Medicare provides health coverage for millions of older Americans today. But one of the biggest Medicare myths out there is that the coverage is free.
Not only are there costs associated with Medicare, but those costs also tend to rise from year to year. And 2026 is no exception. Here are three reasons you may not love being a Medicare enrollee this year.
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Medicare Part B covers outpatient care, and there’s a monthly premium all enrollees have to pay. This holds true even if you sign up for a Medicare Advantage plan.
In 2025, the standard monthly Medicare Part B premium was $185, but this year, it’s $202.90. Not only is that a notable year-over-year increase, but it’s also apt to erode this year’s 2.8% Social Security cost-of-living adjustment substantially since Part B premiums are paid out of those monthly benefits directly.
Medicare Part A, which covers hospital care, generally does not require that enrollees pay a premium. But there’s a hefty deductible associated with hospital admissions.
Last year, that deductible was $1,676. This year, it’s up to $1,736.
Your Medicare Part A inpatient hospital deductible may not be the only cost you face during your stay. If you’re admitted to the hospital beyond 60 days, you’ll have to pay coinsurance on a daily basis.
Last year, the coinsurance rate for days 61 through 90 of a hospital stay was $419 per day. This year, it’s $434.
Beyond your 90th day in the hospital, you have to use your lifetime reserve days, and there’s a daily cost there, too. In 2025, it was $838 per day, but this year, it’s $868.
Unfortunately, Medicare costs can rise pretty substantially from one year to the next. So, it’s important to do what you can to minimize your out-of-pocket spending in general.
To that end, here are some things to do:
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Find out if you’re able to get an affordable Medigap plan if you don’t have one already.
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Review your Medicare Advantage or Part D drug plan choices every year during fall open enrollment.
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Stick to in-network providers whenever possible.
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Take advantage of low- or no-cost preventive care to get ahead of health issues before they become more expensive to treat.
It’s not surprising that Medicare costs are up this year. But that might create a hardship for you. So, it’s important to understand your coverage fully and find ways to lower your out-of-pocket costs.