Medicare Part B Premium Calculator 2026

The 2026 Part B premium increase reflects rising healthcare costs, increased utilization of Medicare services, and CMS actuarial projections. Part B premiums are set to cover approximately 25% of the program's costs, with the federal government covering the remaining 75% from general revenues. CMS adjusts premiums annually each November based on projected expenditures for the coming year.

Medicare Part B premiums can be deducted as a medical expense if you itemize deductions on your federal tax return. However, you can only deduct unreimbursed medical expenses that exceed 7.5% of your adjusted gross income (AGI). For self-employed individuals, Medicare premiums (including Part B) may be 100% deductible as a self-employed health insurance deduction, subject to certain limitations. Consult a tax professional for guidance specific to your situation.

The "hold-harmless" provision prevents your net Social Security benefit from decreasing due to Part B premium increases. If the dollar increase in your Part B premium is greater than your Social Security COLA (cost-of-living adjustment), your premium increase is limited to the amount of your COLA raise. This protection does not apply if you are new to Medicare, do not receive Social Security, or if IRMAA applies to you.

You can decline Part B when you first become eligible, but doing so without qualifying employer coverage will result in a permanent late enrollment penalty of 10% per year. You can only enroll during limited enrollment windows. Most financial advisors recommend enrolling in Part B at 65 unless you have comparable coverage through an employer with 20+ employees. Delaying Part B while covered by group health insurance through active employment (yours or a spouse's) is penalty-free, but you must enroll within 8 months of losing that coverage.