Costs & IRMAA
KFF: Medicare Cost-Sharing Consumed More Than a Third of Average Social Security Income in 2023
A new KFF brief, released five days before open enrollment begins, assembles 2026 premiums, deductibles, and out-of-pocket limits across traditional Medicare, Medicare Advantage, and Part D in one place.
By the Goodsurance editorial teamOctober 10, 2026
With the Medicare annual enrollment period opening October 15, KFF published a comprehensive cost overview on October 9, 2026, showing that combined premiums and cost-sharing consumed more than 36 percent of average Social Security income in 2023 for people in traditional Medicare.
The standard Part B premium in 2026 is 202 dollars and 90 cents per month, with higher-income enrollees paying up to 689 dollars and 90 cents. The Part A deductible is 1,736 dollars per hospital stay, and the annual Part B deductible is 283 dollars. Traditional Medicare carries no annual out-of-pocket maximum.
Medicare cost-sharing took more than 36 percent of average Social Security income in 2023, and KFF's new brief shows the full 2026 picture just before open enrollment begins.
Medicare Advantage plans carry an average in-network out-of-pocket limit of 5,421 dollars in 2026. Federal rules allow those caps to reach as high as 9,250 dollars for in-network services or 13,900 dollars when both in-network and out-of-network costs are counted together.
Stand-alone Part D drug plans carry an average premium of 36 dollars per month, a standard deductible of 615 dollars, and an annual out-of-pocket drug cap of 2,100 dollars.
About one in four Medicare beneficiaries had incomes below 24,600 dollars per year as of 2024. The brief notes that Extra Help for Part D and state Medicaid programs can reduce or eliminate cost-sharing for lower-income enrollees.
The report does not advise which coverage type to choose. It frames the cost data as background for beneficiaries comparing plans during the open enrollment window, which runs through December 7.
In plain words
A new report lays out all the costs you might face in Medicare this year.
Most people pay about 202 dollars and 90 cents per month for Part B. If you go to the hospital, there is a charge of 1,736 dollars before Medicare pays its share. Regular Medicare has no yearly limit on what you could owe in total.
Medicare Advantage plans set a yearly spending cap. On average, that cap is 5,421 dollars for care in your plan's network.
For drug coverage alone, the average monthly premium is 36 dollars, and the most you would pay for covered drugs in a year is 2,100 dollars.
About 1 in 4 people on Medicare earned less than 24,600 dollars a year as of 2024. Programs like Extra Help and state Medicaid can lower or remove many of these costs for people with lower incomes.
Open enrollment runs October 15 through December 7.
Understand the basics first
Source: KFF
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