Medicare Part B Premiums: Why They’re Rising in 2026 and How to Offset the Increase

Written by Eleanor Grace

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November 6, 2025

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Medicare | Other Insurance Options

Facing the 2026 Part B Premium Hike

Imagine opening your Medicare statement in early 2026 and seeing your Part B premium jump from $185 to $195 a month—a 5.4% increase that stings, especially on a fixed income. As of October 27, 2025, 03:07 PM EDT, this rise is a hot topic with Open Enrollment (October 15–December 7, 2025) in full swing. Medicare Part B covers essential outpatient care—doctor visits, lab tests, and preventive services—but its costs are climbing due to healthcare inflation and trust fund challenges. Don’t worry; this guide explains why premiums are rising, how income affects your rate, and actionable strategies to offset the increase. Let’s take control of your budget before the December 7 deadline.

Why Are Part B Premiums Rising in 2026?

The standard Medicare Part B premium is projected to increase from $185 in 2025 to approximately $195 in 2026, based on recent Centers for Medicare & Medicaid Services (CMS) estimates. Here’s what’s driving this hike:

Rising Outpatient Costs: Demand for doctor visits, diagnostic tests, and outpatient procedures has surged, pushing up Medicare expenditures. In 2025 alone, Part B spending rose by 6%, a trend expected to continue.
Medicare Trust Fund Pressures: The Hospital Insurance Trust Fund, which supports Part A, faces a projected shortfall by 2028, prompting cost-sharing adjustments across all parts, including Part B.
Inflation and Healthcare Trends: General inflation (projected at 2.5% for 2026) and rising drug costs contribute to the need for higher premiums to maintain coverage.

Income-Based Adjustments (IRMAA): If your income exceeds $103,000 (single) or $206,000 (married filing jointly) in 2024 (used for 2026 rates), you’ll face an Income-Related Monthly Adjustment Amount (IRMAA). For example:

Income $103,000–$129,000 (single): Additional $69.90/month.
Income $129,001–$161,000: Additional $174.70/month.
Top tier (over $500,000): Up to $419.30/month extra.

This means a high earner could pay $614.30/month ($195 + $419.30) for Part B in 2026.

How to Offset the 2026 Premium Increase

The good news? You have options to soften the blow. Here are five strategies to manage or reduce your Part B costs:

Explore Low-Income Assistance ProgramsMedicaid: If your income is below $1,255/month (individual) or $1,701 (couple) in 2025, Medicaid can cover Part B premiums and other costs. Apply through your state’s Medicaid office.
Extra Help: For Part D, this program caps drug costs and may reduce Part B expenses for those under 150% of the federal poverty level (~$22,590 for individuals). Details are at SSA.gov.
Savings: Up to $1,500/year for eligible seniors.
File an IRMAA AppealIf your income dropped in 2024 due to retirement, divorce, or a death in the family, you can appeal your IRMAA. Submit Form SSA-44 with proof (e.g., tax returns, pension statements) to Social Security.
Case Study: Jane, 67, retired in 2024, reducing her income from $120,000 to $60,000. Her appeal lowered her IRMAA from $174.70 to $0, saving $2,096/year.
Deadline: Within 60 days of your IRMAA notice (mailed late 2025).
Optimize Your Medicare PlanSwitching to a Medicare Advantage (Part C) plan with a $0 premium can offset Part B costs, though you’ll still pay $195/month for Part B. Look for plans with low copays or out-of-pocket caps (~$7,550).
Use Medicare.gov’s Plan Finder to compare options by ZIP code.
Savings: $0–$500/year, depending on plan.
Align with Social Security COLAThe 2026 Cost-of-Living Adjustment (COLA) for Social Security is projected at 2.5%, adding ~$40/month to the average benefit ($1,600). Use this to cover the $10 premium increase.
Tip: Budget early—COLA announcements typically come in October (e.g., October 27, 2025, update expected soon).
Reduce Taxable IncomeContribute to a Health Savings Account (HSA) or Roth IRA if eligible, or claim deductions (e.g., medical expenses over 7.5% of income). Lowering your 2024 income (reported in 2025) can reduce 2026 IRMAA.
Savings: Potentially hundreds per month for high earners.

Cost Offset Table:

StrategyPotential SavingsEligibilityMedicaid/Extra HelpUp to $1,500/yearIncome < $22,590 (individual)IRMAA Appeal$0–$5,032/yearIncome drop in 2024Medicare Advantage$0–$500/yearAny enrolleeSocial Security COLA$120/yearAll beneficiariesTax AdjustmentsVariesHigh earners

Source: CMS.gov

A Real-Life Example: Saving with an IRMAA Appeal
Meet Tom, a 69-year-old retiree from Ohio. In 2024, his income dropped from $140,000 to $80,000 after selling his business. His 2026 IRMAA notice added $174.70/month to his Part B premium, pushing it to $359.70. After filing an SSA-44 with his 2024 tax return, Social Security adjusted his rate to the standard $195/month, saving him $1,974.40 annually. Tom now uses the savings to cover copays.

Conclusion: Take Charge of Your Part B Costs

First Wave:

10 drugs in 2026, 15 in 2027, 20 in 2029.

Biggest Saver:

Imbruvica users could save $100,800/year.

Cap Benefit:

3.4 million beneficiaries may save over $1,000 with the $2,000 limit.

Deadline:

Review plans by November 30, 2025, to avoid rush.

Future Hope:

Negotiations could expand to 50+ drugs by 2030.

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Ready for a fresh start?

The 2026 Part B premium increase is a challenge, but with the right strategies—low-income aid, IRMAA appeals, plan optimization, COLA alignment, and tax tweaks—you can keep costs manageable. With Open Enrollment active until December 7, 2025, now’s the time to act. Review your income, explore options, and consult a SHIP counselor at SHIPHelp.org for free advice. Start today with our free Medicare Budgeting Worksheet on DailySeekAdvantage.com, and subscribe to our newsletter for ongoing savings tips. Let’s make 2026 financially easier for you!

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