What's New

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 like meals, transportation, and wellness services.

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 retirement approaches, many people think about canceling life insurance once major obligations like mortgages and child-rearing are behind them. However, life insurance can still play a valuable role in a retirement and legacy strategy.

Legacy and Inheritance Planning

Life insurance offers a tax-free way to leave money to loved ones and can help create an equitable inheritance, especially when a family business or uneven assets are involved. Life insurance may also be used for charitable giving by naming a nonprofit as a beneficiary.

Living Benefits and Long-Term Care

Some permanent policies include living benefits, allowing access to part of the death benefit if you face a chronic illness or need long-term care.

Covering Final Expenses

Life insurance can help cover the burden of final expenses, such as funeral costs, medical bills, or remaining debts, easing the financial burden on family members during an already-difficult time.

Keeping Coverage Into Retirement

While keeping coverage in retirement means ongoing premiums, replacing a policy later can be costly or unavailable due to age or health. For many people, keeping a life insurance plan active into their retirement years is a sound financial decision, and we are here to help you assess how life insurance fits into your overall retirement strategy.

Major changes have come to the ACA Marketplace, and full details can be found at CMS.gov. The most significant changes are in the subsidies and tax credits that are available for lower-income households, and eligibility and enrollment rules.

Subsidies and Tax Credits

Enhanced ACA premium tax credits expired at the end of 2025, meaning subsidy rules have reverted to pre-2021 standards. This will result in smaller tax credits and higher monthly premiums for many enrollees. This change will generally eliminate subsidy eligibility for people with incomes above 400% of the federal poverty level, and also reduce assistance for those low-income families who remain eligible. You can review insurance costs and subsidies at healthcare.gov.

Eligibility and Enrollment Updates

Eligibility and enrollment rules will be tighter starting in 2026. Marketplaces will require more income verification, update how eligibility is reviewed over time, and add pre-enrollment checks for some Special Enrollment Periods. The year-round Special Enrollment Period will end for people with projected household incomes at or below 150% of the federal poverty level. In addition, individuals with Deferred Action for Childhood Arrivals (DACA) status will no longer be considered “lawfully present” for purposes of enrolling in ACA Marketplace coverage or Basic Health Program coverage in states that offer it.