The Centers for Medicare and Medicaid Services (CMS) has announced that premiums, benefits, and plan choices for Medicare Advantage (MA) and Medicare Part D prescription drug programs are expected to remain stable in 2026, with projections showing average premiums for both programs declining from 2025 into next year.
CMS provided these updates ahead of the annual Medicare Open Enrollment period, scheduled from October 15, 2025, to December 7, 2025, when millions of Americans using the service will be able to switch or adjust their health insurance plans for the 2026 plan year.
Why It Matters
Medicare’s stability and affordability directly affect more than 65 million Americans, especially older adults and those with disabilities.
MA and Part D are private plan alternatives to Original Medicare: MA bundles hospital, medical, and often drug coverage, while Part D covers prescription drugs separately. In 2025, nearly half of all Medicare enrollees chose MA, reflecting the plan’s importance.
As prescription drug costs remain a significant concern for retirees on fixed incomes, Part D also plays a key role in protecting against high drug expenses.
With projected premium declines, the update suggests those opting for MA or Part D plans will be protected from the surges in premiums seen elsewhere in the health insurance industry.
What To Know
CMS projected average monthly MA premiums will decrease from $16.40 in 2025 to $14 in 2026. For standalone Part D prescription drug plans, the average total premium is expected to fall from $38.31 to $34.50. The average total premium for Part D coverage bundled in MA plans should decrease to $11.50.
Plan access for beneficiaries also remains high, with more than 99 percent having access to at least one MA plan and 97 percent to 10 or more options.
The number of available MA plans will decline slightly, CMS said, going from 5,633 in 2025 to about 5,600 in 2026, but the agency suggested the projected enrollment decline in MA, from 34.9 million to 34 million, may not materialize, citing past trends of more robust participant numbers.
As medication costs continue to rise, CMS emphasized its effort to prevent significant spikes in premiums by negotiating with plan sponsors and using statutory authority to deny any with excessive increases or reductions in benefits.
The annual out-of-pocket maximum for Part D is however set to rise to $2,100, up from $2,000 in 2025, according to medicareresources.org.
These updates come ahead of the Medicare Open Enrollment period, which provides an annual opportunity for beneficiaries to review their coverage.
The Medicare.gov Plan Finder provides clear, easy-to-use information for people to compare plans and find the best option for their needs, while highlighting key changes in health and drug coverage that can vary year to year.
Low-income seniors and people with disabilities may also qualify for the Medicare Savings Programs, which help cover premiums and other health costs.
What People Are Saying
CMS Administrator Dr. Mehmet Oz said in a statement: “Millions of Medicare beneficiaries will continue to have access to a broad range of affordable coverage options in 2026. We want every beneficiary to take advantage of Open Enrollment—compare your options and choose the plan that gives you the right care at the best price.”
What Happens Next
Medicare Open Enrollment for 2026 runs from October 15 to December 7, 2025. During this window, beneficiaries can review and change plans using the Medicare.gov tools.
