How to Lower Your Medicare Part B Premium (IRMAA & Giveback) - Watch on YouTube
Understanding Medicare costs helps you avoid surprises and find savings. Here's what you'll pay in 2026 — and a lesser-known benefit that can actually put money back in your pocket.
Premium-free for most (if you or a spouse paid Medicare taxes ~10 years). You may owe a hospital deductible per benefit period.
A standard monthly premium plus an annual deductible, then typically 20% coinsurance. Higher earners pay more (see IRMAA below).
Drug plan premiums vary by plan. There's a yearly deductible on many plans, then copays based on the drug tier.
Medigap adds a premium but slashes out-of-pocket costs. Advantage often has a low/$0 premium with copays as you go.
The Income-Related Monthly Adjustment Amount (IRMAA) is a surcharge added to your Part B and Part D premiums if your income is above certain thresholds. It's based on your tax return from two years prior. If your income has dropped since then (say, from retiring), you can appeal IRMAA — something we help people do.
Certain Medicare Advantage plans include a "giveback" that pays part of your Part B premium back — effectively reducing what's deducted from your Social Security check. It's officially called a Part B premium reduction.
Giveback plans aren't available everywhere and aren't always the best overall value — a plan with a giveback but a weak network or high copays may cost you more in the end. It's one factor among many. We help you weigh whether a giveback plan actually makes sense for you.
Original Medicare alone has no annual out-of-pocket maximum. That 20% Part B coinsurance keeps going with no cap — so one serious illness could mean enormous bills. This is the single biggest reason people add a Medigap plan (which covers that 20%) or choose a Medicare Advantage plan (which has an out-of-pocket cap). Understanding your true cost exposure — not just premiums — is where we help most. Compare your options with a full Advantage vs Medigap breakdown.