Prescription drug coverage options are shrinking for Medicare shoppers

"Fewer choices may be on the menu again as Medicare patients shop for prescription coverage this fall. The number of available, stand-alone drug plans has fallen for a few years, and that trend will continue for 2026. Most markets will still have several choices, but some options are becoming particularly sparse for shoppers with low-income subsidies. And help may be harder to find because some insurers no longer pay brokers commissions for new business."

"Shoppers have from Oct. 15 to Dec. 7 to find new coverage that starts in January. Some things to consider: Here's who needs a Medicare Part D plan Regular Medicare, which most people qualify for after turning 65, does not come with prescription coverage, known as Part D. People must choose that separately. About 23 million people with regular Medicare have this standalone coverage, according to the non-profit KFF, which studies health care."

"A typical shopper will be able to choose a standalone drug plan from among eight to 12 options for 2026, according to KFF Medicare expert Juliette Cubanski. That's down from 12 to 16 options in 2025. Shoppers had nearly 30 choices as recently as 2021, according to the Commonwealth Fund's Gretchen Jacobson. Depending on the state, a range of one to four plans will be available at no premium to people who qualify for low-income subsidies, according to KFF. Eight were available in 2021."

Stand-alone Medicare Part D drug plan options continue to decline for 2026, with typical markets offering eight to 12 choices, down from nearly 30 in 2021. Regular Medicare does not include prescription coverage, so about 23 million beneficiaries purchase standalone Part D while roughly 34 million have Medicare Advantage plans that often include drugs. No-premium options for low-income subsidy recipients have fallen to one to four plans in many states, compared with eight in 2021. Some insurers are reducing participation or exiting the standalone market, and policy changes and cost caps are increasing financial pressure on insurers.

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