August 2026
The recently released 2026 Medicare Trustees Report offers more than a snapshot of Medicare’s finances—it provides valuable perspective on the healthcare cost trends that may influence retirement planning for years to come.
The Numbers Behind Medicare’s Financial Outlook
Medicare Part A (Hospital Insurance)
The Trustees project that the Hospital Insurance Trust Fund will be depleted in 2033—just seven years away. Without Congressional action:
- Payroll tax revenue would cover only 89% of scheduled Part A benefits.
- Medicare’s financial reserves would be exhausted.
- Restoring long-term solvency would require significant action, including:
- Increasing the Medicare payroll tax from 2.9% to 3.46%, or
- An estimated 12% reduction in Part A benefits for current and future beneficiaries.
Medicare Part B (Medical Insurance)
While Part B is expected to remain financially stable, the cost of maintaining the program continues to climb. Current projections estimate:
- Part B premium: $360/month by 2035
- Part B deductible: $503 by 2035
These increases reinforce the importance of building realistic healthcare expenses into retirement income projections.
Annual Enrollment Period Is Approaching
October 15 – December 7
Significant plan changes are expected again this year with many beneficiaries likely facing higher costs, changes in benefits and provider network disruptions.
Medicare Part D: Subsidies Ending in 2027
A recent announcement confirmed that the temporary federal subsidies supporting Medicare Part D prescription drug plans will end in 2027.
As insurers assume a greater share of prescription drug costs, beneficiaries should expect continued adjustments to Part D plans, including:
- Higher monthly premiums
- Higher copays and cost sharing
- Changes to formularies (covered drugs)
- Changes in drug tier placement that may affect out-of-pocket costs
Colorado PERA Clients
2027 brings important changes for PERACARE participants. Insurance carriers and plan options are changing, making this an ideal time for clients to evaluate whether PERACARE continues to be their best choice.
Some retirees may find that an individual Medicare plan better aligns with their healthcare needs and budget.
Plan details will be released October 1.
Your Medicare Resource
| As an independent Medicare insurance broker, I work alongside financial advisors by providing objective, education-focused Medicare guidance. I help clients: – Compare Medicare Supplement, Medicare Advantage and Part D plans – Navigate Annual Enrollment with confidence – Evaluate plan changes without carrier bias Your clients benefit from specialized Medicare expertise, while you remain focused on their broader financial plan. If you have clients turning 65, retiring or facing Medicare decisions this fall, I’d be happy to be a trusted resource for both you and your clients. |
| Jenell Sobas, FPQP® Independent Broker and Agency Owner | Key2Medicare Insurance [email protected] | 303-484-1763 key2medicare.com |