:max_bytes(150000):strip_icc()/medicare-advantage-2026-3ba26c78fae540b1a01b99c26dde6f33.jpg "Medicare Advantage Premiums Are Getting Cheaper Next Year—But Your Overall Costs Could Still Rise")
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Key Takeaways
- Medicare Advantage and Part D drug plan premiums are expected to drop in 2026.
- These declines come alongside a Part B premium hike and reduced supplemental benefits, which may raise overall costs for enrollees.
Average premiums for Medicare Advantage (MA) and Part D prescription drug plans will decline by double-digit or nearly double-digit percentages in 2026. This continues a trend of steady drops in Medicare Advantage premiums over the past 16 years since a high of $36 in 2010. Part D premiums have been falling since a high of $56.49 in 2023.
The Centers for Medicare and Medicaid Services (CMS) announced the projected premiums on Friday, just ahead of the annual Medicare open enrollment period, which runs from Oct. 15 to Dec. 7.
The decreases are welcome news for Americans battling inflation, but they also come with a previously announced increase in Part B premiums, which could more than offset the decreases for some enrollees.
Why This Matters to You
Even small changes in Medicare premiums or benefits can impact your monthly budget, especially if you’re on a fixed income. Understanding what’s changing helps you avoid surprise costs and choose the plan that fits your needs best during open enrollment.
Medicare Advantage and Part D Premiums Falling
Here’s how much average monthly premiums are expected to fall in 2026:
| Medicare Advantage and Standalone Part D Premiums, 2025-2026 | |||
|---|---|---|---|
| 2025 Monthly Premiums | 2026 Monthly Premiums (projected) | Change | |
| Medicare Advantage | $16.40 | $14 | -$2.40 (-14.6%) |
| Standalone Part D | $38.31 | $34.50 | -$3.81 (-9.9%) |
While premiums are falling, insurers project enrollment in Medicare Advantage plans will fall from 34.9 million in 2025 to 34 million in 2026, though CMS expects enrollment will be stronger than those projections. CMS said it negotiated with Part D providers to lower costs and rejected plans that wouldn’t hold costs down.
Part B Costs and Part D Out-of-Pocket Maximums Up
The news isn’t all rosy: CMS previously announced that premiums for Medicare Part B, which you still must pay if you’re on Medicare Advantage, are rising from $185 to $206.50 in 2026. And the catastrophic threshold for Part D, which works like an out-of-pocket maximum, is rising from $2,000 to $2,100.
| 2025 Costs | 2026 Costs (projected) | Change | |
| Part B Premium | $185/month | $206.50/month | +$21.50 (+11.6%) |
| Part D Catastrophic Threshold | $2,000 | $2,100 | +$100 (5.0%) |
So, you could still end up paying $19.10 more per month, on average, if you enroll in a Medicare Advantage plan.
In addition, many Medicare Advantage plans are trimming offerings for supplemental benefits such as non-emergency medical transportation, nutrition services, and dental care.
Open Enrollment 2026
Starting with the 2026 plan year open enrollment, which runs from Oct. 15 to Dec. 7, shoppers using the Medicare plan finder will have new features to help choose a plan, including an artificial intelligence tool to estimate drug costs at nearby pharmacies. It’ll also show which plans include your current doctors.
Here’s how to make the most of open enrollment 2026:
- Don’t assume your current plan is still the best. Your provider network, drug formulary, and premiums may change from year to year.
- Compare total costs, not just premiums. Also look at deductibles, copays, drug coverage, and maximum out-of-pocket limits.
- Check out the updated Medicare Plan Finder. The new tools can help you estimate your prescription costs and find plans that cover your current doctors. And in general, it can help you compare costs across multiple plans.
- Call in help. Free, unbiased help is available from 1-800-MEDICARE or your State Health Insurance Program (SHIP). Independent brokers can also help, but make sure they can help you compare plans from multiple insurers.
- Check your eligibility for financial help. Programs like Extra Help and the Medicare Savings Program can lower or eliminate premiums, deductibles, and drug costs.
