3 2026 Medicare Changes Every Retiree Should Know

You count on Medicare to help keep your retirement healthcare expenses manageable, but it can still be challenging. Costs change over time, and services and treatments might be covered in one year and not in the next.

Staying informed is crucial if you want to minimize your out-of-pocket expenses in 2026. You may already be aware of some differences you'll face next year, especially if you chose a new plan during the open enrollment period. But if not, here are three important changes all Medicare beneficiaries should be aware of as we approach the new year.

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1. Premiums and deductibles are increasing

Original Medicare's Part A (hospital insurance) doesn't carry a premium for most Americans, and that won't change in 2026. But those who need to take advantage of this coverage will face a $1,736 deductible next year, up from $1,676 in 2025.

Part B expenses are also increasing. Premiums are set to reach $202.90 per month for the majority of Medicare beneficiaries. However, some wealthy seniors could pay as much as $689.90 in 2026. The Part B deductible will hit $283, up from $257 in 2025.

It's likely your Medicare Advantage plan or Part D plan costs could also rise. However, private insurers set these rates, so the increase could vary. Your plan provider should have sent you a notice outlining what you'll pay next year.

2. You could pay more out of pocket for prescription drugs

In 2025, those on Part D plans only had to pay a maximum of $2,000 out of pocket for their prescription drugs. After reaching this limit, the copayment disappeared, though seniors still had to pay their Part D premiums.

Due to rising drug costs, the ceiling on out-of-pocket prescription drug costs will increase to $2,100. This might not affect you if you take a few or no prescription drugs. However, if you're on several medications or require expensive ones, it'll be especially important to adjust your budget to accommodate this change.

3. Negotiated rates on 10 prescription drugs take effect

Beginning Jan. 1, 2026, Medicare beneficiaries with Part D plans will pay lower negotiated rates on 10 common prescription medications. The following table lists the included drugs and the savings seniors can expect next year:

Data source: Center for Medicare and Medicaid Services.

Other drug prices may still fluctuate or increase throughout 2026. However, you may be able to keep these costs manageable by comparing rates from a few pharmacies in your area.

Look out for other changes unique to your plans

The above changes apply to all individuals enrolled in Original Medicare. But if you have other policies, like a Medicare supplement (Medigap) policy or you've opted for a Medicare Advantage plan instead, you could be facing additional changes next year.

Your insurer should have sent you a notice outlining your 2026 costs and what medications, services, and treatments are covered and not covered. If you have any questions about this, reach out to the insurer as soon as you can. Once you have a better idea of how much you'll pay out of pocket for the services you need, you'll be able to start planning your retirement healthcare budget for next year.

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