Medicare Part D Premiums to Rise Sharply in 2026, but Some Plans Lower Rates

Fall enrollment in Medicare is underway, and millions of beneficiaries are shopping for prescription drug coverage. While some plans are raising premiums by $50 or more per month, others are lowering them. KFF, a health care research nonprofit, found that only a few national drug plans were raising premiums substantially this year, with four others charging less in 30 or more states, and two offered by Humana reducing premiums in nearly all states.

Holly Kluck, a retired teacher in New Jersey, is one of the many beneficiaries affected by the premium increases. She found a great price on a prescription drug plan when she signed up for Medicare last year, but was surprised to learn that her premium would jump over $50 next year. Her husband's premium costs would also rise significantly. The couple is shopping for new Part D prescription plans during the annual enrollment period, which runs through December 7.

Key Takeaways:

• The Inflation Reduction Act of 2022 has imposed a cap on patients' out-of-pocket spending for covered drugs, which will be $2,100 in 2026.
• The Biden administration gave drug plans that agreed to participate in a special program for 2025 a subsidy, which will continue in 2026.
• In 2026, participating insurers may raise premiums as much as $50 per month; some, like Holly Kluck's, did not participate and will enact larger increases.
• KFF found that only a few national drug plans were raising premiums substantially this year.
• Four national drug plans will charge less in 30 or more states, and two offered by Humana will reduce premiums in nearly all states.
• Some Part D plans have zero premiums, but these plans typically come with the highest allowable deductible.
• Beneficiaries should consider whether their drugs are covered, whether there are restrictions on those drugs, and the deductibles and other out-of-pocket costs when shopping for a plan.
• Medicare Advantage enrollees should also review their drug coverage and in-network providers during fall enrollment.
• Beneficiaries can use the Medicare Plan Finder to compare stand-alone drug and Advantage plans.
• The government-run Medicare Plan Finder tool is adding directories of providers to Advantage listings this year, but it's still best to check with doctors about any plan considered.
• Some states have fewer than five Advantage plans available.
• Beneficiaries with low incomes and modest assets are eligible for assistance with Part D out-of-pocket costs through the Extra Help program.

Statistics:

• In 2026, the cap on patients' out-of-pocket spending for covered drugs will be $2,100.
• Participating insurers may raise premiums as much as $50 per month in 2026.
• Four national drug plans will charge less in 30 or more states in 2026.
• Two national drug plans offered by Humana will reduce premiums in nearly all states in 2026.
• Some Part D plans have zero premiums, with the highest allowable deductible being $615 in 2026.
• Beneficiaries with low incomes and modest assets are eligible for assistance with Part D out-of-pocket costs through the Extra Help program.

Sources:

• KFF (Kaiser Family Foundation)
• Biden administration
• KFF, "Medicare Part D Premiums to Rise Sharply in 2026, but Some Plans Lower Rates"
• Humana
• Urban Institute
• State Health Insurance Assistance Programs (SHIP)
• Medicare
• Extra Help program