The average monthly premium for a standalone Medicare Part D plan will reach 44 dollars in 2026 according to the Centers for Medicare and Medicaid Services. That is up from 36 dollars just three years ago.
Add in the standard deductible of 590 dollars and many retirees will spend more than 1,100 dollars out of pocket before their drug coverage kicks in fully. Yet half of all beneficiaries still stick with the same plan year after year even though switching could cut their costs by 400 dollars or more.
Open enrollment runs from October 15 to December 7. The decisions you make now lock in your coverage for all of 2026. This column walks through exactly how to compare plans, use the official Medicare tool, and avoid common traps that cost older Americans real money.
Why Part D Costs Keep Climbing
Medicare Part D is the voluntary prescription-drug program that began in 2006. In 2026 the average monthly premium for a standalone plan is projected at 44 dollars according to the Centers for Medicare and Medicaid Services.
That is a 22 percent jump from 2023. The standard deductible rises to 590 dollars, up from 545 dollars in 2025. Once you meet the deductible you pay 25 percent coinsurance until total drug spending reaches 6,350 dollars.
After that you enter the new catastrophic phase created by the Inflation Reduction Act where you pay nothing for covered drugs for the rest of the year. These higher starting costs make it more important than ever to pick the right plan.
The Kaiser Family Foundation reports that the average beneficiary could save 512 dollars a year by switching to the lowest-cost plan in their area.
Use the Medicare Plan Finder Every Year
Go to Medicare.gov/plan-compare during open enrollment. Enter your ZIP code and your list of prescription drugs including exact dosages. The tool ranks every available Part D plan by total estimated annual cost for your specific medicines.
In 2025 the average difference between the cheapest and most expensive plan in a county was 1,200 dollars according to an analysis by the Commonwealth Fund. Do not rely on mailings from insurance companies.
Their ads often highlight only the premium and hide the deductible and coverage gaps for your drugs. The Medicare Plan Finder shows the true bottom-line number. Save your drug list as a profile so you can update it quickly if your medicines change.
Stand-Alone Versus Medicare Advantage
About 48 percent of Medicare beneficiaries are now in Medicare Advantage plans that bundle Part D coverage. These plans often advertise zero-premium options but many raise copays for specialty drugs or drop coverage for certain medicines mid-year.
Traditional Medicare with a stand-alone Part D plan gives you more predictable costs and access to any doctor who accepts Medicare. If you have Original Medicare and a stand-alone Part D plan you can switch to a different Part D plan without affecting your hospital or medical coverage.
People in Medicare Advantage can switch back to Original Medicare during open enrollment and pick any stand-alone Part D plan.
Extra Help and Low-Income Subsidies
More than 13 million people receive Extra Help from Social Security which pays most or all of their Part D premiums, deductibles and copays. The income limit in 2026 is 23,310 dollars for a single person or 31,500 dollars for a couple.
Resources must be under 15,450 dollars for singles or 30,650 dollars for couples. Even if your income is higher than these numbers you may still qualify if you have high drug costs.
Apply at SSA.gov or call 800-772-1213. People who qualify mid-year get the subsidy right away and their plan is switched to a benchmark plan at no extra cost.
The Donut Hole Is Gone But Watch the Phases
The Inflation Reduction Act eliminated the coverage gap known as the donut hole. In 2026 you move straight from 25 percent coinsurance to zero percent once total drug costs hit 6,350 dollars.
Brand-name insulin is capped at 35 dollars per month for everyone in Part D. Many common drugs such as those to treat high blood pressure or cholesterol now have maximum copays of 2 dollars or less under the new senior savings model offered by many plans.
Check whether your plan participates in this model. It can cut your yearly insulin bill from more than 1,000 dollars to under 500 dollars.
Avoid Late-Enrollment Penalties
If you delay signing up for Part D after you first become eligible you pay a permanent penalty of 1 percent per month for each month you waited. That penalty is added to your premium forever.
For someone who waited 24 months the extra cost would be about 10 dollars a month in 2026 or 120 dollars a year. The only way to avoid the penalty is to have creditable drug coverage from an employer, union, or the Department of Veterans Affairs.
Always ask for a letter stating that your coverage is at least as good as Medicare Part D.
What to Do in the Next 30 Days
Make a list of every prescription you take and the exact dose. Log into Medicare.gov and run a comparison for your ZIP code. Sort the results by total annual cost not by premium alone.
Look at both the deductible and the copay levels for each of your drugs. Narrow your choices to the three cheapest plans then read the formulary for each to make sure none of your medicines are excluded.
Call 800-MEDICARE if the website confuses you. They can walk you through the screen. Complete your switch by December 7 so the new plan starts January 1.
2026 Part D Cost-Sharing Phases
| Phase | You Pay | When It Ends |
|---|---|---|
| Deductible | 100 percent | $590 in total drug costs |
| Initial coverage | 25 percent coinsurance | $6,350 in total drug costs |
| Catastrophic | Zero percent | End of calendar year |
| Insulin cap | $35 per month | All year for participating plans |
Medicare Part D is one of the few parts of retirement health care where you get to choose your costs every single year. Spending two hours with the Medicare Plan Finder can easily save you 400 dollars to 600 dollars in 2026.
Do not assume the plan that worked last year is still the best deal. Drug prices and plan formularies change. Put a reminder on your calendar for mid-October and treat it like an important financial appointment.
The money you keep in your pocket can go toward groceries, travel, or simply peace of mind. Your future self will thank you for taking the time now.
Sources
- Centers for Medicare and Medicaid Services, 'Medicare Part D 2026 Projected Premiums and Benefits,' CMS.gov (2025)
- Kaiser Family Foundation, 'Medicare Part D in 2025 and Trends Over Time,' KFF.org (2025)
- Commonwealth Fund, 'How Medicare Beneficiaries Fare Under Part D Cost Sharing,' Commonwealthfund.org (2025)
- Social Security Administration, 'Extra Help with Medicare Prescription Drug Costs,' SSA.gov (2026)
- Medicare Payment Advisory Commission, 'Report to Congress on Medicare Payment Policy,' MedPAC.gov (March 2025)