Medicare is a cornerstone of retirement planning, but its complexity can leave many retirees feeling overwhelmed. In this episode, host John Bryson, head of investment consulting, investment data analytics, and education savings at Manulife John Hancock Investments, welcomes Danielle to break down the Medicare essentials you need to know for 2026 and beyond.
Danielle, author of the book 10 Costly Medicare Mistakes You Can’t Afford to Make, discusses the latest expected changes to Medicare. She emphasizes the importance of early research and understanding the difference between supplemental plans, such as Medicare Advantage plans and Medicare Supplement Insurance (Medigap). She also offers strategies to help avoid higher Income-Related Monthly Adjustment Amount (IRMAA) surcharges.
Here’s a snippet from the conversation:
1 What changes are expected to Medicare in 2026?
Danielle: While we don’t have some Medicare figures due to the government shutdown, we can expect Part B premiums to increase a bit. Projections suggest they could rise to $206 next year. Another major change stems from the Inflation Reduction Act of 2022, which led several carriers to exit the Part D market. As a result, about 2 million people are likely to lose their Medicare Advantage plans. If you’ve received a notice that your plan is exiting the market, it’s important to shop for a new plan promptly to ensure you have coverage in place for January 1.
2 What’s IRMAA and how does it affect Medicare costs?
Danielle: IRMAA is a surcharge on Medicare Part B and Part D, based on your income. While the base rate in 2025 is $185, an IRMAA surcharge will increase that amount. As a result, Part B premiums for people in really high-income brackets can increase to over $600 per month. So, decisions you make at ages 63 and 64 can affect your Medicare premiums at 65 and 66. It’s wise to work with your financial advisor to plan ahead to explore spreading out income or avoiding large distributions that may help prevent higher premiums later.