Medicare Part D Premiums Set to Rise in 2026: Here's What You Need to Know

If you’re on Medicare and rely on Part D to help cover prescription drug costs, get ready, premiums are expected to increase significantly in 2026.

According to the Centers for Medicare & Medicaid Services (CMS), this change will affect many beneficiaries due to rising plan bids and reduced government subsidies.

 

What’s Changing?

• Average Part D Plan Bid: Climbing to $239.27/month, up 33% from 2025

• Base Beneficiary Premium: Rising to $38.99/month (up 6%)

• Federal Subsidy: Dropping from $15 to $10/month

• Premium Cap: Increasing from $35 to $50/month

• Risk Protections for Insurers: Will be eliminated in 2026

You’ve earned certain benefits! Make sure you’re getting them here.

 

Why the Increase?

The jump in costs is tied to:

First: Cuts in federal support that previously kept premiums stable. 

Second: The end of CMS’ 2025 premium stabilization demonstration, which included subsidies and safeguards for insurers. 

Lastly: Insurers now shouldering more risk, potentially passing added costs directly to consumers.

 

What This Means for You

Even with the base premium capped at $38.99, the actual amount you pay could rise significantly, especially if you’re enrolled in a more robust plan.

Many could see monthly increases of $10 to $20 or more.

CMS says your premium will depend on the specific plan you choose, but warns that most plans may hit new higher price limits in 2026.

 

What You Can Do

• Review your Part D plan closely during the Medicare open enrollment period.

• Compare alternative options, such as Medicare Advantage plans, which may include prescription drug coverage and offer more stable or lower costs.

• Don’t assume your current plan is still the best deal.

-

Stay in the loop with the latest benefits resources!

At BrowseResources.com, we take pride in bringing you the freshest and updated articles for you and your family.