Medicare Costs Explained

Here's a complete breakdown of what Medicare costs in 2026.

Part A (hospital): Premium is $0 for most people (if you worked 40+ quarters). Hospital deductible is $1,676 per benefit period. Hospital coinsurance is $419/day on days 61–90. Skilled nursing is $209.50/day on days 21–100.

Part B (medical): Standard premium is $185/month (higher for incomes over $106,000). Annual deductible is $257. Coinsurance is 20% of the Medicare-approved amount after the deductible.

Part D (drugs): Average premium is around $40/month (varies widely by plan). Maximum deductible is $590. And — new this year — annual out-of-pocket costs are capped at $2,000.

Medicare Supplement (Medigap): Premiums vary by plan letter, state, age, and tobacco status. Plan G (the most popular) typically runs $120–$250/month depending on where you live and how old you are.

Medicare Advantage: Many plans have $0 monthly premium. You pay copays as you use services, with annual out-of-pocket maximums that typically range from $3,500 to $8,850.

IRMAA (income-based surcharges): If your income is over $106,000 (single) or $212,000 (married filing jointly), you pay more for Parts B and D. This is based on your tax return from two years ago.