Medicare beneficiaries face higher costs in 2026 as Part B premiums rise to $202.90 a month, nearly 10% more than this year. The increase will absorb close to one third of the average $56 monthly Social Security cost of living adjustment.
The Part B deductible will climb from $257 to $283. The Part A hospital deductible will rise to $1,736. Coinsurance for extended hospital stays and skilled nursing will also increase.
Healthcare inflation continues to run ahead of fixed incomes, creating broader pressure on retiree budgets.
These developments have pushed more seniors to evaluate the cost of Medicare supplemental insurance. Medigap plans offer stronger protection from large out of pocket expenses, including caps on exposure under Plans K and L and fuller cost sharing coverage under Plans G and N.
Rising premiums add complexity. Medigap rates in many states have increased due to inflation, shifting demographics, and higher claims.
Premiums range from under $100 to several hundred dollars monthly, limiting affordability for some households already facing higher Part B and Part D premiums.
Medigap continues to offer nationwide access to any provider that accepts Medicare. This flexibility stands in contrast to Medicare Advantage plans that may adjust networks and prior authorization rules in 2026.
Medigap, however, does not include prescription, dental, vision, or hearing coverage, requiring additional standalone plans.
Premium variability also remains an issue. Identical Medigap plans can differ in monthly cost by hundreds of dollars between insurers.
Premiums typically rise with age, and switching carriers later often triggers medical underwriting with no guarantee of acceptance.
Medicare’s projected 2026 increases now drive a renewed emphasis on coverage decisions, with seniors weighing stronger financial protection against growing premium burdens.
U.S. health insurers administering state Medicaid coverage will encounter revenue pressure from OBBBA, which Beinsure expects to weigh on earnings.
New work requirements could increase acuity in the Medicaid pool, requiring states to raise capitation rates to maintain already thin profit margins in this segment.
Over time, heightened market uncertainty and insufficient returns may lead to industry consolidation and exits from unprofitable markets.
Medicaid enrollment stood at 78.6 mn, comprising 71.3 mn in Medicaid and 7.3 mn in the Children’s Health Insurance Program (CHIP).
Medicaid will experience a sharp drop in enrollment and premium revenue under the One Big Beautiful Bill Act (OBBBA) as stricter, more frequent eligibility reviews and new work requirements take effect in expansion states by the end of 2026 (see US Health Insurance Market Trends: Rates, Price and Coverage).
According to Beinsure, a new bill moving through Congress takes direct aim at health insurers. The Patients Over Profits Act would bar carriers and their subsidiaries from owning any Medicare Part B or Part C providers, a move lawmakers say is designed to protect patient care from Wall Street profit grabs.
Supporters argue the measure closes a loophole that’s allowed insurers to purchase local clinics, consolidate providers, and extract profit while patient services decline.
The bill also forces divestitures. Any company failing to comply could face civil action from the Federal Trade Commission, state attorneys general, the HHS inspector general, or the Justice Department’s antitrust chief.
Lawmakers added another twist: the Department of Health and Human Services would be blocked from contracting with Medicare Advantage organizations that also own Medicare Part B or Part C providers. The logic is blunt. By linking ownership to lost revenue opportunities, carriers lose the incentive to buy clinics in the first place.









