Medicare Advantage enrollees face permanent restrictions switching to Medigap, risking $1,736 hospital deductibles as costs rise.
Medicare Advantage plans may permanently block enrollees from switching to Medigap supplements, exposing them to a $1,736 Part A hospital deductible in 2026. The deductible, up from prior years, mirrors the exact cost Medigap policies cover for a fixed premium, leaving retirees vulnerable to surprise bills.
Part B premiums rose to $202.90 monthly in 2026, a $17.90 increase from $185.00 in 2025, while the annual deductible climbed to $283 from $257. The personal savings rate fell to 3%, tightening budgets as Social Security’s 2.8% COLA lagged rising healthcare costs.
Roughly 65 million Medicare beneficiaries face enrollment decisions annually, with Advantage plans marketed as cost-effective but carrying long-term financial risks if health needs change.