Medicare Part B Premiums Rise in 2026; Part D Drug Costs Slightly Decline

Medicare premiums for traditional Part B plans are projected to increase significantly in 2026, marking the largest rise since 2022. The standard monthly premium for Part B is expected to increase from $185 to $206.50, with higher costs for enrollees with incomes exceeding $109,000 individually or $218,000 for couples. In addition, the Part B deductible will increase from $257 to $288. These increases are driven by greater healthcare utilization and medical inflation due to technological advancements. Meanwhile, Part D prescription drug premiums are expected to slightly decline nationally, although this decrease may not apply in certain states like Florida. Notably, 2026 will see the first implementation of direct government negotiations with drug manufacturers on prices for ten high-cost medications treating major conditions like cancer and diabetes, aiming to reduce drug costs for Medicare enrollees. Open enrollment for Medicare benefits runs from October 15 to December 7, allowing about 66 million beneficiaries to enroll in, drop, or switch between Original Medicare, Medicare Advantage (Part C), and prescription drug plans (Part D). Medicare Advantage plans, which include additional coverage such as vision and dental and typically have no deductibles, have become more popular than Original Medicare since 2024, with most requiring enrollees to pay the standard Part B premium. However, these plans restrict enrollees to provider networks and have recently contracted benefits and plan availability due to cost sustainability concerns among insurers. Original Medicare offers broader provider access and can be supplemented with Medigap policies that cover coinsurance and other out-of-pocket costs but come with additional premiums that vary widely based on personal factors. Certified health insurance brokers recommend evaluating plan choices based on individual financial situations and healthcare needs, highlighting that plan features and network limitations make some plans more suitable than others. Beneficiaries transitioning to Original Medicare after open enrollment have limited switching opportunities until the next annual election. Resources for enrollment assistance are available through state agencies, certified brokers, and the SHINE program, emphasizing the importance of preparing medical, prescription, financial, and personal information ahead of the enrollment period. Understanding these changes is critical for Medicare enrollees to navigate increasing cost pressures and evolving plan options effectively in 2026.