Medicare 101 · 06

Medicare costs — the real 2026 numbers.

Medicare's 2026 costs at a glance: Part A is $0 a month for most people, Part B is $202.90 a month standard, the Part B annual deductible is $246, and Part D out-of-pocket drug spending is capped at $2,000 a year for the first time. Higher earners pay more through Income-Related Monthly Adjustment Amount (IRMAA) brackets. Here's the full breakdown of every cost line and how to budget for them.

Part A — Hospital

• Premium: $0 if you have 40 work-credit quarters; $285/month with 30–39 quarters; $565/month with fewer.
• Hospital deductible: $1,736 per benefit period.
• Hospital coinsurance: $0 days 1–60; $434/day days 61–90; $838/day for "lifetime reserve" days; full cost after.
• Skilled nursing coinsurance: $0 days 1–20; $209.50/day days 21–100; full cost after.

Part B — Medical

• Standard premium: $202.90/month (most people).
• IRMAA tiers (2026): If you filed individually with MAGI > $109,000 (or jointly > $218,000), you pay an income-related surcharge ranging from $74/month to $443.90/month on top.
• Annual deductible: $283/year.
• Coinsurance: 20% of Medicare-approved costs—no out-of-pocket cap.

Part C — Medicare Advantage

• Premium: Often $0 (you still pay Part B premium). Some plans charge $20–$80+.
• In-network MOOP cap (2026): $9,250. Combined in/out of network: $14,000.
• Copays: Vary by plan—e.g. $0–$25 PCP, $25–$50 specialist, $300–$450/day inpatient (first 3–7 days).

Part D — Drugs

• Average premium (2026): ~$39/month standalone; varies $0–$100+.
• Maximum deductible: $615/year.
• Out-of-pocket cap (2026): $2,000/year. First time ever.
• IRMAA Part D surcharge: $13.70–$85.80/month on top of plan premium for high earners.

Medigap — Supplement plans

Medigap premiums depend on plan letter (A, G, N, etc.), age, sex, smoker status, and zip code.

• Plan G: ~$130–$220/month at 65 in California, going up with age.
• Plan N: ~$95–$160/month at 65 in California.
• High-deductible Plan G: ~$50–$80/month at 65.

What to budget

A typical SoCal Medicare-eligible person spends roughly:

• Original + Plan G + Part D: ~$202.90 (Part B) + ~$160 (Plan G) + ~$39 (Part D) = ~$402/month
• Medicare Advantage with $0 premium: ~$202.90 (Part B) + $0 plan = ~$202.90/month — plus copays when you use care

Both numbers are before any IRMAA surcharges. We'll run the math for your specific situation in 15 minutes—no charge.

Talk to a licensed agent—no cost, no pressure.

30-minute call. We'll review your situation, compare plans available in your area, and answer your questions. No obligation, ever.