Retirees on Medicare Just Got Some Hidden Bad News
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You'll often hear that once you retire, many of your expenses will decrease. Housing, for example, might cost you less because your mortgage may be paid off at that point....
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July 11, 2025
06:36 AM
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You'll often hear that once you retire, many of your expenses will decrease
Housing, for example, might cost you less because your mortgage may be paid off at that point
Or, you may be able to downsize to a that's cheaper to own and maintain
And if you're not commuting to work, you might spent a lot less on gas, tolls, and vehicle maintenance
But if there's one expense that tends to increase in retirement, it's healthcare
And there are a couple of reasons for this
Image source: Getty Images
First, aging tends to bring health issues
Even if you manage to stay relatively healthy, you may find that you need more screenings and medications than you did earlier in life
Secondly, many retirees end up getting health coverage through Medicare once they turn 65
And one big misconception Medicare is that it's inexpensive healthcare
Many retirees pay a lot of money for Medicare coverage, and that's on top of the cost of copays, deductibles, and other expenses
One cost that many retirees tend to moan is the expense of Medicare Part B, which covers outpatient care
In 2025, the cost of Part B rose compared to the year prior
And unfortunately, seniors could be looking at an even more substantial hike in 2026
How Part B increased in 2025 In 2025, the standard Medicare Part B premium rose to $185 from $174. 70 the year before
That means the typical senior this year is paying $123. 60 more on an annual basis
That's just what the standard Part B premium costs, though
Higher earners are commonly subject to surcharges called income-related monthly adjustment amounts, or IRMAAs, that can drive the cost of Medicare up even more
How high could Part B get in 2026
Each year, the Medicare Trustees release a report detailing the gram's finances
This year's report was 267 pages long, which means the typical retiree bably isn't reading it cover to cover
Buried in that report, however, is some potentially disturbing news
Based on the Medicare Trustees' most recent jections, the standard monthly Medicare Part B premium could rise to $206. 50 in 2026
The annual deductible for Part B could also increase from $257 this year to $288 in the new year
The blem here is twofold
First, any increase in the cost of Medicare Part B could burden seniors tremendously
But also, based on estimates so far, next year's Social Security cost-of-living adjustment (COLA) is not looking to be that large
The fear is that a substantial Part B premium hike could wipe out a big chunk of the typical Social Security COLA, leaving some retirees with virtually no raise
Of course, that $206. 50 number isn't set in stone -- it's just an estimate, which means the official number could come in lower
It could also come in higher, though
Current retirees may want to brace for a notable Part B premium hike in the new year -- and perhaps look at cutting some expenses in the near term to make up for it
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