What You'll Pay in Out-of-Pocket Medicare Costs in 2026
National Council on Aging walks through 2026 Medicare premiums, deductibles, and caps, including Part B, Part D, and Medicare Advantage/Medigap out-of-pocket limits, plus the new annual cap on prescription drug costs.
Source: Ncoa ·
Grace's Take
The prescription drug cost cap just became real: once you hit $2,100 in Part D spending, Medicare covers the rest with zero out-of-pocket costs, fundamentally reshaping what catastrophic drug expenses look like in retirement. For someone 15 years from retirement, this shifts the calculus on healthcare reserves. Where you once needed to plan for potentially unlimited drug costs in your 80s, there's now a hard ceiling—meaningful for long-term care scenarios and budget predictability once you're no longer working. Worth running the numbers on whether this cap changes how aggressively you need to fund a dedicated healthcare reserve account versus other retirement priorities.
- •Standard Medicare Part B premium in 2026 is **$202.90** per month for most beneficiaries[7].
- •Average stand‑alone Part D premium is projected to **decrease** to about **$34.50** in 2026[7].
- •Annual out‑of‑pocket costs for Part D rise to **$2,100** in 2026, but drug spending is now capped with $0 cost‑sharing after hitting the threshold[7].
Gives adults over 50 clear numbers to plug into retirement budgets, including premiums and maximum drug and plan out‑of‑pocket costs, which is critical for planning healthcare spending after age 65.