Medicare 2026

What the 2026 Medicare Trustees Report Says About the Part A Trust Fund

Every year, the people who oversee Medicare's finances publish a report on where the program stands. The 2026 edition — the 61st — was sent to Congress on June 9, 2026, and it offers the clearest picture we have of what's ahead for the Hospital Insurance (Part A) trust fund. If you have Medicare now, or you're getting ready to enroll, here's a plain-English look at what the report says and what it means for your day-to-day coverage.

What the report actually projects for Part A

Part A covers inpatient hospital stays, skilled nursing facility care after a qualifying hospital stay, hospice, and some home health care. It is funded mostly through payroll taxes and sits in its own trust fund.

Under the Trustees' intermediate (middle-of-the-road) assumptions, that trust fund is projected to be depleted in the second quarter of 2033 — one quarter earlier than the 2025 report estimated. "Depleted" is a technical term: it means the dedicated reserves run out, not that Part A disappears.

The report projects that when depletion arrives in 2033, ongoing payroll tax and premium revenue would still be enough to pay 89% of scheduled Part A benefits. That share drops to about 85% in 2050 and recovers to roughly 93% by 2100.

Under current law, if the fund were ever depleted, Part A payments would have to be scaled back to what incoming revenue could cover. The Trustees point out, however, that lawmakers have never allowed the Hospital Insurance trust fund to become depleted in the program's history.

To illustrate the size of the long-term gap, the report offers a sample fix: Part A could remain solvent for the full 75-year window through 2100 if, starting in January 2026, the Medicare payroll tax rate rose from 2.90% to 3.46%, or if scheduled benefits were cut by 12.0%. Those are illustrations, not proposals.

For the ninth year in a row, the Trustees also issued a formal "Medicare funding warning." Under federal law, that warning requires the President to propose responsive legislation within 15 days after the Fiscal Year 2028 Budget submission, which Congress considers on an expedited basis.

What the report says about Parts B and D

The Supplementary Medical Insurance trust fund — which pays for Part B (doctor visits, outpatient care) and Part D (prescription drugs) — is expected to be adequately financed over the next 10 years and beyond. That's because premium income and the federal government's share are reset each year to cover expected costs. The Trustees caution that this financing has to keep growing faster than the overall economy, which puts pressure on the federal budget and on beneficiaries' premiums over time.

A snapshot of who Medicare serves

During 2025, an estimated 69.3 million people were enrolled in Medicare — 62.2 million aged 65 and older and 7.1 million with disabilities. About 51% had chosen a private Part C (Medicare Advantage) plan rather than Original Medicare.

What this means for you right now

Nothing in the Trustees Report changes your benefits today. Part A hospital coverage, Part B outpatient coverage, and Part D drug coverage continue as scheduled. Here are the things that are actually in motion for the coming year:

• Annual Enrollment runs October 15 – December 7, 2026, with changes taking effect January 1, 2027.
• The Part D out-of-pocket cap is $2,100 in 2026 and will be $2,400 in 2027.
• The most any Part D plan may charge as a deductible in 2027 is $700.
• The Part D base beneficiary premium for 2027 is $41.33 — a national figure used to calculate the late-enrollment penalty. Actual plan premiums are set plan by plan.
• Social Security announced a 3.6% cost-of-living adjustment effective with January 2027 benefits.
• CMS has not yet announced the 2027 Part B standard premium, Part B deductible, or the IRMAA income brackets. Those are usually released in the fall. Check Medicare.gov when they post.

If you have Medicaid or Extra Help

Since 2025, there's a monthly Special Enrollment Period that lets you move from Medicare Advantage to Original Medicare with a stand-alone Part D plan, or switch stand-alone Part D plans, once per month. If you have full Medicaid along with Medicare, you can also join an integrated Dual Eligible Special Needs Plan (D-SNP) in any month.

Thinking about coverage choices

The report is a reminder to review your coverage during Annual Enrollment. Many people compare Medicare Advantage with Original Medicare paired with a Medigap policy and a stand-alone Part D plan. Each path has trade-offs: Medicare Advantage plans often bundle drug coverage and extra benefits with network rules and prior authorization; Original Medicare plus Medigap typically offers broader provider choice and more predictable cost-sharing, but you pay a separate Medigap premium and add Part D separately. Neither is "better" in the abstract — it depends on your doctors, your prescriptions, your budget, and how you like to get care.

Where to go next

For official program information, costs, and the 2027 Part B figures when they're announced, visit Medicare.gov or call 1-800-MEDICARE (1-800-633-4227), available 24/7. This article is educational and not affiliated with any government agency.