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How Much More Will Medicare Cost in 2027? Here's the Latest Estimate

New projections indicate Medicare Part B premiums may increase in 2027.

By Sara Albertelli , Edited by Laura Hohenstein

Updated Aug. 4, 2026

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New figures on 2027 Medicare costs might impact your retirement plan and your monthly budget. The 2026 Medicare Trustees Report shares estimates for Medicare Part B premium increases, though at this point the figures are still just projections.

Here's what Medicare costs could mean for your budget, your Social Security cost-of-living adjustment (COLA), and your wallet in 2027.

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The projected 2027 Medicare Part B premiums

According to the 2026 Medicare Trustees Report, the standard Part B premium may increase from $202.90 in 2026 to $209.50 in 2027. That's an increase of approximately $6.60 a month, or 3.25%.

The 3.25% increase is the smallest percentage increase since 2023, giving Medicare enrollees some relief from steep price increases. It's also much smaller than the nearly 10% hike between 2025 and 2026, when premiums went from $185 to $202.90 per month. Enrollees also faced a 14.55% premium hike in 2022.

The projected 2027 premium is lower than what was projected in the 2025 report. The 2025 report projected a 2027 premium of $218.60, and the newest estimate is roughly $9 lower than that initial projection.

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Projections for future premium increases

After having weathered numerous steep increases over the past few years, the slight 3.25% increase in premiums comes as welcome relief. However, the Medicare Trustees Report projects that the relief won't last, as Medicare Part B premiums are predicted to rise faster over the next eight years.

According to the report, premiums may reach $272.10 per month by 2031, and by 2035, they may reach $360.60.

The factors behind Medicare premium increases

The report indicates that growing health care spending is behind the premium increases, including the increases projected over the next eight years. Additionally, beneficiaries are using their Medicare insurance at a higher rate, and overall medical and outpatient treatment costs are increasing, too. To make up for the difference, Medicare premiums increase.

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How Medicare Part B premiums could impact Social Security benefits

Higher Medicare Part B premiums could eat into enrollees' Social Security benefits. Since premiums are often deducted directly from Social Security checks, even a slight premium increase could eat away at 2027's COLA.

The COLA is designed to ensure that Social Security benefits keep up with inflation, but many people suggest that the formula used to calculate the COLA doesn't accurately reflect the expenses seniors face. The COLA is calculated using Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) data. Since CPI-W data focuses on the spending habits of people actively working, it may underweight expenses that seniors often face, like health care costs. Health care costs in the United States often outpace inflation, meaning even though Social Security benefits may increase, retirees may lose some of their benefits' buying power to inflation.

That's why growing Medicare Part B premiums may further reduce the COLA's ability to ensure that benefits keep up with inflation. It also means that some of the most vulnerable individuals who depend on Social Security for their retirement income may be highly impacted; these individuals may rely on their benefits more than most, but a larger portion of their benefits go to pay for Medicare because health care costs are increasing so rapidly.

How higher earners might be affected

The Part B increase to $209.50 per month reflects the standard premium, which the majority of the population pays. High earners may pay more through the Income-Related Monthly Adjustment Amount (IRMAA), which is also projected to increase.

In 2026, high earners paid the standard premium plus an additional amount, which ranged from $81.20 for individuals with annual incomes from $109,000 and $137,000, to $487 for individuals with annual incomes at or above $500,000.

Income thresholds haven't yet been released for 2027, but the first bracket might start around $112,000 for individuals. The bracket might start around $224,000 for married couples filing jointly.

IRMAA uses a two-year income lookback, meaning a taxpayer's 2025 tax return, including Roth conversions or capital gains, determines their 2027 IRMAA surcharge. So high-income Medicare enrollees may only now see the impacts of their income from previous years. Taxpayers may complete form SSA-44 if they've experienced a life-changing event that significantly cut their income since they filed their 2025 return.

Bottom line

The premiums, deductibles, and IRMAA brackets are just projections at this time, and official figures are often released around November. Until then, treat these figures just as estimates, since final figures still could be slightly higher or lower.

Knowing that you may face a higher Medicare Part B premium gives you some time to plan. This is the time to revisit your budget to see how it holds up if you have to pay higher health insurance premiums. With Part B premiums projected to rise fairly significantly over the next eight years, it's also a good idea to calculate your budget over the coming years and revise your retirement plan now, if needed, to prepare for those expenses.

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