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Every year, Medicare's trustees publish a report on the program's finances, and every year most retirees never see it. The 2026 report moved up the date when Medicare's Hospital Insurance trust fund runs short, and it confirms what your premium notices have already been telling you: your share of the cost keeps climbing.
None of this means Medicare stops paying claims. It means the financial cushion is thinner than it was a year ago, and that shows up in premiums before it shows up anywhere else. Here's what actually changed and what to check before Open Enrollment.
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You pay Part B premiums and a separate Medigap premium.
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What Actually Changed in the 2026 Report
The trustees moved the projected depletion date for Medicare's Hospital Insurance trust fund, the part that pays for hospital stays, Part A, up to the second quarter of 2033, a quarter earlier than last year's estimate. Depletion doesn't mean the fund hits zero and stops paying. It means incoming revenue is projected to cover about 89% of Part A costs in 2033 and 87% in 2034, with Congress deciding how to close the rest.
The bigger, slower-moving number is spending growth. Medicare's total cost is projected to grow from about 3.9% of the U.S. economy in 2025 to 6.5% by 2050, and Medicare spending is expected to pass Social Security spending within 11 years. Parts B and D, which cover doctor visits and prescription drugs, already lean heavily on general tax revenue and rising beneficiary premiums to keep up, and the trustees issued their tenth straight warning that this reliance has become excessive.
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The 2027 standard Part B premium is projected near $209.50, up from $202.90 in 2026. See what that looks like next to your other coverage costs.
Your estimated total monthly Medicare cost: $368
Compare this to what you're paying now for Original Medicare plus Medigap. If the gap is large, that's worth a specific question during Open Enrollment, not a guess.
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Why Medicare Advantage Is Part of the Story
About half of Medicare beneficiaries are now enrolled in a Medicare Advantage plan, and the trustees noted that these plans cost Medicare about 14% more per person than Original Medicare. That gap matters because it adds to the same funding pressure driving up everyone's premiums, whether you're in a Medicare Advantage plan or not.
Medicare Advantage plans cost 14 percent more per person than traditional Medicare.
This is also why plan benefits and premiums can shift from year to year even when your health hasn't changed. If your Medicare Advantage plan's extras got smaller or its premium moved this year, that's the same pressure showing up at the plan level.
If a payment change already reached your plan this year, CMS Reversed a Medicare Advantage Payment Cut. Here's What to Watch covers what to look for. If your drug plan premium is the bigger concern, Medicare Part D Premiums Are Rising for 2027. Check Your Numbers Before Open Enrollment walks through the comparison step by step.
If You Have FEHB, Tricare, or Other Coverage Alongside Medicare
If you kept Federal Employees Health Benefits (FEHB) coverage into retirement, Medicare and FEHB coordinate rather than replace each other, and rising Medicare costs can change that math from year to year. The same is true if you have Tricare for Life or retiree coverage through a former employer. None of these decisions are one-size-fits-all, and dropping one type of coverage is sometimes difficult or impossible to undo.
The safest move is a direct question to your specific plan, not a general rule of thumb. Ask what changes for 2027, whether your premium or coverage shifts, and whether keeping both types of coverage still makes sense at your current costs.
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If Tricare is your other coverage, Turning 65 With Tricare? Here's the Medicare Decision to Make walks through that specific coordination.
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Common questions
Does the 2026 Medicare Trustees Report mean Medicare is running out of money?
No. It means the Hospital Insurance trust fund's projected depletion date moved up to the second quarter of 2033. At that point, incoming revenue is still projected to cover the large majority of Part A costs, not zero, and Congress would need to act to close the rest.
How much is the Medicare Part B premium going up in 2027?
The standard Part B premium is projected to rise from $202.90 a month in 2026 to about $209.50 in 2027, roughly a 3.3% increase, though your plan's Annual Notice of Change letter will confirm your actual number.
Does this report affect Medicare Advantage plans too?
Yes. Medicare Advantage plans cost the program about 14% more per person than Original Medicare on average, and about half of all beneficiaries are enrolled in one, so the same funding pressure shows up in Medicare Advantage premiums and benefits as well.
What should I actually do with this information?
Read your Annual Notice of Change letter closely when it arrives by September 30, compare your real numbers against other coverage options during Open Enrollment (October 15 to December 7), and ask a specific question about your own plan instead of reacting to the national trend alone.
