Medicare’s Open Enrollment Period — which runs from October 15 through December 7 — is your annual opportunity to switch your current Medicare health and prescription drug plans to ones that better suit your needs. Just in time for Open Enrollment, 2026 Medicare premiums, deductibles, and other costs are now available.

What to consider?

Start by reviewing any materials your plan has sent you. Look at the coverage offered, the costs, and the network of providers, which may be different than last year. Maybe your health has changed, or you anticipate needing medical care, or new or pricier prescription drugs. If your current Medicare plan doesn’t meet your healthcare needs or fit your budget, you can make changes. But if you’re satisfied with what you currently have, you don’t need to do anything. The coverage you have will continue.

During Open Enrollment, you can:

• Switch from Original Medicare to a Medicare Advantage Plan (& vise versa).
• Change from one Medicare Advantage Plan to a different Medicare Advantage Plan.
• Change from a Medicare Advantage Plan that offers prescription drug coverage to a Medicare Advantage Plan that doesn’t offer prescription drug coverage.
• Drop your Part D coverage altogether.
• Switch from a Medicare Advantage Plan that doesn’t offer prescription drug coverage to a Medicare Advantage Plan that does offer prescription drug coverage.
• Join a Medicare prescription drug plan (Part D).
• Switch from one Part D plan to another Part D plan.

Any changes made to your current coverage during Open Enrollment are effective as of January 1, 2026.

• For those completing initial enrollment into Medicare, different effective dates may apply.

Medicare Part A (Hospital Insurance)

• Part A deductible for inpatient hospitalization: $1,736 per benefit period (up from $1,676 in 2025)
• Part A premium for those who need to buy coverage: up to $565 per month (up from $518 in 2025) — most people don’t pay a premium for Medicare Part A
• Part A coinsurance: $434 per day for days 61 through 90, and $868 per “lifetime reserve day” after day 90, up to a 60-day lifetime maximum (up from $419 and $838 in 2025)
• Part A skilled nursing facility coinsurance: $217 for days 21 through 100 for each benefit period (up from $209.50 in 2025)

Medicare Part B (Medical Insurance)

Most people with Medicare who receive Social Security benefits will pay the standard monthly Part B premium of $202.90 (up from $185 in 2025).

People with higher incomes may pay more than the standard premium. If your modified adjusted gross income (MAGI) as reported on your federal income tax return from two years ago (2024) is above a certain amount, you’ll pay the standard premium amount and an Income-Related Monthly Adjustment Amount (IRMAA), which is an extra charge added to your premium.

Part D Late Enrollment Penalty

You can sign up for Part D coverage through Medicare with no penalty if you previously had “creditable” drug coverage. This refers to Medicare’s requirement to carry comparable coverage for at least 63 days in a row after your initial enrollment period.  If you did not enroll in Part D at that time, and do not currently have a comparable drug program, you may have to pay a late enrollment penalty which is permanently added to your monthly Part D premium.

Questions?

Do you have questions about Medicare Open Enrollment? Would you like assistance with determining which Medicare plan is best for you? Your wealth management team at SFMG Wealth Advisors is here to help. Contact one of our wealth management professionals at 972.960.6460 or visit our website at www.SFMG.com. For additional information on Medicare, visit  Medicare.gov. and/or the Centers for Medicare & Medicaid Services.

 

This article is for educational purposes and reflects our current views and research. Although we make every effort to be accurate in our content, the data is derived from other sources, being the Centers for Medicare & Medicaid Services (CMS.gov) and 2026 Medicare Costs, as of November 2025. While we believe these sources to be reliable, we cannot guarantee their validity. SFMG is a registered investment advisor, not an insurance provider. It is important to consult your tax or wealth advisor before determining if this strategy is appropriate given your individual circumstances.