Beneficiaries should consider options for 2026
WASHINGTON, Oct. 20, 2025 /PRNewswire/ — As Open Enrollment for Medicare began this week for millions of Americans, the Alliance for Aging research launched several new educational tools and resources to help older adults, caregivers, and healthcare professionals better understand Medicare Part D prescription drug coverage and identify ways to save on out-of-pocket medication costs.
A new film, “What to Know About Managing Your Medicare Prescription Drug Costs in 2026” is also available in Spanish, and shorter PSA versions at LowerOutOfPocketCosts.org.
“These new materials provide timely guidance to help people make informed decisions about managing their prescription drug costs,” said Lindsay Clarke, Chief Operating Officer and Senior Vice President of Health Education for the Alliance for Aging Research. “The film explains how recent policy changes to Medicare Part D help beneficiaries make their medications more manageable and predictable.”
Starting in 2025, Congress made changes to Medicare Part D to help beneficiaries manage out-of-pocket costs and better afford their medications. The annual out-of-pocket maximum, or limit, on the amount Medicare Part D beneficiaries have to pay will continue in 2026, but with a few changes:
- In 2026, the maximum amount a Part D beneficiary will have to pay for their medications over the calendar year is $2,100. This is a change from 2025 to account for inflation.
- The Medicare Prescription Payment Plan (MP3)—an optional payment option to spread out costs into monthly installments, with no interest or fees—will continue automatically for beneficiaries who have opted into one of these plans. However, if beneficiaries make changes to their Part D plan during the 2026 Open Enrollment (October 15-December 7, 2025), they have to opt in to the MP3 again.
The MP3 program is important because instead of paying the total out-of-pocket costs for a prescription medication at the pharmacy counter, or wherever one gets their prescriptions, that cost can be spread out into smaller monthly payments over the year. It doesn’t cost anything to take advantage of this payment option.
“Our goal is to empower individuals with clear, trustworthy information that helps them to understand their coverage choices and take advantage of savings opportunities to get the most out of their Medicare benefits,” said Clarke. “Navigating prescription drug coverage can be confusing, and we want to make it easier for people to understand their options and lower their costs.”
All materials are available for free at www.LowerOutOfPocketCosts.org.
The Alliance for Aging Research believes advances in research help people live longer, happier, more productive lives and reduce healthcare costs over the long term. For nearly 40 years, the Alliance has guided efforts to substantially increase funding and focus for aging at the National Institutes of Health and Food and Drug Administration; built influential coalitions to guide groundbreaking regulatory improvements for age-related diseases; and created award-winning, high-impact educational materials to improve the health and well-being of older adults and their family caregivers. Learn more about the Alliance at www.agingresearch.org.
To interview Lindsay Clarke, email Katie Riley, Vice President of Communications, at [email protected].
SOURCE Alliance for Aging Research
