1-800-380-6821 | English & Spanish
WhatsApp Schedule Free Consultation →
EN ES

Medicare Costs 2026:
Premiums, Deductibles & IRMAA Explained.

Every dollar you'll pay for Parts A, B, C, and D — plus the income surcharge most people don't see coming until it's too late.

What you actually pay for Medicare

Medicare isn't free — but for most people it costs far less than private insurance. The trick is understanding which costs apply to your situation, because everyone's bill looks different depending on income, the plan you choose, and whether you qualify for assistance programs.

Here's a complete breakdown of every cost you might encounter in 2026.

What is IRMAA?

IRMAA stands for Income-Related Monthly Adjustment Amount. It's a surcharge added to your Part B and Part D premiums if your income exceeds certain thresholds — and it catches a lot of people off guard.

Social Security uses your tax return from 2 years prior to determine if you owe IRMAA. So your 2026 IRMAA is based on your 2024 income. If you retired recently or had a one-time income spike (like selling a home), you may be paying IRMAA based on income that no longer reflects your current situation — and you can appeal it.

Just retired? Your IRMAA may be based on old income.

If you retired in 2024 or 2025, Social Security is still looking at your 2024 income for your 2026 premium. You can file a Life-Changing Event appeal to use your current, lower income instead. Call us and we'll walk you through it.

2026 costs by Medicare part

Each part of Medicare has its own premiums, deductibles, and copays. Here's what to expect:

A
Hospital Insurance
Monthly premium$0 (most people)
Deductible per benefit period$1,676
Days 1–60 copay$0
Days 61–90 copay$419/day
Lifetime reserve days$838/day
Skilled nursing days 21–100$209.50/day
B
Medical Insurance
Standard monthly premium$185.00
Annual deductible$257
Coinsurance after deductible20%
Outpatient mental health20%
Clinical lab tests$0
Preventive services$0
C
Medicare Advantage
Premium range$0–$200+/mo
Many South FL plans$0 premium
In-network OOP maxUp to $9,350
OOP max requiredYes — by law
Copays/coinsurancePlan-specific
Drug coverage includedUsually yes
D
Prescription Drug
Monthly premiumVaries by plan
Max deductible$590
Annual OOP cap$2,000
CopaysTier-based
Generic drugsOften $0–$5
Extra Help availableYes — income-based
The 20% gap — Medicare's biggest cost surprise

Part B only covers 80% of approved outpatient costs after your deductible. There is no out-of-pocket maximum on Original Medicare — meaning a major illness could cost you tens of thousands. This is why many people add a Medicare Supplement (Medigap) plan or choose Medicare Advantage, which does have an annual OOP cap.

2026 IRMAA brackets — Part B

IRMAA is tiered — the more you earn, the higher the surcharge. Here are the 2026 thresholds based on your 2024 tax return:

Tier 1 — Standard
Individual: ≤$106,000
Joint: ≤$212,000
$185.00/mo
No surcharge
Tier 2
Individual: $106,001–$133,000
Joint: $212,001–$266,000
$259.00/mo
+$74.00/mo surcharge
Tier 3
Individual: $133,001–$167,000
Joint: $266,001–$334,000
$370.00/mo
+$185.00/mo surcharge
Tier 4
Individual: $167,001–$200,000
Joint: $334,001–$400,000
$481.00/mo
+$296.00/mo surcharge
Tier 5
Individual: $200,001–$500,000
Joint: $400,001–$750,000
$592.00/mo
+$407.00/mo surcharge
Tier 6 — Highest
Individual: above $500,000
Joint: above $750,000
$628.90/mo
+$443.90/mo surcharge
Part D IRMAA works the same way

Your Part D drug plan also carries IRMAA surcharges based on the same income brackets — ranging from $13.70/month at Tier 2 up to $85.80/month at Tier 6 in 2026.

Calculate your exact IRMAA surcharge: Use our free IRMAA calculator to see exactly what you’ll pay based on your income.

How to appeal your IRMAA

If your income has dropped significantly since the tax year Social Security used to calculate your IRMAA, you have the right to appeal using a Life-Changing Event (LCE) appeal — Form SSA-44.

Qualifying life event What it means
Retirement or reduced hoursYou or your spouse stopped working or significantly cut back hours
Death of spouseFiling status changed from joint to single
Divorce or annulmentMarital status changed, affecting your tax filing
MarriageCombined income situation changed
Loss of pension incomePension reduced or stopped due to termination or bankruptcy
Loss of income-producing propertyDisaster, fraud, or other event destroyed income-generating property
Employer settlement paymentOne-time income that inflated your prior year's return

File Form SSA-44 with your local Social Security office with documentation of the event and your current income estimate. Our brokers can point you in the right direction — call us at 1-800-380-6821.

6 ways to lower your Medicare costs

There are more options than most people realize. Here are the most effective ones:

🏥
Choose Medicare Advantage
Many plans in South Florida have $0 premiums and include an annual out-of-pocket maximum — capping your total exposure no matter what happens.
💵
Medicare Savings Program
If your income is limited, Florida's MSP can pay your Part B premium, deductible, and copays — saving up to $2,220/year. See if you qualify →
💊
Apply for Extra Help (LIS)
The Low Income Subsidy program can reduce your Part D premiums and copays dramatically — sometimes to $0. Income limits are higher than most people expect.
📋
Appeal your IRMAA
If your income dropped due to retirement, divorce, or another life event, file a Life-Changing Event appeal to lower your surcharge immediately.
🔍
Compare Part D plans annually
Drug plan formularies and costs change every year. Reviewing your Part D plan during AEP (Oct 15–Dec 7) can save hundreds on your prescriptions.
🎁
Give-Back plans
Some Medicare Advantage plans in Florida pay part of your Part B premium for you. Ask us which plans offer this in your ZIP code.

Explore more Medicare guides

Now that you understand the costs, here are the most useful next steps:

Want help lowering your Medicare costs?

Our licensed Miami brokers know every savings program and plan option available in Florida. Free consultation, no pressure.