Your Medicare Part B premium is calculated using your Modified Adjusted Gross Income (MAGI) from your tax return two years prior, with higher incomes leading to higher premiums (IRMAA), while most people pay a standard amount; the Social Security Administration uses IRS data to determine your rate, which adjusts annually. The standard premium covers those with MAGI below a certain threshold (e.g., $109k for individuals, $218k for joint filers in 2026), with higher brackets paying an extra Income-Related Monthly Adjustment Amount (IRMAA).
The standard monthly premium for Medicare Part B in 2026 is $202.90, an increase from the 2025 premium, though some people pay less due to the "hold harmless" rule, while higher-income earners pay more through an Income-Related Monthly Adjustment Amount (IRMAA). This premium covers medical insurance, with the exact amount depending on your income and when you enroll.
Determining the premium for Medicare Part B can be tricky, as it is based on your modified adjusted gross income (MAGI). The Social Security office will pull your IRS tax return from two years prior. They use that tax return to determine what you'll pay for Parts B & D (Part D premiums are also based on income).
If you file your taxes as "married, filing jointly" and your MAGI is greater than $218,000, you'll pay higher premiums for your Part B and Medicare prescription drug coverage. If you file your taxes using a different status, and your MAGI is greater than $109,000, you'll pay higher premiums.
For 2026, the standard Medicare Part B monthly premium is $202.90, but higher earners pay more based on their income, with some paying significantly more, while there's also a $283 annual deductible before Original Medicare starts paying, and most people pay 20% coinsurance for covered services after the deductible.
You can reduce your Medicare Part B premium by applying for Medicare Savings Programs (MSPs) if you have low income, filing Form SSA-44 (Request for Reconsideration) for income drops after a life event (like retirement), or enrolling in a Medicare Advantage plan with a Part B "giveback" benefit. For those with higher incomes, using a Health Savings Account (HSA) or Qualified Charitable Distributions (QCDs) from an IRA can help lower the income used for premium calculations, say financial experts and CNBC.
In 2025, the standard Medicare Part B premium is $185 per month, with an annual deductible of $257, though higher-income earners pay more (Income-Related Monthly Adjustment Amount or IRMAA), and some with Social Security benefits pay less due to the "hold harmless" rule.
Here are some of the biggest Medicare mistakes to avoid:
The Income Related Monthly Adjustment Amount (IRMAA) is an additional fee you may have to pay on Medicare Part B and Part D if you earn above a certain income level. When this fee applies to you for Part D, this fee will be charged to you monthly, and you must pay it directly to Medicare.
As of November 2023, the income limits for free Part B coverage are as follows: Individuals with an income at or below 135% of the FPL: Individuals whose income falls at or below this threshold may qualify for free Part B coverage. As of now, the income limit for an individual is $1,640 per month or $19,683 per year.
Through your secure Medicare account: Select “Pay my premium” to make a payment by credit card, debit card, Health Savings Account (HSA) card, or from your checking or savings account. Our service is free, and this is the fastest way to pay your premium.
If you can't afford Medicare Part B, you should immediately contact your State Medical Assistance (Medicaid) office to apply for a Medicare Savings Program (MSP), which can pay your Part B premiums and other costs if you have low income/resources, or explore options like Supplemental Security Income (SSI), or even look into Medicaid itself for comprehensive help, as delaying Part B can lead to lifetime penalties.
For 2026, the standard Medicare Part B premium deducted from most Social Security checks is $202.90 per month, with higher premiums for higher incomes and a separate annual deductible of $283; some beneficiaries pay less due to the hold harmless rule. Your exact amount depends on your income from two years prior, and you'll also pay 20% coinsurance for most services after meeting the deductible.
You can avoid paying Medicare Part B premiums by delaying enrollment if you have creditable employer coverage (your own or spouse's job with 20+ employees) until that coverage ends (within 8 months to avoid penalties), or by qualifying for a Medicare Savings Program (MSP) to have state/federal funds pay for it due to low income. Other ways to save include using HSA funds, appealing high Income-Related Monthly Adjustment Amounts (IRMAA) for life changes, or enrolling on time during your Initial Enrollment Period.
The projected jump to a $206.50 monthly Medicare Part B premium for 2026 reflects a significant 11.6% increase from 2025, driven by rising healthcare costs and utilization, though the official figure set by CMS was slightly lower at $202.90, impacting Social Security recipients by consuming much of their Cost-of-Living Adjustment (COLA) and increasing the annual deductible to $283, with higher earners paying more due to Income-Related Monthly Adjustment Amounts (IRMAA).
To get money back on your Medicare, you need to enroll in a Medicare Advantage (Part C) plan that offers a Part B premium reduction (the "$144 back" benefit), meaning you must be in Original Medicare (Parts A & B), pay your own Part B premium (not covered by Medicaid), and live in the plan's service area; the money is then returned as a credit on your Social Security check or a lower bill, effectively lowering your premium.
Your CalPERS health coverage will automatically be canceled the first day of the month after you turn 65. Review Cancellation of CalPERS Health Coverage for information on reinstating your health coverage.
Yes, Medicare Part B premiums are tax-deductible as a medical expense if you itemize your deductions and your total qualified medical expenses exceed 7.5% of your Adjusted Gross Income (AGI); this applies to self-employed individuals as a business expense (above-the-line) and to others as a medical expense (itemized). Self-employed individuals can deduct Part B premiums for themselves and their spouses as a business expense, reducing their AGI directly, while others must itemize deductions and meet the AGI threshold to deduct them as a medical expense.
2 ways to drop coverage
To drop Part B (or Part A if you have to pay a premium for it), you usually need to send your request in writing and include your signature. Contact Social Security.
Another cause for the rising Part B costs is a shift in health care delivery from hospitals to outpatient settings. More care and medications are being delivered in these settings, Dr. Neuman said. The growth of Medicare Advantage plans — which now account for more than half of total enrollment — plays a role as well.
Most people pay the standard Part B monthly premium amount ($202.90 in 2026). Social Security will tell you the exact amount you'll pay for Part B in 2026. You pay the standard premium amount if you: Sign up for Part B for the first time in 2026.