2026 Medicare Part D Premium Information is Dribbling In

Today’s video is most relevant for the millions of Americans on a freestanding Medicare Part D drug plan. Our clients have just started to receive 2026 premium increase notices, and I want to share that information with you. But we think all those on Medicare should be reviewing their Plan information this open enrollment season.

Please note that the government has limited premium increases to no more than $50/month for 2026 Part D Plans. Also note that premiums can vary across PDP Regions, but will be similar. The information we have from various regions as of today, 9/25/2025, is shown below.

We were initially surprised to see a reduction in the AARP Rx Saver Plan, but that Plan increased its 2025 premium to the full monthly amount the government allowed, which was $35.00. As a result, the Plan is decreasing its premium in 2026 to be close to what it was in 2024, $34.50.

Now, I know we won’t get the attention of many people who are facing up to $600 in additional premiums, especially those on costly drugs. Some, however, will face significant increases who take no drugs or a few inexpensive generics. Our advice is to be aware of what is happening to your Plan.

To refresh everyone’s memories, from 2006, when Part D started, through 2023, there was no out-of-pocket maximum for Part D Plans. The Inflation Reduction Act created an out-of-pocket maximum of $8000 last year and $2000 this year. It will be $2100 next year. Such a dramatic change in benefit design led to Plans proposing very substantial premium increases for 2025, which were tempered by billions of dollars in subsidies that the Biden administration extended to Plans and which are now being reduced. If you’re interested in the technical background, see this official information.

In sum, these changes are very good news for those with expensive drugs. One client in 2023 faced out-of-pocket drug expenses of close to $20,000. Prior to 2024, one had to pay high out-of-pocket expenses to a catastrophic limit, $7400 in 2023, and then 5% of the cost of the drug or drugs, until the process reset on January 1st. 

We believe everyone should have drug coverage because drug expenses can be so catastrophic but we sympathize with how costly Part D coverage will become for those not taking expensive drugs or any drugs.

Please know what’s happening to your Plan as deductibles and coinsurance, and copayments will also be increasing, sometimes according to drug tier. Selecting the best drug plan involves having your drugs covered on a Plan’s formulary (to the extent possible) at the lowest or close to the lowest cost, including the premium and all other out-of-pocket costs. Open enrollment begins on October 15th and ends on December 7th.