Retirement Planning
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Brace for Impact: Major Medicare Changes in 2026 You Can't Afford to Miss
Essential Updates to Your Medicare Coverage
As we approach 2026, significant changes to Medicare are on the horizon, potentially affecting your healthcare costs and coverage options. Understanding these changes is crucial to ensuring you make informed decisions about your healthcare.
Key Medicare Changes for 2026
Part D Prescription Drug Coverage
- Out-of-Pocket Cap: The annual cap on out-of-pocket drug costs is increasing from $2,000 in 2025 to $2,100 in 2026.
- Deductible: The maximum annual Part D deductible is rising to $615, up from $590 in 2025.
- Prescription Payment Plan: Enrollees who used the Medicare Prescription Payment Plan in 2025 will be automatically re-enrolled for 2026, though they can opt out.
- Negotiated Drug Prices: The first set of drug prices, negotiated by the government, will become available in 2026 for 10 specific Part D drugs.
Medicare Advantage Plans
- Plan Availability: UnitedHealth will stop operating in 109 counties, affecting about 180,000 people.
- Premiums: Average Medicare Advantage premiums are decreasing slightly for 2026. The average premium in 2025 is $13.32/month for Medicare Advantage plans with integrated Part D coverage (MA-PD), and that’s decreasing to an average of $11.50/month in 2026.
- Out-of-Pocket Maximum: The Medicare Advantage maximum out-of-pocket limit will decrease slightly to $9,250 in 2026.
Part B and Part A Premiums
- Part A Premium: For enrollees who pay premiums for Medicare Part A, the premiums are projected to increase slightly for 2026. Depending on how much work history the person has, the 2026 Part A premiums are projected to be either $310/month or $563/month, up from $285/month or $518/month in 2025.
- Part B Premium: The projected standard premium for 2026 is $206.50/month, up from $185.00 in 2025.
- Part B Deductible: The projected deductible for 2026 is $288, up from $257 in 2025.
What This Means for You
These changes could lead to higher out-of-pocket costs and premiums for many Medicare beneficiaries. It's essential to review your current plan and consider your options for 2026.
Need Assistance Navigating These Changes?
The Farther Focus team is here to help you understand these changes and make informed decisions about your Medicare coverage. Contact us today to schedule a consultation and ensure you're prepared for 2026.
Sources:
- (Fox Business)
- (UnitedHealthcare)
- (Health System Tracker)
- Image by rawpixel.com on Freepik
Michael Lee
,
Principal, Wealth Advisor & Focus Team Lead
With over 10 years of experience as an advisor, Michael brings a laser-focused approach to holistic wealth management. His first foray into retirement planning was when his mother retired from Kaiser Permanente Walnut Creek. As a first generation American, Michael had the duty of translating for his family – and he felt, firsthand, the stress and anxiety that large financial decisions can cause for the majority of retirees. Michael provides fiduciary advice to soon-to-be retirees of large corporations. And he makes it his number one priority to chop down complex financial concepts – including pensions, 401K/TSA, Social Security, and taxes – into easy-to-understand bites for his clients. Michael’s expertise enables him to add a strong layer of financial advice to a company’s HR team – with a particularly strong understanding of the retirement programs offered by PG&E, AT&T, Kaiser Permanente, Chevron, Northrop Grumman, Boeing, and Raytheon. Born and raised in Oakland, CA, Michael is an active member of the dog rescue community – having fostered many dogs through rescue organizations including Chows Plus and Love Second Chances. You can find him exploring around town with his latest rescue, Chow Chow Maple.
With over 10 years of experience as an advisor, Michael brings a laser-focused approach to holistic wealth management. His first foray into retirement planning was when his mother retired from Kaiser Permanente Walnut Creek. As a first generation American, Michael had the duty of translating for his family – and he felt, firsthand, the stress and anxiety that large financial decisions can cause for the majority of retirees. Michael provides fiduciary advice to soon-to-be retirees of large corporations. And he makes it his number one priority to chop down complex financial concepts – including pensions, 401K/TSA, Social Security, and taxes – into easy-to-understand bites for his clients. Michael’s expertise enables him to add a strong layer of financial advice to a company’s HR team – with a particularly strong understanding of the retirement programs offered by PG&E, AT&T, Kaiser Permanente, Chevron, Northrop Grumman, Boeing, and Raytheon. Born and raised in Oakland, CA, Michael is an active member of the dog rescue community – having fostered many dogs through rescue organizations including Chows Plus and Love Second Chances. You can find him exploring around town with his latest rescue, Chow Chow Maple.
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