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November 25, 2025

CMS Releases 2026 Medicare Costs

The Centers for Medicare and Medicaid Services (CMS) recently announced the 2026 Medicare Part A and Part B premiums and deductibles. These are the out-of-pocket amounts that Medicare does not cover and that a beneficiary is responsible for paying.

The Illinois Senior Health Insurance Program (SHIP) has released a helpful  “2026 Basic Medicare Costs” handout that summarizes many of these changes. Click to access a printable version of this chart or contact Illinois SHIP at their website. 

2026 Cost Increases and the "Hold Harmless" Provision

The CMS announcement includes Part A inpatient hospital deductibles and co-pay amounts, skilled nursing facility co-pays, Part A premiums (for individuals who do not have enough work credits to qualify for premium-free Part A), the annual Part B deductible, and the Part B premium amounts for both standard and post-kidney transplant immunosuppressive coverage. These costs are summarized in the Illinois SHIP chart above. Additional information about the 2026 Part B and Part D income related monthly adjustment amounts (IRMAA) for higher earners can also be accessed via the CMS announcement

The Part B premium will be increasing $17.90 over 2025 costs, the second-largest increase in program history. This is a 9.7% increase versus the 2.8% increase in the Social Security Administration (SSA)'s Cost of Living Adjustment (COLA) for 2026. Professionals working with Medicare beneficiaries should take note of the "Hold Harmless" provision, which dictates that certain beneficiaries must not experience a decrease in their Social Security payment due to a Medicare Part B premium increase. In other words, if their COLA adjustment is not large enough to cover the Part B premium increase, they will not be charged the full Part B amount. 

To be held harmless, individuals must:

• Be receiving Social Security benefits or be entitled to Social Security benefits in November and December of 2025.
• Have had November and December Part B premiums directly deducted from their monthly benefits.  

Additionally, individuals are not eligible to be held harmless if: 

• They pay an income-related monthly adjustment amount premium.
• They are dually eligible for Medicaid and the state pays their Part B premium. 

Click here for further information from SSA about the hold harmless provision.   

If you have questions or need help counseling older adults and adults with disabilities on Medicare, Medicaid, or other health benefits programs, reach out to Avisery's "Ask the Expert" service for professionals at

avisery@ageoptions.org or 708-628-3440

About Avisery

Avisery by AgeOptions provides tools and support to professionals serving older adults and people with disabilities, enabling them to help their clients access healthcare coverage that allows them to thrive as they age. 

Contact us at avisery@ageoptions.org or visit our website for more information.

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