What Is Medicare?
Medicare is the federal health insurance program for Americans aged 65 and older, as well as certain younger individuals with disabilities or end-stage renal disease. It consists of four parts:
- Part A (Hospital Insurance): Covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health care. Most people pay no premium for Part A if they or their spouse paid Medicare taxes for at least 40 quarters.
- Part B (Medical Insurance): Covers doctor visits, outpatient care, preventive services, and medical equipment. Part B requires a monthly premium.
- Part C (Medicare Advantage): Private insurance plans that bundle Part A and Part B coverage, often including prescription drug coverage and extra benefits like dental and vision.
- Part D (Prescription Drug Coverage): Covers prescription medications through private plans. Premiums vary by plan, and higher-income beneficiaries pay an additional IRMAA surcharge.
2026 Part B Premiums & IRMAA Surcharges
Most Medicare beneficiaries pay the standard Part B premium. However, if your modified adjusted gross income (MAGI) exceeds certain thresholds, you will pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of the standard premium.
| Single MAGI | MFJ MAGI | Monthly Premium |
|---|---|---|
| $106,000 or less | $212,000 or less | $185.00 |
| $106,001 – $133,000 | $212,001 – $266,000 | $259.00 |
| $133,001 – $167,000 | $266,001 – $334,000 | $370.00 |
| $167,001 – $200,000 | $334,001 – $400,000 | $480.90 |
| $200,001 – $500,000 | $400,001 – $750,000 | $591.90 |
| Above $500,000 | Above $750,000 | $628.90 |
The Part B annual deductible for 2026 is $257. After you meet this deductible, you typically pay 20% of the Medicare-approved amount for most services.
2026 Part A Costs
Most beneficiaries do not pay a Part A premium, but Part A does have deductibles and coinsurance for hospital stays:
| Cost Type | 2026 Amount |
|---|---|
| Hospital deductible (per benefit period) | $1,676 |
| Days 1–60 coinsurance | $0/day |
| Days 61–90 coinsurance | $419/day |
| Lifetime reserve days (91–150) coinsurance | $838/day |
| Beyond 150 days | All costs (patient responsibility) |
A benefit period begins when you are admitted to a hospital and ends when you have been out of the hospital or skilled nursing facility for 60 consecutive days. There is no limit on the number of benefit periods, but you pay the deductible each time a new period begins.
2026 Part D IRMAA Surcharges
In addition to Part B surcharges, higher-income beneficiaries also pay extra for Part D prescription drug coverage. The Part D IRMAA surcharge is added on top of your plan's regular premium:
| Single MAGI | MFJ MAGI | Part D Surcharge |
|---|---|---|
| $106,000 or less | $212,000 or less | $0.00 (plan premium only) |
| $106,001 – $133,000 | $212,001 – $266,000 | $13.70 |
| $133,001 – $167,000 | $266,001 – $334,000 | $35.30 |
| $167,001 – $200,000 | $334,001 – $400,000 | $57.00 |
| $200,001 – $500,000 | $400,001 – $750,000 | $78.60 |
| Above $500,000 | Above $750,000 | $85.80 |
How IRMAA Is Calculated
IRMAA is determined by the Social Security Administration (SSA) using your modified adjusted gross income from your IRS tax return two years prior. For 2026 Medicare premiums, your 2024 tax return is used.
Your MAGI for IRMAA purposes includes your adjusted gross income (AGI) plus any tax-exempt interest income (such as municipal bond interest). This figure is reported on your IRS Form 1040.
Life-Changing Events
If your income has dropped significantly since 2024 due to a qualifying life-changing event, you can request a reduction by filing Form SSA-44 with the Social Security Administration. Qualifying events include:
- Marriage, divorce, or death of a spouse
- Work stoppage or work reduction
- Loss of income-producing property
- Loss of pension income
- Employer settlement payment
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What is the standard Medicare Part B premium for 2026?
The standard Medicare Part B monthly premium for 2026 is $185.00. This is the amount most beneficiaries pay, and it is typically deducted directly from your Social Security benefit each month.
What is IRMAA and how does it affect my Medicare premiums?
IRMAA (Income-Related Monthly Adjustment Amount) is an extra charge added to your Medicare Part B and Part D premiums if your income exceeds certain thresholds. For 2026, the surcharge is based on your 2024 tax return. At the highest tier (single MAGI above $500,000), the Part B premium can reach $628.90 per month.
What is the Medicare Part A deductible for 2026?
The 2026 Medicare Part A hospital deductible is $1,676 per benefit period. You pay this amount each time you are admitted to a hospital. After the deductible, Medicare covers days 1 through 60 at no daily coinsurance cost. Days 61–90 have a $419/day coinsurance, and lifetime reserve days (91–150) cost $838/day.
Can I appeal my IRMAA surcharge if my income has decreased?
Yes. If you have experienced a qualifying life-changing event (such as retirement, divorce, death of a spouse, or significant income reduction), you can file Form SSA-44 with the Social Security Administration to request that your IRMAA be recalculated based on your more recent, lower income rather than the two-year-old tax return.