What Is the Medicare Part B Deductible for 2026? + How It Works

According to the CMS cost announcement 2026, Part B deductible 2026 will be $257 compared to 240 in 2025. That is the amount you pay out of pocket on the Medicare Part B covered services, each calendar year, before Medicare begins to pay its share. When you have met the deductible amount, you are normally required to contribute 20% of the coinsurance amount when utilizing most of the services and Medicare covers the remaining 80% amount. The deductible is re-established on January 1.

This guide explains how the deductible works, what counts, what doesn't and how you can minimize your exposure to the 20 percent coinsurance that follows. The sources of information are Medicare.gov, CMS, KFF, and SSA. The article is revised every year, in January, providing new numbers. 

What is the Medicare Part B deductible for 2025 and 2026?

The Part B deductible for 2026 is $257. The 2025 amount was $240. The deductible has risen most years for the past decade, tracking medical inflation.

The 2023 decrease was unusual, driven by lower-than-projected costs for a specific Alzheimer's drug. Most years the deductible rises by $5 to $30. CMS announces the new figure in November of each year for the following calendar year.

How does the Medicare deductible work?

How does Medicare deductible work in practice? The Part B deductible is the first $257 of qualifying medical bills you pay each year. After that, your insurance share kicks in. Here's how it plays out for an example beneficiary.

Susan turns 65 in January 2026 and enrolls in Medicare Part B. Her first medical visit is February 4, a $400 specialist appointment.

• Medicare's negotiated rate for the visit is $200

• Susan pays the full $200 toward her deductible

• Her running deductible balance: $200 paid, $57 to go

Susan has an outpatient procedure worth $300 (Medicare has negotiated a rate of $250). The initial 57 will cover her deductible. The other 193 can be classified under her 20 percent coinsurance and she pays 38.60. Medicare pays $154.40.

Susan has spent a total of out-of-pocket: $295.60.

Each Part B service in 2026 is covered after the deductible, but until she pays an out-of-pocket maximum every subsequent Part B service in 2026 is covered. There isn't one on Original Medicare. This is the reason why a majority of the beneficiaries add a Medigap plan or opt to use Medicare Advantage which both limits the 20% coinsurance.

What counts toward the Part B deductible?

Part B deductible relates to the services that are included in the Part B coverage. The majority of outpatient services, as well as physician services, are counted.

The services that would be included in the deductible are doctor visits and specialist consultations, outpatient hospital services and same-day surgeries, lab tests and X-rays, durable medical equipment (wheelchairs, walkers, oxygen), mental health outpatient services, ambulance services, and chemotherapy provided in a clinical setting.

Services not included in the Part B deductible include Part A hospital admissions (those have their own separate deductible of $1,684 in 2026), the majority of preventive services, such as annual wellness checkups and recommended cancer screenings (the latter are covered at $0 even before the deductible), prescription medications you fill at a pharmacy (those fall under Medicare Part D), and services not covered by Medicare whatsoever (most dental, hearing aids, long-term care).

The exception of preventive services is notable. There are approximately 60 preventive services covered by the ACA and include coverage at $0 even before you have spent a dollar toward the deductible. This comprises the majority of the annual wellness evaluations, vaccinations, and cancer screening. See our does Medicare cover dental guide for what is and isn't covered. 

Medicare Part B premium 2026 and IRMAA

The Medicare Part B premium 2026 is $185.00 per month for most beneficiaries, up from $174.70 in 2025. Higher-income beneficiaries pay more under the Income-Related Monthly Adjustment Amount (IRMAA). IRMAA brackets are based on your modified adjusted gross income from two years ago.

The premium and the deductible are separate. You pay the premium every month. You pay toward the deductible only when you actually use covered services.

How to reduce your Part B costs after the deductible

After the $257 deductible is met, the 20% coinsurance with no out-of-pocket maximum is what creates real financial exposure on Original Medicare. There are three main ways to cap that exposure.

Add a Medigap plan. Plan G covers the 20% coinsurance plus most other Medicare gaps. Plan N covers most of the 20% but charges small copays for office visits and ER. Plan F covers everything including the deductible itself but is closed to new enrollees after 2020. See our full Medigap guide.

Switch to Medicare Advantage. Medicare Advantage plans include an annual out-of-pocket maximum, often between $4,500 and $8,850 in 2026. Once you hit that cap, your covered care is free for the rest of the year. The trade-off: provider networks and prior authorization rules.

Apply for a Medicare Savings Program. If your income and assets are limited, the Medicare Savings Program can pay your Part B premium and sometimes the deductible. About 1 in 7 Medicare beneficiaries qualifies but doesn't apply.

Medicare tax and how it funds Part B

Part B is funded by a combination of beneficiary premiums (about 25%) and federal general revenues (about 75%), per CMS. Unlike Part A, which is funded by the Medicare tax on payroll, Part B funding doesn't come from a dedicated payroll tax. This is why Part B premiums increase faster than Social Security cost-of-living adjustments in many years.