Does Medicare Cover Cancer Treatment? A 2026 Guide to Chemo, Radiation, Drugs, and Costs

Which Part of Medicare Pays for Cancer Treatment?

Cancer care touches almost every part of Medicare. Knowing which part pays for what helps you understand the bills you will receive and where your costs come from.

In short: where you receive care, and whether a drug is given by a provider or filled at a pharmacy, decides which part of Medicare pays.

• Part A (hospital insurance) covers inpatient cancer care, including hospital stays, inpatient surgery, chemotherapy given while you are admitted as an inpatient, and inpatient radiation therapy.
• Part B (medical insurance) covers outpatient cancer care: chemotherapy in a doctor's office, clinic, or hospital outpatient department; outpatient radiation therapy; doctor visits; lab tests; and imaging.
• Part B also covers certain provider-administered cancer drugs and some oral anti-cancer drugs (more below).
• Part D (prescription drug coverage) covers most cancer drugs you fill at a pharmacy, including most oral chemotherapy and supportive medications that Part B does not cover.
• A Medigap (Medicare Supplement) policy or a Medicare Advantage plan can change what you pay out of pocket, but the underlying coverage rules come from these parts.

Chemotherapy and Radiation: What You Pay in 2026

Both chemotherapy and radiation therapy are covered by Medicare. Your cost depends on whether you are treated as a hospital inpatient or as an outpatient.

• Inpatient chemotherapy or radiation (Part A): you pay the Part A deductible of $1,736 per benefit period in 2026, plus any applicable coinsurance. Most people pay no Part A premium if they have 40+ quarters of Medicare-covered work.
• Outpatient or office/clinic chemotherapy (Part B): after you meet the 2026 Part B deductible of $283, you pay 20% of the Medicare-approved amount.
• Outpatient or freestanding-clinic radiation therapy (Part B): the same 20% coinsurance applies after the Part B deductible.
• Hospital outpatient copayment cap: if you get chemotherapy in a hospital outpatient setting, your copayment for a single service will not be more than the inpatient hospital deductible amount.
• You must keep paying the 2026 standard Part B premium of $202.90/month to keep Part B, which covers most outpatient cancer care.

Cancer Drugs: Part B vs. Part D and the $2,100 Cap

How your cancer drugs are covered depends on the drug and how it is given. This is one of the most confusing parts of cancer billing, so it is worth understanding before treatment starts.

Newer treatments such as immunotherapy and targeted therapy are generally covered when they are medically necessary, but whether they fall under Part B or Part D depends on the specific drug and how it is administered. Ask your oncology team and your drug plan how each medication will be billed.

• Part B covers many provider-administered cancer drugs (for example, infused or injected chemotherapy) at 20% coinsurance after the Part B deductible.
• Part B also covers some oral (taken-by-mouth) anti-cancer drugs if the same drug is available in injectable form, or is a prodrug of the injectable drug; you pay 20% after the Part B deductible.
• Part D covers many cancer drugs that Part B does not, including most oral chemotherapy and supportive drugs (such as anti-nausea medications you fill at a pharmacy), if you have a Medicare drug plan.
• The 2026 Part D out-of-pocket maximum is $2,100/year. Once your out-of-pocket spending on covered Part D drugs reaches $2,100, you pay nothing more for covered drugs for the rest of the year.
• The $2,100 cap applies only to Part D drugs. It does not cap what you pay under Part B for provider-administered cancer drugs, and Original Medicare has no out-of-pocket cap on Part A or Part B services.

Surgery, Prostheses, Clinical Trials, and Hospice

Medicare cancer coverage goes well beyond chemo and radiation. Here is how some other common needs are handled.

• Cancer surgery and hospital stays: inpatient surgery is covered under Part A (you pay the $1,736 deductible per benefit period, with $434/day coinsurance for days 61-90 and $868/day for lifetime reserve days in 2026). Outpatient surgery and doctor services are covered under Part B at 20% after the deductible.
• Breast prostheses after a mastectomy: Part B covers external breast prostheses and a post-surgical (surgical) bra, as well as surgically implanted prostheses done in an outpatient setting (Part A covers surgically implanted prostheses if done as an inpatient); you pay 20% of the Medicare-approved amount after the Part B deductible.
• Clinical trials: Medicare covers the routine costs of qualifying clinical trials, including cancer trials, plus items and services needed to treat complications. Standard Part A/B cost-sharing applies. The investigational item itself and services provided only for data collection are not covered as routine costs.
• Hospice care: the Medicare hospice benefit for terminally ill cancer patients is covered under Part A. Even if you have a Medicare Advantage plan, Original Medicare helps cover your hospice costs.
• Cancer screenings: a screening mammogram (every 12 months for women 40+), Pap test and pelvic exam (every 24 months, or every 12 months if high risk), low-dose CT lung cancer screening for eligible high-risk people ages 50-77, and colorectal cancer screening tests cost you nothing when the provider accepts assignment.

Limiting Your Out-of-Pocket Costs

This is the most important point for anyone facing cancer treatment: Original Medicare (Parts A and B) has no annual out-of-pocket maximum. Because cancer care can involve months of 20% coinsurance on expensive infusions, imaging, and hospital stays, your costs can add up with no ceiling unless you have additional coverage.

Two common ways to limit that exposure are a Medigap (Medicare Supplement) policy or a Medicare Advantage plan that includes an annual out-of-pocket maximum (MOOP). A Medigap policy works alongside Original Medicare and can pay most or all of your Part A and Part B coinsurance, while a Medicare Advantage plan bundles your coverage and caps your in-network out-of-pocket costs. What each option covers and costs varies by plan and by state, so compare carefully and confirm details in the plan's official documents before enrolling.

• Higher-income enrollees pay IRMAA surcharges on top of Part B and Part D premiums. In 2026, IRMAA applies above a modified adjusted gross income (MAGI) of $109,000 single / $218,000 joint (based on 2024 income). Total Part B ranges from $284.10 to $689.90/month, and the Part D surcharge ranges from $14.50 to $91.00/month.
• Enrolling in Part B late triggers a lifelong penalty: 10% added to your premium for each full 12-month period you were eligible but did not sign up, for as long as you have Part B. Because Part B covers most outpatient cancer treatment, a gap in Part B can be costly if you are later diagnosed.
• If you have a Medicare drug plan, the 2026 Part D out-of-pocket cap of $2,100 protects you on covered prescription cancer drugs. The national base beneficiary premium for Part D is $38.99/month in 2026.