Medicare Advantage premiums to decline slightly in 2026, says CMS

Medicare Advantage premiums will decrease slightly next year, with the average monthly premium across all MA coverage projected to be $14, down from $16.40 in 2025, according to the Centers for Medicare and Medicaid Services. 

Benefit options will remain stable, including MA supplemental benefit offerings such as hearing, dental and vision, said CMS.

Based on plans’ projections, enrollment in MA is projected to be 34 million in 2026, a decrease from 34.9 million in 2025, with MA enrollment representing approximately 48% of all people enrolled in Medicare, compared to 50% in 2025.

“However, based on recent historical experience and enrollment trends, CMS anticipates that enrollment in MA in 2026 will be more robust than the plans’ projections and that enrollment will be stable,” CMS said.

Access to MA plans will remain stable next year, the agency said, with more than 99% of Medicare beneficiaries having access to a plan, and 97% of beneficiaries having access to 10 or more MA plan choices. 

The total number of available MA plans nationally will decrease slightly from 5,633 in 2025 to approximately 5,600 in 2026. Ninety-nine percent of Medicare members will have access to a plan, according to CMS.

The average stand-alone Part D plan total premium is projected to decrease from $38.31 in 2025 to $34.50 in 2026 – a decrease of $3.81. After the application of MA rebates, which reflects what people in MA plans with prescription drug coverage will pay, the average Part D total premium for MA plans with prescription drug coverage is projected to decrease from $13.32 in 2025 to $11.50 in 2026, a $1.82 decrease.

The agency said it's introducing new features meant to simplify Medicare plan selection. This includes comparing which plans accept beneficiaries’ current providers, details about more supplemental benefits like weight management programs, enhanced security measures to safeguard Medicare accounts and more filtering options to match beneficiaries’ specific needs.

Medicare Plan Finder will be updated with the 2026 Medicare health and prescription drug plan information by Oct. 1, CMS said.

CMS is releasing its projections prior to Medicare Open Enrollment, which runs from Oct. 15 to Dec. 7.

The drop in Medicare Advantage enrollments indicate a potential headwind for MA-focused health insurers such as UnitedHealthcare and Humana, according to Seeking Alpha.

CMS projected that, as a percentage of total Medicare beneficiaries, people enrolled in MA plans will drop to 48% next year from 50% in 2025.

“However, based on recent historical experience and enrollment trends, CMS anticipates that enrollment in MA in 2026 will be more robust than the plans’ projections and that enrollment will be stable,” CMS said.