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AUTHOR: R Quinn on 1/14/2026
For 2026 our Plan G Medigap premiums increased about 14% to $311.03 and $324.86. Our Part D premiums increased from $18.00 to $72.30 per month. And, the standard Part B premiums increased to $202.90.
These premiums total $1,186.29 per month for both of us, $14,235 a year. IRMAA may add several hundred dollars more per person, per month.
Even ignoring IRMAA, the basic premiums – unrelated to income – can be a hefty hit to income for retirees, especially for anyone living only on Social Security or even close to it. Of course Medigap premiums vary considerably, including by location and MA is an option, but then out of pocket costs can be a concern.
The median 65+ household income is about $55,000. So, basic premiums are around 25% of income and more for retiree couples below the 50th percentile.
Even the Affordable Care Act has some premium cost share limits.
Among large employers, coverage is considered affordable if the employee’s required contribution for the lowest-cost employee-only plan that meets minimum value does not exceed a specified percentage of the employee’s household income.
This percentage is indexed annually by the IRS and set at 9.96% for plan years beginning in 2026 (up from 9.02% in 2025 and the original statutory 9.5% baseline).
So, it seems retirees may not have the best deal when it comes to paying health insurance premiums – even with heavy taxpayer subsidies – 75% of Part B costs.
QUINNSCOMMENTARY 