Important Medicare Updates for 2026
Medicare is rolling out several important changes in 2026 that affect drug costs, plan flexibility, and supplemental benefits. Here’s a streamlined look at what beneficiaries should know.
Lower Drug Prices Begin
Starting January 1, 2026, Medicare will introduce its first negotiated prices on 10 high-cost prescription drugs used to treat conditions like cancer, diabetes, and arthritis. These changes are designed to reduce out-of-pocket costs for many enrollees.
Possible Extra Chance to Change Plans
Some beneficiaries may qualify for a special opportunity to switch plans in early 2026 if Medicare Plan Finder errors caused inaccurate provider listings. This helps ensure access to covered doctors and hospitals.
Part D Costs Increase
Despite lower prices for certain drugs, overall Part D costs are rising. The annual out-of-pocket cap increases to $2,100 in 2026 (up from $2,000), and deductibles and premiums may also go up.
Automatic Renewal for Drug Payment Plan
Anyone enrolled in the Medicare Prescription Payment Plan in 2025 will be automatically reenrolled for 2026 unless they opt out.
Changes to Supplemental Benefits
Medicare is ending or scaling back some supplemental benefit pilot programs. Medicare Advantage plans are also tightening access to nonmedical benefits.
Bottom Line
While lower drug prices may help some beneficiaries, higher Part D costs and fewer supplemental benefits make reviewing your Medicare plan for 2026 more important than ever.
As the new year begins, many homeowners assume their insurance coverage is still adequate—but that’s not always the case. Rising construction costs, inflation, and changes to your home can quietly leave you underinsured without you realizing it.
One of the most common reasons homes become underinsured is increased rebuilding costs. The cost of labor, materials, and permits often rises year over year, meaning the amount it would take to rebuild your home today may be significantly higher than when your policy was last reviewed. If your coverage hasn’t been updated, your policy limits may fall short in the event of a loss.
Another factor is home improvements or upgrades. Renovations like kitchen remodels, finished basements, new roofs, or additions can increase your home’s value—but if your insurance policy wasn’t adjusted afterward, those improvements may not be fully covered.
Additionally, many homeowners confuse market value with replacement cost. Insurance is designed to cover the cost to rebuild your home, not what it would sell for. Changes in real estate prices don’t always align with construction costs, which can create coverage gaps.
The new year is a smart time to review your homeowners insurance and make sure your coverage reflects today’s realities. A quick policy review can help ensure you’re properly protected and avoid unexpected financial stress if the unexpected happens.
If you’re unsure whether your home is adequately insured, speaking with a licensed insurance professional can help you start the year with confidence and peace of mind.
Cost Control Takes the Lead for Employers in 2026
As we head into 2026, a recent survey reveals that 42% of employers are now making health care cost control their top benefits priority — surpassing even attracting and retaining top talent. With health plan costs projected to rise by 7.6% (adjusted after plan design changes), many companies are feeling the pressure. Rising prices for medical services, specialty drugs, and chronic condition care are driving this shift, as cost increases have outpaced projections two years in a row. The result is that employers are taking a closer look at their current plans and asking tough questions about affordability and long-term sustainability.
To keep costs in check, many organizations are planning smarter, more strategic moves. These include tightening plan designs, re-evaluating wellness and vendor programs, and keeping a close eye on high-cost prescription drugs, including GLP-1 options, which has been identified by many as a top concern. Employers are also looking into stop-loss coverage changes and digital health tools that could support employees while reducing long-term spending. The message is clear: health care cost management isn’t just a trend; it’s becoming a core part of smart benefits strategy.