Medicare Part A Hospital Costs Rise in 2026: Implications for Seniors and Medigap Coverage

Medicare Part A, which covers hospital care for seniors, is seeing cost increases in 2026 affecting inpatient deductibles and coinsurance rates. The inpatient hospital deductible will rise from $1,676 in 2025 to $1,736 in 2026, covering the first 60 days of a hospital stay. Beyond 60 days, daily coinsurance rates will also increase, with rates going from $419 to $434 for days 61 through 90, and from $838 to $868 for lifetime reserve days beyond 90 days. Skilled nursing facility (SNF) coinsurance rates will increase from $209.50 to $217 per day for stays beyond 20 days, applying up to 100 days of care. These rising costs underscore the financial impact on Medicare Part A enrollees, particularly those with limited incomes relying mainly on Social Security benefits. Medigap, or Medicare supplement insurance, can help offset these increasing out-of-pocket expenses by covering deductibles and coinsurance costs. The best opportunity to enroll in Medigap without health underwriting is within the initial six-month window after turning 65 and enrolling in Medicare Part B, as enrollment later may result in higher premiums or denial due to preexisting conditions. Awareness of these cost changes and supplemental insurance options is critical for Medicare beneficiaries to manage potential hospital-related expenses in retirement effectively.