The 2021 Medicare Part B annual deductible was $203. This was an increase of $5 from the 2020 deductible of $198. Additionally, the standard monthly premium for Medicare Part B in 2021 was $148.50.
Medicare Part B Premiums/Deductibles
The standard monthly premium for Medicare Part B enrollees will be $148.50 for 2021, an increase of $3.90 from $144.60 in 2020. The annual deductible for all Medicare Part B beneficiaries is $203 in 2021, an increase of $5 from the annual deductible of $198 in 2020.
The Medicare Part B deductible for 2025 is $257, an increase from the 2024 amount, and must be met once per calendar year before Medicare starts paying its share of covered outpatient costs, like doctor visits and lab tests, with most beneficiaries paying a standard monthly premium of $185.
Medicare B — This is supplemental insurance, and you can include it. Medicare Part D — This is voluntary insurance and it's always includable.
The standard monthly premium for Medicare Part B enrollees will be $202.90 for 2026, an increase of $17.90 from $185.00 in 2025. The annual deductible for all Medicare Part B beneficiaries will be $283 in 2026, an increase of $26 from the annual deductible of $257 in 2025.
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.
The IRA introduced significant changes to the Medicare prescription drug benefit as well as the inclusion of price-set medicines starting in 2026. As plans adapt to these changes, it's creating a lot of disruption for patients, many of whom are facing higher premiums, higher out-of-pocket costs and restricted options.
Here are some of the biggest Medicare mistakes to avoid:
Yes, health insurance premiums can be tax deductible, but it depends on how you get coverage: self-employed individuals can deduct 100% of premiums as an "above-the-line" deduction, reducing AGI; employees typically pay with pre-tax dollars, so they can't deduct premiums directly but might deduct other medical costs if they itemize and exceed 7.5% of AGI; and others paying out-of-pocket (like for COBRA) can deduct premiums as itemized deductions if they meet the 7.5% AGI threshold.
The monthly Part B premiums that include income-related adjustments for 2021 will range from $207.90 to $504.90, depending on the extent to which an individual beneficiary's modified adjusted gross income exceeds $88,000 (or $176,000 for a married couple).
Yes—the deductible is the annual amount you pay for covered services before Medicare starts to pay. CMS has released the 2026 Medicare Part A deductible ($1,736) and Part B deductible ($283). Medicare Advantage (Part C) and prescription drug coverage (Part D) may also have deductibles, but they vary from plan to plan.
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.
The extra $144 added to Social Security usually comes from the Medicare Part B Giveback benefit, offered by some Medicare Advantage (Part C) plans, which pays back some or all your Part B premium, showing up as extra money in your check if it's deducted from your Social Security. To qualify, you need Original Medicare (Parts A & B), pay your own Part B premium, live in a plan's service area, and enroll in a specific Medicare Advantage plan that offers this "rebate," with the amount varying by plan and location.
For the average retired worker, the 2.8 percent COLA is expected to increase their monthly benefit by about $56. This will raise the average payment from approximately $2,008 in 2025 to about $2,064 in 2026. Social Security retirement beneficiaries will see this increase reflected in their January 2026 payments.
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.
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.
Medigap Premium Increases
Attained-Age plans typically experience premium increases as the policyholder gets older, while Issue-Age plans may experience premium increases due to inflation and other factors. Community-Rated plans may also experience premium increases due to inflation, but not due to age.
The annual deductible for all Medicare Part B enrollees in 2026 will be $283, an increase of $26 from the 2025 deductible of $257. The increases are due to changes in both pricing and utilization that are consistent with historical trends.
Your deductible is the amount you pay for covered services (like doctor visits or hospital stays) before your health insurance starts to pay, found in your policy documents (like your insurance card or online portal) and varies by plan, but generally, you pay 100% of costs until you hit that number, then often pay a percentage (coinsurance) or fixed fee (copay) until your out-of-pocket max is met.