As of today, you have only five days left to review your Medicare coverage for 2026 and make changes. If you were one of the thousands of Michigan Medicare beneficiaries whose plan was cancelled your period may have been extended to December 31 to pick a new plan for 2026. Check with your agent to be sure.
If you’ve read your Annual Notice of Change and are happy with your current plan, including changes for 2026, your job is done. Your plan will roll over to 2026 without issue.
It’s important to remember if you wake up on Jan. 1 in a panic that you missed all the deadlines you still have one more chance to review and make changes. The Medicare Advantage Open Enrollment Period runs from Jan. 1 to March 31.
So, relax, you can still call and make an appointment after this whirlwind period to review and fix any issues you may have.
On Nov. 14, the Center for Medicare & Medicaid Services (CMS) announced 2026 Medicare Parts A & B premiums and deductibles. Since September, I’ve been reporting numbers for 2026, and I pray these numbers are the final ones but based on this administration’s track record of midcourse changes we’ll wait and see.
First off, the Social Security Cost-of-Living (COLA) increase has been set at 2.8%. Based on the Michigan average Social Security check being $2,005 that means a monthly increase of $56.14 or $673.68 annually.
But as we know, “what one hand giveth, the other taketh away.”
The Part B Premium for 2026 is $202.90 which is an increase of $17.90 from the current $185.00 for 2025. That is a 9.68% increase. In the last two years we’ve seen our Part B Premium increase by 15.58% (5.9% in 2025 and 9.68% in 2026) while COLA has only increase by 5.3% (2.5% in 2025 and 2.8% for 2026).
If my math is correct, it means we’ve lost approximately 10 percent of our Social Security value in the last two years, and it also means a net increase in 2026 Social Security of just $38.24 a month.
Ninety-five percent of us have some form of Medicare supplemental coverage-either a Medigap or Medicare Advantage plan. In either case Medicare pays 80% of our health care costs and we are responsible for the remaining 20%. Because we have these policies most of us do not realize that Medicare Part A, which has no monthly premium, and Part B have significant deductibles and cost sharing if you only have Original Medicare Part’s A & B.
The 2026 Medicare Part A inpatient hospital deductible you will pay if admitted will be $1,736 ( $1,676 in 2025). This will cover you for the first 60 days. After 60 days you have a coinsurance amount of $434 per day for 61st through 90th day of hospitalization ($419 in 2025) and after you’ve used up all your lifetime reserve days you will have a cost of $868 per day of coinsurance. Part B has a deductible of $283 for 2026 ($257 for 2025). In addition, Part B has an uncapped 20% copay for all medical cost after the deductible. For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care will be $217 in 2026 ($209.50 in 2025).
If you find yourself in the hospital for 75 days and you only have Part’s A & B you can expect to be saddled with enormous hospital and medical bills. Based on the deductibles and coinsurance amounts for 2026, using a modest $60,000 of approved Part B medical expenses, you’ll have an out of pocket cost of $20,529. The Part B uncapped copay could increase this amount substantially.
Most medical bankruptcies happen to the 5% of those without a supplemental plan. Underscoring the need to review and finding the right plan for you.
Although 2026 will see higher premiums, higher max out of pocket, higher deductibles and copays it is still a bargain compared to the alternative. We should thank our lucky stars that In July of 1965 President Johnson signed Medicare into law that today provides almost 69 million of us with medical coverage that is affordable and comprehensive.
Our only job to make sure no one takes it away.