Medicare Part B Fact Sheet

What is Medicare Part B?
Medicare Part B is medical insurance. It helps cover doctor visits, outpatient care, preventive services, and durable medical equipment.

What Part B Covers

  • Doctor’s visits

  • Outpatient services

  • Preventive care (screenings, vaccines, etc.)

  • Lab tests and imaging

  • Durable medical equipment

Costs (2026)

Standard premium: $202.90/month (higher if income-based surcharges apply) CMS

Deductible: $283 per year CMS

Coinsurance: 20% for most services after the deductible Medicare

(After you pay the annual Part B deductible, Medicare typically pays 80% of the Medicare-approved amount for most covered services, and you pay the remaining 20%.)

Part B

Late Enrollment Penalty

If you delay enrolling in Medicare Part B when you’re first eligible and you don’t have creditable coverage, your monthly premium increases by 10% for every full 12-month period you could have had Part B but didn’t enroll.

This penalty is permanent and is added to your Part B premium for as long as you have Part B.

Lisa’s Story: Lisa delayed signing up for Medicare Part B for 3 years after she was first eligible. Because of that delay, she has a 30% late enrollment penalty.

In 2026, the standard Part B premium is $202.90 per month. Lisa pays about $60.87 more each month (30% of the standard premium), for a total of about $263.77 per month — and this penalty lasts for life.

How Income Affects Your Medicare Part B Cost

Medicare Part B does not cost the same for everyone. People with higher income usually pay more each month. Medicare looks at your 2024 tax return to set your 2026 cost.

💙 Standard Part B Cost $202.90 per month

This is the most common Part B cost.

This usually applies if your 2024 income was:

$109,000 or less (filed single), or

$218,000 or less (filed jointly), or

$109,000 or less (married & filing separately)

Most people fall into this group.

💙 Higher Income Level $284.10 per month

This applies if your 2024 income was:

$109,001 – $137,000 (filed single), or

$218,001 – $274,000 (filed jointly)

This often happens when:

You worked a little longer than planned

You had a raise or bonus

You took extra money from retirement savings

💙 Highest Income Levels $649.20 per month

This applies if your 2024 income was:

$205,001 – $499,999 (filed single), or

$410,001 – $749,999 (filed jointly), or

$109,001 – $390,999 (married & filing separately)

A Few Important Things to Know

  • Medicare looks at income from two years ago

  • Even $1 over a limit can raise your cost

  • The higher cost usually lasts 12 months

  • Most people see this taken out of Social Security

This extra cost is called IRMAA.
It is not a penalty.

💙 Higher Income Level $405.80 per month

This applies if your 2024 income was:

$137,001 – $171,000 (filed single), or

$274,001 – $342,000 (filed jointly)

Common reasons include:

A retirement payout

Selling investments

Large IRA or 401(k) withdrawals

Even one high-income year can cause this.

💙 Highest Income Levels $689.90 per month

This applies if your 2024 income was:

$500,000 or more (filed single), or

$750,000 or more (filed jointly), or

$391,000 or more (married & filing separately)

These are the highest Part B costs.

Common Reasons Costs Go Up

These things often cause higher Part B costs:

  • Retiring and getting a payout

  • Selling a home or property

  • Taking out a large amount from retirement savings

  • Making a big profit on an investment

This is why planning ahead helps.

💙 Higher Income Level $527.50 per month

This applies if your 2024 income was:

$171,001 – $205,000 (filed single), or

$342,001 – $410,000 (filed jointly)

This may happen if:

You delayed retirement

You had two incomes part of the year

You sold property

This cost lasts the full year.

Can This Be Lowered?

Sometimes, yes.

If your income dropped because of:

  • Retirement

  • Fewer work hours

  • Divorce

  • Death of a spouse

You may ask Social Security to review it.
You must fill out a form and show proof.

Important Notice

This information is for educational purposes only. It is not affiliated with or endorsed by Medicare or the U.S. government. Medicare costs can change each year. Social Security makes the final decision using your tax return. For official details, visit Medicare.gov or contact Social Security.