As Medicare enrollees look ahead to 2026, one thing is already clear: Healthcare isn’t getting any cheaper. And, while the 2026 cost-of-living adjustment for Social Security recipients will result in seniors receiving an extra $56 per month on average, this modest raise is about to feel a lot smaller for beneficiaries due, in large part, to those rising healthcare costs. That’s because Medicare Part B premiums are slated to increase to $202.90 per month next year, a nearly 10% increase that will consume almost one-third of that Social Security bump.
Next year’s increases don’t stop at premiums, either. The Medicare Part B deductible is slated to climb from $257 to $283 next year, while the Part A hospital deductible will hit $1,736, a $60 increase compared to this year’s costs. Coinsurance rates for extended hospital stays and skilled nursing facilities are also on the rise. And, all of this is happening while healthcare inflation continues to outpace the modest increases in fixed incomes.
These rising costs have more people asking whether Medicare supplemental insurance, commonly called Medigap, is worth the extra monthly expense. These policies are intended to help fill the gaps in Original Medicare coverage, but they come with their own price tags. So, with healthcare costs climbing, will the cost of Medicare supplemental coverage actually be worth it in 2026?
Medigap, on the other hand, puts a ceiling on your financial exposure. Medigap plans K and L come with out-of-pocket maximums, and plans like Medigap Plan G and Plan N also cover the bulk of Medicare’s cost-sharing, which shields you from rising per-visit or per-procedure expenses.
Medigap plans let beneficiaries see any doctor or specialist who accepts Medicare, and they do so with no referrals or preapprovals required.
However, beneficiaries must purchase standalone Part D coverage to cover drug costs, and potentially separate dental or vision plans, adding more monthly premiums to the mix.
While Medigap premiums require an upfront investment, many older adults who take this route end up saving money over time, especially considering that healthcare needs increase with age.