Why Your Medicare Premium Just Went Up (and What You Can Do About It)
Key Points
The first step in lowering the cost of Medicare is to explore your options at least once a year.
Medicare prices can vary widely, depending on the plan.
If you're paying more for Medicare due to a high income but your circumstances change, you can appeal.
- The $23,760 Social Security bonus most retirees completely overlook ›
If you're on Medicare, you've probably noticed that you're paying more in 2026. That could be due to the higher standard Part B premium or, if you're a high earner, the increase in your Income Related Monthly Adjustment Amount (IRMAA).
The IRMAA is a surcharge added to Medicare Part B and Part D for those earning over certain thresholds. While it doesn't affect every Medicare recipient, its increases can still cut into a budget.
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Across the board, the cost of medical care is up 3.4% over last year, and if you're struggling to pay for health coverage in retirement, no increase is welcome. However, you're not without options. Here are three:
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1. Be picky about your plan
You may have signed up for a specific Medicare plan, but you don't have to stick with it for the rest of your life. Medicare open enrollment runs from Oct. 15 to Dec. 7 each year. During this period, you have the option of changing your prescription drug coverage (Part D), Medicare Advantage plan, or Original Medicare plan.
You can use the time to switch from Original Medicare to Medicare Advantage, or vice versa. In addition, if you already have a Medicare Advantage Plan, you can change to a different Medicare Advantage Plan (or go back to Original Medicare) from Jan. 1 through March 31.
Review each of your options carefully, looking for a lower-cost plan that still provides the coverage you want. Plan prices can vary widely, and there may be one that best fits your needs.
2. Reduce your MAGI
If your difficulty is the higher cost of IRMAA (or you want to avoid IRMAA), focus on your taxable income. The higher your taxable income, the greater the chance you'll be hit with a surcharge for Medicare Part B and Part D.
Explore possible ways to lower your modified adjusted gross income (MAGI), such as using your required minimum distribution to make a qualified charitable distribution or maximizing above-the-line deductions. If you're not quite sure how to do that, a tax professional can help.
3. Make an IRMAA appeal
If you've experienced a life-altering event but your Medicare rates are high because you're paying an IRMAA surcharge, you can appeal the higher premium to the Social Security Administration. A life-altering event is anything that reduces your income, such as a divorce, the death of a spouse, or a job loss (if you're still working or working while retired).
Given the current costs of groceries, insurance, and gasoline, it doesn't make sense to pay more than you must for Medicare. The first step toward lowering your cost is to explore all available options.
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