What to Know About Medicare Open Enrollment: Changes That Could Save You Money in 2026

If you’re a Medicare beneficiary, mark your calendar: Open Enrollment for 2026 coverage runs from October 15 to December 7, 2025. This is the time to review your health and prescription drug plans—and this year, there are big changes that could help you save money and improve your coverage.

Whether you’re already enrolled in Medicare or new to the program, it’s important to understand your options and how the 2026 updates may affect your care. Here’s what you need to know.

Prescription Drug Costs Capped at $2,100

For 2026, a major win for Medicare Part D enrollees is the introduction of a new out-of-pocket spending cap. Thanks to the Inflation Reduction Act, prescription drug costs under Medicare Part D are capped at $2,100 per year—an adjustment from the $2,000 cap introduced in 2025.

That means once you spend $2,100 out of pocket on covered prescription drugs (including deductibles, copays, and coinsurance), you’ll pay nothing more for the rest of the year. There’s no more coverage gap—also known as the “donut hole”—and no surprise costs for expensive medications.

For seniors managing ongoing health conditions, this change could bring significant savings.

Another helpful feature is the new Medicare Prescription Payment Plan, which allows you to spread your drug costs into monthly payments rather than paying all at once. This can make budgeting easier. To take advantage of this option, contact your Part D plan provider during open enrollment.

However, it’s important to check your plan’s drug list (formulary). Fewer Part D plans are being offered in 2026, and some plans may drop certain medications, raise premiums, or change their preferred pharmacy networks. Be sure to review and compare plans carefully.

Monthly Flexibility for Low-Income Enrollees

If you have both Medicare and full Medicaid, or you qualify for the Extra Help program, there’s good news for 2026: you’ll be allowed to switch your Medicare Advantage or Part D plan every month instead of quarterly.

This added flexibility can help you adjust your coverage if your health needs change or if you need better coordination between your Medicare and Medicaid benefits.

The Extra Help program also reduces drug costs to as little as $4.90 for generics and $12.15 for brand-name medications. If you’re not sure whether you qualify, call 1-800-MEDICARE or visit Medicare.gov for help.

Fewer Medicare Advantage Plans Available

For 2026, there will be fewer Medicare Advantage plans available across the country. Some plans are being discontinued or consolidating, and others may change their provider networks, premiums, or benefits.

If you’re enrolled in a Medicare Advantage plan, you should have received an Annual Notice of Change (ANOC) letter by September 30, 2025. This letter outlines any changes to your current plan, including whether your doctors, specialists, or hospitals will still be in-network next year.

To explore your options, use the Medicare Plan Finder at Medicare.gov/plan-compare, or talk to your local Medicare specialist. You can compare plans based on your ZIP code, your current prescriptions, and your preferred pharmacy. It’s a helpful tool that makes it easier to find a plan that fits your needs and budget.

Why Open Enrollment Matters

During Medicare Open Enrollment, you can:

• Switch from Original Medicare to a Medicare Advantage plan, or vice versa
• Join, switch, or drop a Medicare Part D (prescription drug) plan
• Review and change plans to make sure your prescriptions, doctors, and services are still covered

Any changes you make during this window will go into effect on January 1, 2026.

Take Action Now

Don’t wait until the last minute. Review your options early to avoid surprises, especially if your plan is changing or being discontinued. Look at how your current plan covered your needs this year, and see if there’s a better match available.

For help comparing plans or understanding what’s new, visit Medicare.gov, call 1-800-MEDICARE, or speak to a State Health Insurance Assistance Program (SHIP) counselor, who can provide free one-on-one support.