Medicare Advantage premiums will be cheaper next year, according to new cost figures released ahead of the annual enrollment window that opens Oct. 15.
The average monthly premium for Medicare Advantage plans is set to decline in 2026, offering relief to the roughly half of Medicare beneficiaries who get their coverage through the privately run program. The plans bundle hospital, doctor and often prescription drug coverage into a single policy.
The lower cost gives seniors a concrete reason to review their options during open enrollment, which runs from Oct. 15 through Dec. 7. During that window, beneficiaries can switch between Medicare Advantage and traditional Medicare, change plans, or adjust their prescription drug coverage.
Medicare Advantage has grown into the dominant form of Medicare coverage in the United States. Insurers including UnitedHealth Group, Humana and CVS Health run the plans, which are funded by the federal government but administered by private companies.
Premiums are only one part of the cost picture. Deductibles, copays, provider networks and drug formularies can vary widely from plan to plan, and a lower headline premium does not guarantee lower overall costs for every enrollee.
Beneficiaries should check whether their doctors and hospitals remain in a plan's network before signing up, and compare drug coverage against the prescriptions they actually take. Plans change their networks and formularies every year.
The enrollment period matters because most Medicare beneficiaries who miss it are locked into their current coverage until the next annual window, with few exceptions.
Seniors who want to compare plans can use Medicare's Plan Finder tool at Medicare.gov or call 1-800-MEDICARE for help. State SHIP programs also offer free counseling.
The premium decline comes as the program faces continued scrutiny in Washington over payment rates and risk coding. Lawmakers on both sides have raised questions about how insurers are paid, though no changes have taken effect that would alter next year's premiums.
For now, the message to beneficiaries is straightforward: the cost of many plans is going down, but the decision of which plan to pick still requires homework before Dec. 7.
