Medicare Cost Calculator 2026

Medicare has four parts: Part A (hospital insurance) covers inpatient hospital stays, skilled nursing, hospice, and home health - usually free for those with 10+ years of Medicare tax payments; Part B (medical insurance) covers doctor visits, outpatient care, and preventive services - $185/month in 2026; Part D (prescription drugs) covers medications through standalone plans; and Medigap (supplemental insurance) fills gaps in Original Medicare. Some choose Medicare Advantage (Part C) instead, which is an all-in-one alternative offered by private insurers. Understanding each part helps you choose coverage that fits your healthcare needs and budget.

IRMAA (Income-Related Monthly Adjustment Amount) is an income-based surcharge added to Part B and Part D premiums for higher-income Medicare beneficiaries. In 2026, unmarried individuals earning over $97,000 and married couples over $194,000 pay extra. The surcharge increases with income brackets, up to an additional $356/month at the highest income level. IRMAA is calculated using your Modified Adjusted Gross Income (MAGI) from 2 years prior. It's automatically deducted from your Social Security check. You can appeal IRMAA if you've had a significant income decrease due to retirement, job loss, or death of a spouse.

You become eligible for Medicare at age 65. You should enroll during your Initial Enrollment Period, which starts 3 months before your 65th birthday month, includes that month, and ends 3 months after. Enrolling on time avoids late enrollment penalties (10% higher premiums for each 12-month period you're late). If you have employer coverage when turning 65, you may defer Part B enrollment without penalty while employed. Once you lose employer coverage, you have 8 months to enroll without penalty. Missing this window triggers permanent premium increases, so plan ahead.

Original Medicare (Parts A and B) allows you to see any provider nationwide, but leaves you vulnerable to out-of-pocket costs - that's why most buy Medigap. Medicare Advantage (Part C) is managed by private insurers and usually has $0 premiums and lower copays, but restricts you to in-network providers (except emergencies). Advantage plans include Part D drug coverage. Advantage has annual out-of-pocket limits; Original Medicare doesn't. Choose Original Medicare if you want provider flexibility and comprehensive coverage (with Medigap). Choose Advantage if you want lower premiums and don't mind network restrictions.

The Part D 'donut hole' (coverage gap) is a range of drug costs you're responsible for after initial coverage ends. In 2026, you enter the donut hole after you and your plan have spent $6,550 in covered drugs combined. In the gap, you pay up to 25% of brand-name drug costs and 25% of generic drug costs until your out-of-pocket spending reaches $2,100. After that, you pay just small copayments as catastrophic coverage kicks in. Biosimilar drugs (copies of high-cost biologic drugs) have lower copayments to help offset donut hole costs. The donut hole shrinks each year as part of the Affordable Care Act.

Yes, your data is completely safe and private. This calculator runs entirely in your browser and processes all information locally on your device without transmitting any personal or financial information to external servers. We do not collect, store, or share any data you enter about income, healthcare usage, or medical conditions. No tracking cookies are used. For actual Medicare enrollment and account management, use Medicare.gov directly, which is a secure government website protected by federal privacy laws. This is an educational tool only for estimating costs.