Key Changes and Trends for 2026

  • Plan Discontinuation: A large number of Medicare Advantage plans are expected to be canceled or discontinued for 2026, which could affect over a million people. 
  • Increased Costs: Part B premiums and Part D deductibles are projected to rise. 
  • Out-of-Pocket Limit: The maximum out-of-pocket limit for in-network services under Part A and Part B will decrease slightly to $9,250 in 2026, down from $9,350 in 2025. 
  • PPO Plan Reduction: UnitedHealth Group, a major insurer, plans to eliminate plans serving over 600,000 members, with a focus on reducing PPO offerings due to their higher costs for insurers. 
  • SSBCI Benefits Restrictions: Plans will be restricted from offering non-healthy food, alcohol, tobacco, and life insurance as part of Special Supplemental Benefits for the Chronically Ill (SSBCI). 
  • Shift in Plan Focus: There may be a shift away from supplemental benefits like grocery cards and cash back, toward more focus on core healthcare coverage. 
  • Increased Federal Payments: The Centers for Medicare & Medicaid Services (CMS) projected an increase of 5.06% in payments to Medicare Advantage plans for 2026. 

What to Do If You Are Affected

Be Proactive: If you receive a notice that your plan is being discontinued, you will not be automatically enrolled in a new plan.

Find a New Plan: You will need to find a new Medicare Advantage plan or return to Original Medicare during the appropriate enrollment period.

Consider Original Medicare: If you lose your plan, you could default to Original Medicare, which has no out-of-pocket cost limit and does not include prescription drug coverage.