Medicare Costs in 2026 at a Glance

In 2026 the standard Part B premium is $202.90 a month and the Part B deductible is $283. Part A is premium-free for most people, with a $1,736 deductible for each benefit period. Out-of-pocket costs for covered Part D drugs are capped at $2,100 for 2026, rising to $2,400 in 2027. Higher earners pay more for Parts B and D through IRMAA, and signing up late can add a penalty for life. Every federal figure below comes from CMS. The 2027 Part B premium and deductible are usually announced in November, and we will update this guide when CMS publishes them.

Part A: hospital insurance

A benefit period starts the day you are admitted and ends once you have been out of a hospital or skilled nursing facility for 60 days in a row, so the deductible can apply more than once in a year. After day 150 of a hospital stay, Original Medicare pays nothing.

To see what that means in dollars: a 10-day hospital stay costs $1,736 under Original Medicare alone. A 25-day stay in a skilled nursing facility afterward adds 5 days at $217, or $1,085. Two separate admissions more than 60 days apart can mean paying the $1,736 deductible twice in the same year.

Source: 2026 Medicare Parts A and B premiums and deductibles.

Part B: medical insurance

The 2026 standard Part B premium is $202.90 a month, or $2,434.80 for the year, and the annual deductible is $283 (CMS, 2026). After the deductible you generally pay 20 percent of the Medicare-approved amount for doctor services, outpatient care, therapy and medical equipment, and Original Medicare puts no annual cap on that 20 percent.

That missing cap is the cost people underestimate. An outpatient surgery with a $10,000 Medicare-approved amount leaves you 20 percent, $2,000, on Original Medicare alone. A Medicare Supplement or a Medicare Advantage plan is how most people put a ceiling on that exposure.

You pay the standard premium if you sign up for Part B for the first time in 2026, do not get Social Security benefits, are billed directly, or have Medicare and NJ FamilyCare and the state pays your premium. Social Security tells you your exact amount each year.

Late enrollment penalties

If you do not sign up for Part B when you are first eligible, and you do not have group coverage from your own or your spouse's current job, your premium goes up 10 percent for each full 12-month period you could have had Part B but did not. The penalty lasts for as long as you have Part B.

Here is what that looks like in 2026: wait two full years and the penalty is 20 percent of $202.90, or $40.60 a month once Medicare rounds to the nearest 10 cents, for a premium of $243.50. That is $487.20 a year, every year, and it rises when the standard premium rises.

Part D has its own penalty: 1 percent of the national base premium ($38.99 in 2026, $41.33 in 2027) for each full month without creditable drug coverage. If you have to buy Part A, its penalty is 10 percent, paid for twice the number of years you went without it. Our Part B and Part D penalty calculators show your own numbers.

IRMAA: the income-related surcharge

If your modified adjusted gross income from your 2024 tax return is above these levels, you pay more for Part B and Part D in 2026 (CMS, 2026):

Source: 2026 Medicare Parts A and B premiums and deductibles.

Part D: prescription drug coverage

Premiums are set by each plan. In New Jersey, the 11 standalone Part D plans in the CY2027 CMS Landscape file range from $5.30 to $217.90 a month, with deductibles from $300 up to the $700 maximum. None has a $0 premium for 2027, although two basic plans sit under the $36.28 low-income benchmark, so people with full Extra Help pay no premium for them.

Source: 2026 Medicare Part D bid information and base beneficiary premium.

Medicare Advantage and Medigap costs in South Jersey

Medicare Advantage premiums, copays and out-of-pocket maximums are set plan by plan. In the CY2027 CMS Landscape file, Camden County has 41 standard Medicare Advantage plans (Special Needs Plans not counted). Of the 34 that include drug coverage, 17 have no monthly premium for Parts C and D combined; the 7 plans without drug coverage also have a $0 Part C premium. The highest premium is $149 a month, and in-network out-of-pocket maximums run from $4,150 to $9,850. The $4,150 plan has no drug coverage; statewide, the lowest maximum on a plan with drug coverage is $4,500. You keep paying your Part B premium either way.

Medicare Supplement premiums depend on the plan letter, the company, your age, your ZIP code and whether you use tobacco, and the same plan letter can cost very different amounts from one company to the next. Ask each company, or Jackie, for the rate at your own age and ZIP code rather than relying on a single published number.

Two ways a year of costs can look, in dollars

Here is an illustration only, not a quote. It uses the 2026 Part B premium (the 2027 amount is not announced yet), a made-up Plan G premium of $200 a month to show the arithmetic, the lowest-premium basic New Jersey Part D plan for 2027 (Wellcare Classic, $24.30 a month), and the highest in-network maximum in Camden County for 2027 as the Medicare Advantage worst case. Swap in your own quotes.

Illustration: a hypothetical example built from the rules and figures cited on this page, not a quote.

If these costs are hard to manage

• New Jersey's Medicare Savings Programs pay the $202.90 Part B premium, worth $2,434.80 a year, for people who qualify. In 2026 the income limits are $15,960 single or $21,640 married for QMB, $19,152 or $25,968 for SLMB, and $21,546 or $29,214 for QI, with assets up to $9,950 single or $14,910 married. QMB also pays Medicare deductibles and coinsurance.
• Extra Help lowers Part D premiums and copays. In 2026 you may qualify with income below $23,940 single or $32,460 married (SSA).
• PAAD helps New Jersey residents with 2026 income under $54,943 single or $62,390 married pay for prescriptions, with $5 generic and $7 brand copays. Apply for PAAD and the Medicare Savings Programs through NJSave, 1-800-792-9745.
• Our Extra Help and Medicare Savings Programs guide and our PAAD and Senior Gold guide explain how to apply.

What to check before you budget for 2027

• Watch for the 2027 Part B premium, deductible and IRMAA brackets, which CMS usually announces in November.
• Read your plan's Annual Notice of Change for 2027 premiums, copays and the out-of-pocket maximum.
• If your income fell, file form SSA-44 so IRMAA is based on your current income.
• Price your drugs for 2027: the Part D deductible limit rises to $700 and the cap to $2,400.
• If you are paying a Medigap premium, ask your company for its 2027 rate and compare it with quotes from other companies, remembering that a switch usually means health questions in New Jersey.

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The bottom line

For 2026, budget $202.90 a month for Part B, the $283 Part B deductible, and a $1,736 Part A deductible per benefit period if you have no other coverage, plus whatever your supplement, Advantage or drug plan charges. A year on Original Medicare with a supplement is steady and predictable; a $0 premium Advantage plan starts at $2,434.80 but can climb toward its out-of-pocket maximum in a hard year. If your income is above $109,000 single or $218,000 joint, check IRMAA; if it is limited, check the Medicare Savings Programs, Extra Help and PAAD first. Call or text Jackie at (856) 727-4221 for your own numbers.