Part B costs (medical insurance)
Part B has the costs most beneficiaries encounter monthly. The standard premium is deducted from your Social Security check.
| Cost | 2026 Amount |
|---|---|
| Standard monthly premium | $185.00 |
| Annual deductible | $257.00 |
| Coinsurance after deductible | 20% |
| Out-of-pocket maximum | None* |
*Original Medicare has no out-of-pocket maximum. This is why many people add a Medigap policy or choose Medicare Advantage, which does have an annual cap.
Part A costs (hospital insurance)
| Cost | 2026 Amount |
|---|---|
| Monthly premium (40+ work credits) | $0 |
| Monthly premium (30–39 credits) | $283 |
| Monthly premium (<30 credits) | $505 |
| Hospital deductible (per benefit period) | $1,676 |
| Hospital coinsurance (days 61–90) | $419/day |
| Lifetime reserve days (days 91+) | $838/day |
| Skilled nursing facility (days 21–100) | $209.50/day |
Income-related surcharges (IRMAA)
Higher-income beneficiaries pay more for both Part B and Part D. IRMAA is based on your tax return from two years ago.
| Individual Income | Joint Income | Part B Premium |
|---|---|---|
| ≤ $106,000 | ≤ $212,000 | $185.00 |
| $106,001 – $133,000 | $212,001 – $266,000 | $259.00 |
| $133,001 – $167,000 | $266,001 – $334,000 | $370.00 |
| $167,001 – $200,000 | $334,001 – $400,000 | $480.90 |
| $200,001 – $500,000 | $400,001 – $750,000 | $591.90 |
| > $500,000 | > $750,000 | $628.90 |
Income changed? If you've retired, divorced, lost a spouse, or had another life-changing event, you can request IRMAA reconsideration using SSA Form SSA-44.
Part D costs (prescription drugs)
| Cost | 2026 Amount |
|---|---|
| Average monthly premium (national) | ~$46 |
| Annual deductible (max allowed) | $590 |
| Annual out-of-pocket cap | $2,000 |
| Late enrollment penalty | 1% × national base premium × months without coverage |
New for 2025–2026: The Inflation Reduction Act capped out-of-pocket drug costs at $2,000 per year for all Part D and Medicare Advantage plans with drug coverage. This is a significant change from previous years when there was no cap. Learn more at MedicarePartD.org.
Medicare Advantage costs
Medicare Advantage costs vary by plan and county. Here are the key cost components:
- Monthly premium — Many plans in Colorado offer $0 premiums. You still pay your Part B premium.
- Copays — Fixed amounts for doctor visits, prescriptions, and services. Vary by plan.
- Out-of-pocket maximum — The most you'll pay in a year. Medicare sets the ceiling at $8,850 for in-network services in 2026, but many plans set lower limits.
Compare Medicare Advantage plans available in your Colorado county to see specific costs.
Late enrollment penalties
Missing your enrollment windows can result in permanent premium surcharges:
- Part A penalty — 10% higher premium for twice the number of years you delayed (only if you pay a premium for Part A).
- Part B penalty — 10% higher premium for each full 12-month period you delayed. Lasts as long as you have Part B.
- Part D penalty — 1% of the national base premium multiplied by the number of months without creditable coverage. Lasts as long as you have Part D.
These penalties are permanent. They are added to your premium every month for as long as you have that coverage. The best way to avoid them is to enroll during your Initial Enrollment Period.