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2026 Medicare Changes Every Beneficiary Should Know

From the Part D out-of-pocket cap to new prior authorization pilots, here's what's different this year.

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Prescription Drug Changes

The Part D annual out-of-pocket cap continues to apply, meaning once you hit the cap for the year, your covered drug costs stop for the rest of the plan year. The Medicare Prescription Payment Plan option — which lets you spread out-of-pocket drug costs across monthly payments instead of paying them at the pharmacy — also continues to be available, and eligible enrollees are typically auto-enrolled with the ability to opt out.

Insulin costs remain capped at a flat monthly amount with no deductible under Part D, and ACIP-recommended adult vaccines like flu, shingles, and pneumonia vaccines continue to be covered at no cost under Part D.

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Medicare Advantage and Administrative Changes

CMS has tightened rules around Medicare Advantage 'special supplemental benefits for the chronically ill,' restricting them to genuinely health-related items rather than general perks. Some plans are also piloting AI-assisted prior authorization review in a limited number of states, aimed at speeding up decisions.

On the administrative side, Medicare continues expanding electronic tools — including electronic Medicare Summary Notices and digital prescription tools available through your MyMedicare.gov account — making it easier to track claims and coverage online.

Frequently Asked Questions

It's a program that lets you spread your out-of-pocket Part D drug costs across monthly payments over the plan year instead of paying larger amounts at the pharmacy counter.