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For 2026 our Plan G Medigap premiums increased about 14% to $311.03 and $324.86. Our Part D premiums increased from $18.00 to $72.30 per month. And, the standard Part B premiums increased to $202.90.
These premiums total $1,186.29 per month for both of us, $14,235 a year. IRMAA adds several hundred dollars more per person, per month.
Even ignoring IRMAA, the basic premiums – unrelated to income – can be a hefty hit to income for retirees, especially for anyone living only on Social Security or even close to it. Of course Medigap premiums vary considerably, including by location and MA is an option, but then out of pocket costs can be a concern.
The median 65+ household income is about $55,000. So, basic premiums are around 25% of income and more for retiree couples below the 50th percentile.
Even the Affordable Care Act has some premium cost share limits.
Among large employers, coverage is considered affordable if the employee’s required contribution for the lowest-cost employee-only plan that meets minimum value does not exceed a specified percentage of the employee’s household income.
This percentage is indexed annually by the IRS and set at 9.96% for plan years beginning in 2026 (up from 9.02% in 2025 and the original statutory 9.5% baseline).
So, it seems retirees may not have the best deal when it comes to paying health insurance premiums – even with heavy taxpayer subsidies – 75% of Part B costs.
Everyone’s numbers are all over the board…as are the feelings regarding how good seniors have it.
Both my wife and I take a prescription drug that has an exorbitant cost. Hers was $1,400 a month, and mine was $1400 per 3 months in 2025…I don’t have the price yet for 2026. I sincerely hope President Trump’s efforts to bring down drug prices in the US are successful, but either way, we will both Max Out our Plan D Maximum OOP before mid-year.
For my wife and I we have the following costs:
Medicare Part B Kevin (2026) $202.90 $2,434.80
Medicare Part B Kim (2026) $202.90 $2,434.80
Med Sup – Kevin Plan G. (Annual) $1,516.44
Med Sup – Kim Plan G (Annual) $1,154.88
Medicare Part D Premium Kevin – $43.20
Medicare Part D Premium Kim – $43.20
Medicare Part D Deductible Kevin – $615.00
Medicare Part D Deductible Kim – $615.00
Deductibles Part B Deductibles – $283 ea. -$566.00
Maximum Out Of Pocke7 $4,200.00
Total Cost for Medicare in 2026 will be approixmately $13,623.32, assuming no hospitalizations.
We do not have IRMAA issues due to proper lifetime income planning.
Gross Income for 2025 was @133,000. Taxable income for 2025 was $5,320. Inocme Tax due for 2025: $368 Federal, $107 State. We will actual recieve a refund of $3791, because in 2025 I had dollars voluntarily withheld for the first 6 months of the year, from our social security benefits.
No Pension…Social Security, Annuity Income (72% Inocme Tax Free), and 4% Withdrawals from a brokerage account. (Zero Capital Gains). We will enjoy basically no income taxes due for 2026-2029.
Our Medicare, including MA and drug plans is less. My monthly is $228 or $2,736 per year. My spouse’s is similar and her drug supplemental insurance is $20 per year. Our total is about $5,500 per year.
I was under extreme care for cancer in 2023 & 2024. My out-of-pocket was less than 1% of the total of the medical bills.
Our current insurance is a bargain compared to what we were paying for my spouse’s “Affordable Care Act” (Obamacare) mandated insurance. Her insurance was about $10,000 per year and there was a $3600 deductible, as I recall. We had reviewed all plan options. This was the best price we could get for her. “Wealth Transfer”.
More like a 60+ Million person risk pool and general taxpayer subsidies plus your FICA taxes.
Medicare+Medigap plan—you’ve got the BEST coverage even though the premiums are relatively high.