Home » News & Events » What to Know about Rising Medicare Premiums
by Rachel Goldberg, JCA Senior Director, Center for Information Services
Your Medicare costs will probably be going up next year, as the Centers for Medicare and Medicaid Services (CMS) announced in the most recent Medicare Part B premium hike last week. If you have Medicare, you probably pay a monthly Part B premium (often deducted from your Social Security check) and have a small deductible each year for doctor’s office visits. Medicare Part B covers outpatient services.
The recently announced increase in Part B premiums has people talking. The new rate of $202.90 is 10 % higher than last year’s rate of $185. (Premiums are even higher for people with incomes of $109,000 or more annually, with a premium of at least $284. They rise again at higher intervals.) Those taking their social security benefits will usually see the premium deducted from their monthly deposit.
The big problem is that the Part B premium is rising faster than inflation because it is tied to rising health care costs, not the economy at large. Social Security benefits are expected to go up only 3% which is intended to match inflation of everyday goods. Moreover, the index used to calculate the cost-of-living adjustment (COLA) rate doesn’t accurately reflect the spending needs of older adults. Many advocates for Medicare beneficiaries want that formula to change.
This increase may make some people wonder if a Medicare Part C (known as a Medicare Advantage plan, which covers Parts A and B and usually D as well) is a better choice because these often have lower premiums and cost-sharing. However, there are many plans to choose from, and making a decision often requires individualized advice. This is where SHIP (State Health Insurance Assistance Program) comes in.
Open enrollment ends December 7th. Call SHIP today at 301-255-4520 for answers to your Medicare questions.
*Some low-income beneficiaries are eligible for help with paying their Medicare premiums. If you think you might fall into that category, please call our Medicare helpline (SHIP) at 301-255-4250.
For more on all rising Medicare costs, see: 2026 Medicare Parts A & B Premiums and Deductibles | CMS.
