Medicare Part A—hospital coverage that covers inpatient hospital care, skilled nursing facility, hospice, and some home health services—is still free to premiums for the overwhelming majority of beneficiaries. But around 1% with insufficient work history pay a monthly premium. In 2026, premiums for these Part A benefits will rise, so it is important that those affected know about the new prices, see if they can qualify, and take action now to get ready for higher costs.
2026 Part A Premium and deductible amounts
Beginning January 1, 2026, Medicare members who pay a Part A premium will be charged two new monthly premiums based on their work-credit history:
- $310 per month for those with 30–39 quarters of Medicare-covered employment (up from $285 in 2025).
- $563 a month for individuals with less than 30 quarters of Medicare-covered work (from $518 in 2025).
Additionally, the Part A inpatient deductible (which is per benefit period, not calendar year) will increase to $1,716 in 2026, a $40 increase from the $1,676 deductible for 2025.
Who pays Part A Premiums and why they’re increasing
Most people gain 40 quarters (10 years) of work credits through Medicare payroll taxes and do not pay a premium for Part A. The remaining individuals with fewer than full work credits are classified into two groups:
1. 30–39 Quarters of Coverage: These individuals pay the lower level premium of $310.
2. Fewer Than 30 Quarters of Coverage: These members pay the higher amount of $563.
Higher premiums are due to rising hospital and skilled-nursing charges, medical inflation, and extended-term financing of the Medicare Trust Fund. Rising costs fall more on beneficiaries with less than a full work history.
Finding whether you’re impacted
To determine if you must pay a Part A premium in 2026:
1. Check your Social Security Statement or MyMedicare.gov account for your work quarter count.
2. Determine if you have at least 40 quarters of Medicare-covered work—if so, you continue to pay no Part A premium.
3. If you have fewer than 40 quarters, see if you are in the 30–39 quarter range or less than 30 quarters to anticipate your premium rate.
Those who are not certain of their quarter total can request from the Social Security Administration a full earnings record to verify coverage history before the new year.
Preparing for higher 2026 costs
Although Part A premiums are assessed to a relatively small percentage of enrollees, the rise in both premium and deductible reinforces the value of advance financial planning:
- Adjust retiree budgets: Increase monthly medical expenses by $25–$45 if you’re paying premiums.
- Maximize supplemental coverage: Purchase a Medigap (“Medicare Supplement”) policy to assist with payment of Part A deductibles, coinsurance, or lifetime reserve day costs.
- Verify employer or union benefits: Some group plans pay for Part A premiums or offer assistance programs.
- Verify IRMAA implications: If you also pay increased premiums for Parts B or Part D due to Income-Related Monthly Adjustment Amounts, decide tax planning strategies—like taking charitable IRA distributions—to reduce reported income and reduce surcharges.
What to do now
1. Check your work credits: Check your SSA earnings record to confirm your exact quarter count and premium obligation.
2. Estimate Out-of-pocket costs: Calculate the total possible Part A cost for the year, such as hospital stays and deductibles.
3. Compare supplemental plans: Take advantage of Medicare Open Enrollment (Oct. 15–Dec. 7, 2025) to compare Medigap or Medicare Advantage plans that cover Part A costs and may limit your exposure to hospital charges.
4. Talk with a benefits counselor: Meet with a State Health Insurance Assistance Program (SHIP) counselor to discuss options and learn about eligibility for premium assistance programs in your state.
5. Budget for cash flow: If premiums are applicable, budget money each month to be paid on time and prevent gaps in coverage.
The handful of Part A premium-paid beneficiaries will see those costs creep higher in 2026. By taking advantage of verification of your work history, anticipating greater premiums and deductibles, and examining supplemental coverage, you can soften the impact of the changes. Forward planning during open enrollment and engaged fiscal planning will maintain hospital coverage and protect your retirement budget from surprise Medicare expenses.
Read more: Five reasons why you should start cashing your Social Security checks at age 62
