Medicare Part D Premiums Set to Rise in 2026: How much will you Pay?

Medicare Part D Premiums Price: Starting in 2026, people who get their prescription drugs through Medicare Part D might have to pay a lot more. The Centers for Medicare & Medicaid Services (CMS) has shared that costs will rise because of changes made by the government and insurance companies. Many seniors could end up spending more from their own pocket just to get the same medicines they’ve always used.

This price jump is mostly happening because insurance companies are now offering higher bids for their plans. CMS said that the average bid for stand-alone drug plans will reach $239.27 next year. That’s a 33% increase from what it was in 2025.

Even though there’s a base fee of $38.99 per month that can only rise by about 6% yearly, that doesn’t mean people won’t see much higher prices. some plans charge more than the base fee, especially if they cover more drugs or offer extra services. This could mean some people will see their monthly fees rise by $10 to $20 or more.

The Premium Stabilization rule

But there’s a rule in the IRA that stops them from raising prices too fast. It’s called the premium stabilization rule, and it says plan sponsors can’t increase the base premium by more than 6% in 2025. Medicare will help cover the rest by giving more money to the plans directly.

At the same time, the annual deductible for Part D is also going up. In 2025, it’s $590, but in 2026 it will jump to $615. That means you’ll have to pay more out of pocket before your plan starts covering your medicines. There’s also a small change to the spending cap. In 2025, you’ll stop paying for drugs after spending $2,000, but that number will increase to $2,100 in 2026, reported Kiplinger. After you hit that limit, you won’t pay anything for the rest of the year on your covered prescriptions, which is helpful for people with high drug costs.

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Why the Prices are Rising?

The reason behind this increase is that the federal government is giving less help to insurance companies now. In 2025, there was a special program that helped keep fees low. It gave a $15 payment to insurers and only allowed them to raise costs by $35 per year. But that help is mostly going away in 2026.

Next year that support payment drops to just $10, and the limit on how much plans can raise their costs goes up to $50. Also some rules that used to protect insurance companies from losing too much money are ending too. Without that safety net, the companies are expected to pass the extra costs to the people buying the plans.

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Organized numbers

• 2026 average plan bid: $239.27/month (33% up)
• Base beneficiary premium: $38.99/month (6% up)
• Insurer subsidy: Falls from $15 to $10/month
• Premium cap increased: From $35 to $50
• Risk corridor protections: End in 2026

Changing Plans

Medicare’s enrollment runs from October 15 to December 7 every year. This is when you can switch plans, pick a new drug plan, or move between Original Medicare and Medicare Advantage.

Your premium depends on your income. If you earn more, you might have to pay extra each month. This extra amount is called IRMAA and is based on your income from two years ago. your 2026 IRMAA will be based on your 2024 tax return.

You can’t change past income, but you can plan ahead. If you think your 2025 income might push you into a higher IRMAA bracket for 2027, now’s a good time to act. Some people reduce future taxes by doing Roth conversions, which can help them avoid required withdrawals later. This keeps their income lower and avoids extra IRMAA charges.

Though CMS says they are trying to protect people from huge price increases and still want insurance companies to compete fairly, it’s clear that the price hike will affect many people.