5 Strategies to Keep Your Retirement Healthcare Costs Manageable in 2026

Healthcare is one of the trickiest expenses to budget for in retirement. You know you'll need it, but you don't know exactly when or how much it'll cost. That's why it's important to have good health insurance to help you cover your bills.

If you're 65 or older, Medicare will likely form the backbone of your retirement healthcare plan, but it's often not enough by itself. You'll need some of the following five strategies if you really want to keep your healthcare costs as low as possible in 2026.

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1. Review your Medicare plan options during the open enrollment period

Medicare's annual open enrollment is nearing its end, but you still have a little time to compare plan options for 2026. Start by taking stock of your current coverage and of what changes are coming next year.

Original Medicare's costs are increasing. Part A will carry a deductible of $1,736 in 2026, while Part B's will hit $283. Part B premiums will also rise from $185 per month in 2025 to around $203 in 2026. If you have a Part D or Medigap plan, these costs may also rise. Your plan provider should have sent you a notice explaining what's changing for 2026.

Compare your current coverage to all available plans for next year. Remember to consider both cost and coverage: A cheap plan might seem like a good deal, but if it excludes important medications or treatments that you need, it could ultimately cost you more.

If you want to switch plans, you must elect a new option by Dec. 7, 2025, at the latest. Otherwise, you may have to wait until next October to change your policy.

2. Look into supplementary policies

Original Medicare has gaps, so you'll likely need additional policies for comprehensive coverage. There are different ways to handle this. You can buy a Part D plan for prescription drug coverage and pair this with a Medigap (Medicare supplement) plan. Private insurers offer these to cover services that Original Medicare doesn't.

You could also opt for a Medicare Advantage plan. These are also available through private insurers. They are alternatives to Original Medicare, covering everything in Original Medicare and then some. This could be the way to go if you only want to worry about one set of costs.

You might also want to investigate stand-alone policies for services like dental and vision care. You may be able to purchase these outside of the annual open enrollment period.

3. Use coupons for prescription drugs

Do some digging, and you'll find prescription discount services that offer free coupon codes you can use to reduce your out-of-pocket prescription drug costs. In some cases, all you need to do is search for your medication, find the code, and present it to the pharmacist when it's time to pay.

Some prescriiption drug services also enable you to compare prices at nearby pharmacies, helping you find the ones that offer the most affordable medications. This could result in additional savings if you're willing to be flexible about where you fill your prescriptions.

4. Apply for Medicaid

Low-income seniors may qualify for both Medicaid and Medicare. You'll need to apply and provide information on your income and assets for the government to determine your eligibility.

If you qualify, your state will pay your Medicare Part B premiums, and possibly the cost of certain drugs and services that Original Medicare doesn't cover. You'll also get Extra Help automatically. This program helps low-income seniors afford their prescription drugs.

You'll need to contact your state health or social services agency to see if you qualify for Medicaid. This process can take some time, so it's best to get started right away if you think you'll need extra assistance with your healthcare costs next year.

5. Take advantage of free preventive and screening services

Medicare offers several free preventive and screening services, including screenings for cardiovascular disease, diabetes, and cancer, as well as certain vaccines. These services can help you correct problems early before they develop into more serious -- and more costly -- health conditions.

These strategies may not all be a good fit for you, and that's OK. Pick the ones that work for you right now, and note the others for later in case you find your healthcare costs getting a bit out of hand.

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