This Medicare premium just crossed $200 a month for the first time. Here’s why.

Core Insights - Medicare Part B premiums will increase by 9.7% in 2026, rising to $202.90 from $185.00 in 2025, primarily due to medical inflation and a growing number of individuals requiring expensive care [1][2] Medicare Spending Growth - The government attributes the largest-ever dollar increase in premiums to projected growth in overall healthcare spending, with Medicare spending expected to rise by 8.9% in 2026 and 2027, surpassing the general health spending growth of 5.6% [2] Key Cost Drivers - Physician-administered drugs, such as Merck's Keytruda and Regeneron's Eylea, represent a significant portion of Medicare Part B spending, although fluctuations in individual drug costs are not expected to significantly impact premiums in 2026 [3] Premium Calculation Factors - The Centers for Medicare and Medicaid Services (CMS) determines Part B premiums based on projected spending and the status of the Medicare trust, which can include adjustments for higher-than-expected spending from the previous year [4] Influencing Factors for Medicare Spending - Various factors can affect Medicare spending, including the introduction of expensive new drugs and the rising costs associated with managed care, particularly as more individuals opt for Medicare Advantage plans [5] Demographic Trends - An aging population is leading to increased healthcare needs and costs, with many individuals still seeking care that was delayed during the pandemic [6]