Posted by Medicare Open Enrollment is October 15 – December 7 and they just announced the 2nd largest rate increase in history. The Medicare Part B premium for 2026 will be $202.90 per month, an increase of $17.90 from 2025. That is a 9.7% increase from the previous year while the Social Security cost of living increase was only 2.8%. The highest increase was $21.60 per month back in 2022. The annual deductible for all Medicare Part B beneficiaries will be $283 in 2026, an increase of $26. In 2021 the standard monthly premium was $148.50, and the deductible was $203. That is an increase of 36.63% in five years, or 7.33% per year.
At this rate, the monthly premium will be $233.74 in 2028. By 2038 it will be $474.17 and by 2048 it will be $961.94. Unless something changes, the premium will basically double every ten years. This doesn’t seem like a sustainable plan. The Social Security cost of living increase is consumed by the annual Medicare premium and deductible increase. It doesn’t account for the increase in the price of everything else. The average monthly Social Security benefit for retired workers in 2025 was about $2000. For disabled workers the average monthly benefit is $1580. Deduct the cost of Medicare and the amount received in 2026 will be $1797 and $1377.
I was looking forward to using Social Security to live a more comfortable life after my early retirement phase. But it now looks like my Social Security benefit will now have to be used to fund my health care. At least a larger portion than I had originally planned. It might be a good idea to put a portion into a health care saving account, just to pay the deductibles and co-pays that Medicare doesn’t cover. Unfortunately, current law says that you cannot contribute to an HSA after enrolling in Medicare. You can work past age 65 and remain on an employer’s group health plan and continue to make HSA contributions as long as you do not enroll in Medicare. But they don’t want people using a tax-free account to pay for medical expenses after they apply for Medicare.