.
  • Appeal IRMAA with SSA-44 after a one-time income event.
  • Compare Part D every October — plans repricing is common.
  • Qualify for Extra Help or Medicare Savings Programs if income is low.

Cost traps

  • Late enrollment penalties that never go away.
  • IRMAA surcharges from a single high-income year.
  • Picking a Medigap plan after the guaranteed-issue window (medical underwriting).
Glossary

Medicare terms decoded

The acronym soup, in plain language.

Part A
Hospital insurance. Usually premium-free if you paid Medicare taxes for about 10 years.
Part B
Medical insurance for doctors and outpatient care. $174.70/month in 2026, plus possible IRMAA.
Part C (Advantage)
A private all-in-one plan replacing A + B, often with extra benefits and networks.
Part D
Prescription drug coverage from private plans, average base premium $36.78/month.
IRMAA
Income-Related Monthly Adjustment Amount — a surcharge on Part B and D premiums for higher earners.
Medigap
A private supplement that covers Part B coinsurance, deductibles and more.
SSA-44
The form used to appeal an IRMAA surcharge after a life-changing or one-time income event.
RMD
Required Minimum Distributions from retirement accounts — a common trigger of IRMAA.
FAQ

Medicare cost FAQ

How much does Medicare cost per month?
Most retirees pay $174.70/month for Part B (2026) plus $36.78/month average for Part D and $100–350 for Medigap. Part A is free for most. High earners pay Part B surcharges up to $628.10/month.
What is IRMAA and who pays it?
IRMAA is a surcharge added to Part B and Part D premiums when your income exceeds thresholds. For singles it starts above $106,000 MAGI, adding $84+/month to Part B alone.
How is my Medicare premium based on income?
It uses your tax return from two years prior (2024 income for 2026). If income rises from a one-time event, you can appeal using form SSA-44.
Is Medigap worth the cost?
For people with chronic needs, yes — it caps your out-of-pocket. For the healthy, a Medigap plan can cost $1,200–4,200/year for coverage you may rarely use.
What is the Medicare late-enrollment penalty?
A 10% Part B surcharge for every full 12 months you were eligible but not enrolled, added to your premium for life. Part D has a similar penalty. Enroll on time.
Can I change Medicare plans?
Yes. Open enrollment (Oct 15–Dec 7) lets you switch Part D and Medicare Advantage. Medigap plans can be changed, but after the guaranteed-issue window you may face underwriting.
Is Medicare free?
Part A is free for most who worked ~10 years. Parts B, D and Medigap are not free — the total package typically runs $350–700/month per person.
Do I need Medicare if I have employer insurance?
Not necessarily. You can delay Part B without penalty if you have credible employer coverage, then enroll within 8 months of leaving.

2026 premiums and IRMAA thresholds are indicative and based on published Medicare figures. This guide is educational, not legal or benefits advice.

Related tools

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Model your real Medicare costs

Use the IRMAA calculator above, then plan with a full retirement projection.

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