3 2026 Medicare Changes Every Retiree Should Know
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These could have a big effect on your retirement healthcare budget next year.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. Image source: Getty Images. 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.Advertisement 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: Prescription Drug Negotiated Price for a 30-Day Supply in 2026 List Price for a 30-Day Supply in 2026 Discount Januvia $113 $527 79% Fiasp, Fiasp FlexTouch, Fiasp PenFill, NovoLog, NovoLog FlexPen, NovoLog PenFill $119 $495 76% Farxiga $178.50 $556 68% Enbrel $2,355 $7,106 67% Jardiance $197 $573 66% Stelara $4,695 $13,836 66% Xarelto $197 $517 62% Eliquis $231 $521 56% Entresto $295 $628 53% Imbruvica $9,319 $14,934 38% 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.Read NextDec 19, 2025 •By Maurie Backman3 Retirement Investing Mistakes to Avoid in 2026Dec 19, 2025 •By Christy Bieber3 Moves Every Retiree Needs to Make Before the End of 2025Dec 19, 2025 •By Maurie Backman3 Things You and Your Spouse Need to Discuss Before Claiming Social SecurityDec 18, 2025 •By Dana GeorgeWhat Should Retirees Know About Retiring in a Bear MarketDec 18, 2025 •By Kailey Hagen, CFPWant to Max Out Your 401(k) in 2026? Here's What You'll Need to Do.Dec 18, 2025 •By Katie Brockman2 Reasons I'll Be Taking Social Security Long Before Age 70About the AuthorKailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning.
Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.TMFKaileyAdvertisement