Medicare 2026: Premiums Rise, Drug Costs Increase, but More Plan Options Available
Medicare beneficiaries can expect some changes in 2026, with average Part B premiums rising and out-of-pocket costs for prescription drugs increasing. However, the open enrollment period offers a chance to review and adjust plans.
The average monthly premium for Medicare aidvantage plans with prescription drug coverage is projected to decrease to $14 in 2026. Recipients can choose from about 5,600 plans nationwide. CMS has introduced new website features to aid comparison shopping.
The average Part B premium is estimated to rise to $288 in 2026. Out-of-pocket costs will also increase, with the annual cap on prescription drug costs reaching $2,100 and the maximum annual deductible for Part D coverage set at $615. Six states will use AI-assisted programs to manage coverage approvals for certain Medicare plans.
UnitedHealth, one of the largest providers, plans to increase prices and withdraw from unprofitable contracts in 2026, affecting over 600,000 members. The exact number of available Medicare aidvantage plans is not specified, but the overall count is expected to remain high.
The Medicare open enrollment period begins on October 15 and ends on December 7. Beneficiaries are encouraged to review their current plans and make adjustments during this period to ensure satisfaction with their coverage. Despite some cost increases, the overall number of plans and new comparison tools should help recipients find suitable options.
