If Your Medigap Rising Premiums Scare You - You May Be Equally Concerned About Part B Premiums

[GailL1]

The Street.com 07/08/2025 - Retired workers to see frustrating change to Medicare in 2026 

from the link ~

A Medicare change is coming next year, and your wallet will not like it.

It’s only an estimate — but if history is any guide, it’s one you’ll want to watch.

Tucked deep inside the 267-page 2025 Medicare Trustees report is a projection that the standard monthly Medicare Part B premium could rise to $206.50 in 2026. 

That’s an 11.6% jump from the $185 premium set for 2025 — and it would be the largest single-year increase since 2016, when premiums climbed 16.1%, from $104.90 to $121.80.

This estimate, however, is not the final number. In fact, it could be even higher.

more at the link ~ 

Yes, this is an estimate by these Wall Street numbers folks but this likely estimate is born out by the 2025 Social Security Trustee Report on Medicare Part B or the Supplemental Medical Insurance (SMI) part of the report.

CMS.gov - 2025 ANNUAL REPORT OF THE BOARDS OF TRUSTEES OF THE FEDERAL HOSPITAL INSURANCE AND FEDERAL... 

For those numbers people here begin on page 79 and then pay close attention to the “2. 10-year Actuarial Estimates 2025 - 2034” beginning on page 86 to see how they have determined these forecasted estimates.

How high can these Part B premiums rise - there is not a limit set because it is determine by usage -MEDICARE BENEFICIARY USAGE - and also how much this program has to pay back the General Fund in years where there is NO COLA adjustment but yet Part B usage rises.  Like in 2016 - there was no level of inflation so NO COLA increase to the Social Security benefit in 2016.  So because of the Hold Harmless Provision in the Social Security law, which protects those who pay their Part B premiums out of their Social Security benefit says that your benefit  cannot be lower than it was the year before because of a Part B premium increase, we could not completely pay for Part B in 2016 because the premium amount was restricted by this provision from covering it all.  We have been paying this back since that time incrementally.  Those who do not have their Part B premiums coming out of their benefit are NOT covered by this provision.

We will know this fall the actual 2026 premium amount for Part B and the whatever new deductibles for Part A and Part B.  We will also know the 2026 COLA amount which seems currently at this point to look like around the 2.5% area - but Part B premium cost could be higher - then we will be facing another Hold Harmless problem in properly funding Part B.

We may well get to this situation again in the coming years because we seem to really be using our Part B benefits - millions of us and more going on the rolls everyday. 

Just a cautionary heads up - 

[TRL1111]

I hope AARP puts additional people on staff to handle the complaints that it's AARP's fault.