Medicare Part B in 2027: Why Your Premium Keeps Rising and How to Offset It
Billy Rosario
ABA 360 Solutions Group, LLC
The 2026 Part B Numbers
If you opened your Medicare statement and felt your stomach drop, you're not alone. The standard Medicare Part B premium for 2026 is $202.90 per month — an increase of $17.90 from the $185.00 you paid in 2025. The annual Part B deductible also rose to $283, up $26 from last year. These increases affect every Medicare beneficiary enrolled in Part B, regardless of income level.
Why Did It Go Up?
Medicare Part B premiums are recalculated every year based on projected healthcare spending and the Medicare Trust Fund's financial outlook. The 2026 increase is driven by rising healthcare costs across the board — more expensive specialty drugs, increased utilization of outpatient services, and inflationary pressures on provider reimbursement rates. CMS also factors in the growing number of enrollees as baby boomers continue to age into Medicare.
What Is IRMAA and Could You Be Paying Even More?
For 2026 premiums, if your Modified Adjusted Gross Income (MAGI) from two years earlier exceeded $109,000 for individuals or $218,000 for married couples filing jointly, you pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of the standard premium. For 2027, the surcharge is based on your 2025 tax return, and CMS publishes the new brackets each fall. IRMAA surcharges can add anywhere from $70 to over $400 per month per person. If your income recently dropped — due to retirement, loss of a spouse, or other life-changing events — you can file Form SSA-44 to request a reassessment based on your current income, not two-year-old tax data.
How to Offset the Cost Increase
There are several strategies to soften the blow. First, check if you qualify for a Medicare Savings Program (MSP) — these state programs can pay your Part B premium entirely if your income and assets are within limits. Second, review your Medicare Advantage or Medigap plan during Annual Enrollment (October 15 – December 7). A plan with lower copays and out-of-pocket costs might save you more than the premium increase costs. Third, look at Part D changes — the Inflation Reduction Act capped annual out-of-pocket drug costs ($2,000 in 2025, $2,100 in 2026), and for 2027 the cap rises to $2,400 with a maximum deductible of $700. The Annual Enrollment Period happening now (October 15 – December 7, 2026) is when you choose your 2027 plan. If your current plan's formulary doesn't cover your drugs efficiently, switching could save hundreds. Billy can review your entire Medicare setup for free and show you where to save.
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