The Centers for Medicare and Medicaid Services (CMS) has revealed next year’s costs for premiums, deductibles, and copayments for Medicare Parts A and B, and the only direction for beneficiaries is higher.

Medicare Part A covers inpatient hospital, skilled nursing facility, hospice, inpatient rehabilitation, and a number of home health care services. Approximately 99 percent of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment, as determined by the Social Security Administration. 

Nonetheless, CMS said the Medicare Part A inpatient hospital deductible that beneficiaries pay if admitted to the hospital will be $1,736 in 2026, an increase of $60 from $1,676 in 2025. Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.

In 2026, beneficiaries must pay a coinsurance amount of $434 per day for the 61^st through 90^th day of a hospitalization ($419 in 2025) in a benefit period and $868 per day for lifetime reserve days ($838 in 2025). For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $217.00 in 2026 ($209.50 in 2025). 

For Part B, the standard monthly premium will be $202.90 in 2026, an increase of $17.90 from the 2025 premium of $185.00. The annual deductible will rise to $283, an increase of $26 from the Part B 2025 deductible of $257. CMS said higher utilization is helping to drive the higher costs.

Medicare Part B covers physicians’ services, outpatient hospital services, certain home health services, durable medical equipment, and other medical and health services not covered by Part A.

Read the complete CMS announcement at https://tinyurl.com/3dwuke2p.

Questions or comments? Please contact Patrick Connole at pconnole@parkplacelive.com.