CMS projects lower Medicare Advantage and Part D premiums for 2026

The Centers for Medicare & Medicaid Services expects Medicare Advantage and Medicare drug coverage to stay stable in 2026, with average premiums falling in both programs.

What CMS projects for 2026

• Medicare Advantage premiums. The average monthly premium across all Medicare Advantage plans is estimated to fall from $16.40 in 2025 to $14.00 in 2026.
• Stand-alone drug plans. The average total premium for a stand-alone Part D plan is projected to fall from $38.31 in 2025 to $34.50 in 2026.
• Drug coverage inside Medicare Advantage. The average Part D portion of the premium is projected to fall from $13.32 to $11.50.
• Plan choice. The number of Medicare Advantage plans available nationally is expected to be roughly 5,600 in 2026, slightly down from 5,633 in 2025.
• Enrollment. CMS projects Medicare Advantage enrollment of about 34 million in 2026, down from 34.9 million in 2025.

What a low premium does and does not tell you

A $0 or low monthly premium does not mean a plan is free. With Medicare Advantage you still pay your Part B premium, which is $202.90 per month in 2026, plus copays and coinsurance up to the plan’s annual out-of-pocket maximum. Those maximums differ a great deal between plans, and so do the provider networks, the drug formularies and the rules on prior authorization.

On the drug side, 2026 brings a maximum Part D deductible of $615 and a $2,100 cap on what you pay out of pocket for covered drugs. CMS has set those at $700 and $2,400 for 2027.

What to check during open enrollment

• Whether your doctors and hospitals are in network for the coming plan year, not the current one.
• Whether each of your prescriptions is on the plan’s formulary, and on which tier.
• The plan’s annual out-of-pocket maximum, which is what protects you in a bad year.
• Any change notice your current plan sent you, since benefits can change even if the premium does not.

Talk to a licensed iHealthAgents advisor

We can walk you through what these amounts mean for your own coverage and compare every plan available where you live.

Book a time with a licensed advisor, or call Illinois 312-726-6565 or Texas 972-666-0578.

This article is for educational purposes only and is not a substitute for advice about your specific situation. Figures shown are the 2026 and 2027 amounts published by the Centers for Medicare & Medicaid Services.