How to save on 2026 Medicare costs during open enrollment

Rising Medicare premiums and disappearing plans make this year's enrollment period crucial for keeping healthcare costs in check. Edgars Sermulis/Getty Images

The cost of Medicare is headed noticeably higher next year. According to the latest Medicare Trustees report, Part B monthly premiums are expected to jump from about $185 in 2025 to $206.50 in 2026 — one of the biggest year-over-year increases in the program's history. Meanwhile, Medicare Part D prescription drug plan costs are set to climb as well, with premiums allowed to increase by as much as $50, up from the $35 cap the government set in 2025.

And, many of the largest private insurers are also planning to pull back on their Medicare offerings or exit the market altogether in 2026 due to declining profitability, which will only add to the challenges that seniors will face with their coverage next year. These pull-backs and exits mean that some seniors may see their preferred Medicare plans disappear, while others could face more limited coverage options or reduced supplemental benefits.

These changes come as older Americans are already navigating other economic challenges, including inflation, rising healthcare costs and fixed retirement budgets. But while you can't control Medicare's pricing decisions or insurer exits, you do have an opportunity to take action during Medicare open enrollment. By making smart choices now, you may be able to offset next year's higher costs, and, in some cases, even lower what you pay overall.

Start comparing your Medicare supplemental coverage options here.

How to save on 2026 Medicare costs during open enrollment

Open enrollment, which is happening now through December 7, is the one time each year when most Medicare beneficiaries can review their plans and make changes without penalty. And, given the significant premium increases expected for 2026, taking a proactive approach this year is more important than usual. Here are several strategies that can help you reduce your out-of-pocket Medicare expenses:

Re-shop your Part D prescription drug plan

Prescription drug coverage can vary widely from plan to plan, and premiums are set to rise sharply next year. If you've had the same plan for a while, don't assume it's still the most cost-effective option. Formularies (meaning the lists of covered drugs) and prescription drug pricing can change annually, so a plan that worked for you this year could become more expensive next year.

To reduce the risk of this issue, use Medicare's Plan Finder tool on Medicare.gov to compare your current coverage with other available options in your area. And, be sure to enter your medications and preferred pharmacies to see estimated annual costs under each plan. By switching to a plan with a lower premium or better drug coverage now, you could save hundreds of dollars next year.

Learn more about the Medigap plan options available to you today.

Consider switching from Original Medicare to a Medicare Advantage plan

If you currently use Original Medicare (Parts A and B) with a separate Part D plan and Medigap policy, moving to a Medicare Advantage plan (Part C) may offer savings, especially if you're facing higher Medigap premiums or rising Part D costs.

Many Medicare Advantage plans offer $0 premiums, include built-in prescription drug coverage and provide additional benefits such as dental, vision and hearing care. Some also cap out-of-pocket spending, which Original Medicare does not.

However, it's important to carefully compare provider networks, covered services and cost-sharing rules before making a switch. If you see specialists frequently or have specific healthcare needs, make sure your doctors and prescriptions are covered, too.

Compare Medicare Advantage plans even if you already have one

If you're already enrolled in Medicare Advantage, don't automatically stick with your current plan. Insurers are scaling back their offerings in 2026, and your plan's premiums, deductibles or benefits may change.

So, compare the available Medicare Advantage options in your area to see whether another plan offers lower premiums, better cost-sharing terms or more generous supplemental benefits. Even switching from one Advantage plan to another can yield meaningful savings.

Check your eligibility for Medicare Savings Programs or Extra Help

Low- and moderate-income beneficiaries may qualify for certain federal or state assistance programs that can reduce Medicare costs significantly. For example, Medicare Savings Programs (MSPs) can help pay Part B premiums, deductibles and coinsurance for eligible individuals. Or, Extra Help can reduce or eliminate Part D premiums, deductibles and copays for prescription drugs

These programs can provide substantial financial relief, especially with premiums increasing for the coming year. If you meet the requirements, you can apply through your state's office or the Social Security Administration website.

Optimize your coverage based on your actual healthcare needs

You should also take a close look at how you used your coverage over the past year. Did you hit your out-of-pocket maximum? Were certain benefits unused? Did your prescriptions change?

By aligning your plan with your real usage rather than sticking with what you've always had, you can avoid overpaying for coverage you don't need or underinsuring yourself in critical areas. For example, if you've started new medications, a different Part D plan may cover them more affordably. If your healthcare usage has decreased, a plan with a higher deductible but a lower premium may make more sense.

The bottom line

Medicare costs are rising significantly in 2026, with Part B premiums set for one of the largest hikes in the program's history and Part D plans facing steep increases as well. At the same time, insurer pullbacks are reshaping the Medicare landscape, making this open enrollment period even more important than normal.

By actively comparing plans, re-evaluating your coverage needs and exploring available assistance programs, you can take control of your healthcare spending and potentially save a substantial amount next year. Whatever you do, though, don't wait. Once open enrollment ends on December 7, your options for adjusting coverage will be limited until next year.

Edited by Matt Richardson