Medicare is always evolving. Each year, Medicare coverage, premiums, deductibles and copayments/coinsurance are likely to change. Medicare programs may change as well, so it’s important to stay up to date. This way, you’ll be able to make an informed decision if you need to switch to a new Medicare plan.

So, what exactly is different for Medicare in 2026? We’ll go through the changes to help you get a better understanding of what they mean for you and your coverage.

Key Medicare premium changes in 2026

There are several changes to Medicare premiums in 2026 that will impact what you can expect to pay. But first, the big question: Will Medicare premiums go up in 2026? On average, yes, beneficiaries will see premiums increase slightly. Here’s what you can expect.

2026 Medicare Part A premiums

About 99% of Medicare beneficiaries don’t pay a Part A (hospital coverage) premium. However, for those with a Part A premium in 2026, monthly costs will be either $311 (a $26 increase from 2025) or $565 (a $47 increase from 2025). These costs depend on how long you worked and paid Medicare taxes. If your income is lower, you may be eligible for a Medicare Savings Program.

2026 Medicare Part B premiums

The standard monthly Medicare Part B (medical coverage) premium has increased to $202.90, which is up $17.90 from 2025. Part B premiums are calculated on a sliding scale based on your adjusted gross income. For many, expected increases will be minor, but for some, they can be more significant. Just as with Part A, if you need help with costs, you may be eligible for a Medicare Savings Program.

2026 Medicare Part D premiums

Based on current enrollment, the average 2026 premium for Part D prescription drug coverage plans is projected to decrease slightly from $38.31 last year to $34.50. This is largely due to changes implemented by the Inflation Reduction Act (IRA) passed in 2022.

Those who need help lowering prescription drug costs can work with their doctor to shift to generic brands or other lower-cost drugs, explore new plan options or apply for Medicare's Extra Help Program.

Part D coverage and benefits in 2026

While many aspects of your Part D benefits and coverage will change in 2026, some will remain the same. Here are things you should consider.

The Medicare donut hole went away in 2025

The Part D coverage gap, also known as the donut hole, was eliminated in 2025. This change impacted how enrollees budget for prescriptions, and it will do so in 2026 as well.

The Medicare donut hole was a third phase of Medicare Part D prescription drug coverage. While enrollees were in this phase of their coverage, they had to pay 25% of their prescription medicine costs.

With the donut hole gone, Part D coverage is a three-phase benefit, including:

  • Deductible phase: The period during which you pay out of pocket for prescription medicines until you meet your plan’s specific deductible.
  • Initial coverage phase: The period during which your plan starts to cover prescription drugs after you meet your deductible. During this time, you will still be responsible for copays and coinsurance.
  • Catastrophic phase: The period during which you reach your out-of-pocket maximum for covered prescription drugs. Your plan then starts paying the total cost of drug coverage.

With this change, there is no longer an initial coverage limit. Instead, you pay your copays and coinsurance until you meet your out-of-pocket maximum of $2,100 for the year. The catastrophic phase will then kick in.

Prescription drug costs are still capped

In 2026, Part D beneficiary out-of-pocket spending will be capped at $2,100 – up from $2,000 in 2025. That means there will be no beneficiary cost-sharing above this threshold, so the most you will pay out of pocket for medicines in 2026 is $2,100. Knowing this in advance will allow Part D enrollees to budget for the year.

The Medicare Prescription Payment Plan re-enrollment

In 2025, the Medicare Prescription Payment Plan went into effect to help beneficiaries manage expenses. This program requires all Medicare prescription drug plans to allow enrollees to pay out of pocket for medicine costs in capped monthly installments instead of all at once at the pharmacy. For 2026, Medicare has made being part of this program even easier. If you’re enrolled in the Medicare Prescription Payment Plan in 2025, you’ll be automatically re-enrolled in 2026 and each year following unless you opt out.

New lower negotiated drug prices

The IRA granted Medicare the ability to negotiate the prices of high-cost drugs directly with pharmaceutical companies. This helps make expensive prescriptions more accessible for people enrolled in Medicare with high medication costs. In 2026, the first round of negotiated medication prices take effect, including medicines like:

  • Eliquis
  • Enbrel
  • Entresto
  • Farxiga
  • Imbruvica
  • Januvia
  • Jardiance
  • Fiasp/NovoLog
  • Stelara
  • Xarelto

Insulin prices could drop, too

For the past few years, monthly insulin supply costs have been capped at $35 for Medicare beneficiaries under Parts B and D. In 2026, prices are still capped at $35, but you may be able to instead pay 25% of Medicare’s Maximum Fair Price or 25% of the negotiated price – either of which may be less than $35.

Medicare deductibles in 2026

For 2025, caps on annual deductibles for Medicare Part A, Part B and Part D have also increased. While costs may vary by plan, here are the maximum amounts you might have to pay to cover a deductible:

  • Part A deductible: $1736 (up from $1,676 in 2025)
  • Part B deductible: $283 (up from $257 in 2025)
  • Part D deductible: $615 (up from $590 in 2025)