Medicare Supplement Premiums Increasing by Double Digits in 2025. Many seniors across the country are experiencing sticker shock in 2025 as premiums for Medicare Supplement (Medigap) plans rise.
The standard monthly premium for Medicare Part B enrollees will be $185.00 for 2025, an increase of $10.30 from $174.70 in 2024. The annual deductible for all Medicare Part B beneficiaries will be $257 in 2025, an increase of $17 from the annual deductible of $240 in 2024.
The standard monthly premium for Medicare Part B will be $202.90 a month for 2026, an increase of $17.90 from $185.00 in 2025. The Medicare Part B deductible, or the amount beneficiaries must pay out of pocket before coverage begins, will be $283 in 2026, an increase of $26 from 2025.
Starting in 2025, there is an annual limit on what you pay out-of-pocket for prescription medications through Medicare and Medicare Advantage prescription drug plans. All prescription medications, including specialty medications, covered by Part D plans are included under this cap.
The Centers for Medicare & Medicaid Services (CMS) has set the standard monthly Part B premium at $202.90 in 2026, an increase of $17.90, or just under 10 percent, from the 2025 premium of $185.00.
On average, the more than 20 million subsidized enrollees in the Affordable Care Act program are seeing their premium costs rise by 114% in 2026, according to an analysis by the health care research nonprofit KFF.
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.
As of 2025, the Medicare Part D “donut hole” no longer exists – meaning there is no longer a coverage gap during which Part D enrollees face higher drug costs. The “donut hole” was eliminated thanks to provisions of the Affordable Care Act (ACA) and the Inflation Reduction Act (IRA).
Short Answer. You can apply for a new Medicare supplement insurance policy at any time. However, medical underwriting may apply and you may be denied coverage due to health conditions. Each year, during the Annual Enrollment Period from October 15 to December 7, you can enroll in a Medicare Advantage plan.
Paying for Medigap
Medicare doesn't pay the premiums for your Medigap policy. Premium amounts typically increase each year.
The best time to buy a Medigap policy is during your Medigap Open Enrollment Period. This is the 6-month period that starts the first day of the month you're 65 or older and signed up for Part B. After this period, your options to buy a Medigap policy may be limited and the policy may cost more.
Best Medicare Supplement Insurance Companies in 2026
If the company ends your coverage before you switch to a new policy, you have 63 days from the date your coverage ends to apply for a new Medigap policy. Make sure you keep any letters, notices, or emails from your Medigap policy.
If you are age 65 or over and eligible for Medicare, you have a 6-month period during which you can purchase almost any Medigap policy at the lowest price for your age, even if you have or recently had health problems.
Did you know that, as of January 1, 2025, there is no longer a Coverage Gap Phase for those with Part D Prescription Drug coverage? The former coverage gap, also known as the “donut hole,” was eliminated as part of the Biden Administration's Inflation Reduction Act.
Who qualifies for extra $144 added to their Social Security depends on specific federal benefit programs and state supplemental payments. This additional monthly payment typically comes through Supplemental Security Income (SSI) state supplements or special Social Security Administration programs.
However, the size difference between donut holes and full donuts is also significant. A typical donut has a diameter of 72 to 82 millimeters with an 11 millimeter hole in the center. A donut hole, by contrast, averages under an ounce in weight, which is just about the size of the hole in the middle of a full donut.
Cost of Living Adjustment (COLA):
For the January to March 2025 period, there won't be an increase, as the CPI showed a small dip over the last three months. But don't worry—over the past year, benefits have still grown by 2.0%, helping seniors keep pace with rising living costs.
How many Americans have $500,000 in retirement savings? Of the 54.3% of U.S. households that have any money in retirement accounts, only about 9.3% have $500,000 or more in retirement savings.
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.
The price of car insurance continues to accelerate: In November 2025, the average cost of a full coverage auto policy is $2,697 a year, according to Bankrate data, or about $225 a month. That's 12% higher than last year and an increase of more than 50% from 2020.
Maximum out-of-pocket drug cost
The out-of-pocket maximum for a Medicare Part D prescription drug plan is $2,100 in 2026.
Health insurance premiums will increase in 2025 by an average of 3.73%, which is the biggest increase since 2018.
What are the cons of Medigap? It can be expensive: Medigap premiums vary greatly, ranging from as little as $30 to $40 per month all the way up to $400 or more per month. In general, you can expect to pay less for Medigap plans with less coverage. Some plans also have cost sharing in addition to premiums.