Millions of seniors with Medicare Advantage plans can expect slimmed-down benefits, loftier premiums, and a reduced selection of options in 2026 plans.
What that means: This is not the year to skip reviewing your coverage during open enrollment, which kicked off this week.
In September, you received your Annual Notice of Change letters spelling out changes in coverage and costs that will be effective next year. The open enrollment period runs through Dec. 7. During this time, those who are enrolled can make modifications to their coverage, which goes into effect on Jan. 1. You can switch between original Medicare and Medicare Advantage, change Medicare Advantage plans, and add or switch your Part D prescription drug plan. And possibly add or change to a new Medigap policy.
Medicare Advantage is an alternative health insurance program to traditional Medicare for those 65 and older. The plans are run by private insurance companies such as UnitedHealthcare and Humana and have been soaring in popularity.
However, for 2026, some insurers are jettisoning plans, hospital systems, and doctors, paring back benefits and ramping up out-of-pocket costs, including deductibles.
“Some insurers are deemphasizing or even pulling out of certain geographic markets,” Philip Moeller, a Medicare and Social Security expert, who writes the Aging in America newsletter, told Yahoo Finance. “Variations among plan premiums, co-pays, and annual deductibles are unusually large, leading to large differences in out-of-pocket costs among plans.”
Case in point: UnitedHealthcare and Johns Hopkins Medicine ended their network contract in August. That means that most Johns Hopkins facilities and providers are now out of network for patients with UnitedHealthcare Medicare Advantage plans. “If your Johns Hopkins Medicine hospital doesn’t participate with a Medicare Advantage Plan, you can use out-of-network benefits if your plan has them,” according to the healthcare provider’s website.
Read more: Medicare open enrollment: How to add or adjust your coverage
More than half of eligible beneficiaries have enrolled in Medicare Advantage since 2023, according to KFF. A big sweetener is the perks not included in traditional Medicare, such as drug coverage (Part D), eyeglasses, dental coverage, gym memberships, and reimbursements for — believe it or not — bowling balls and pickleball paddles.
Plus, they often have very low or even no premium costs.
There are disadvantages. Most Medicare Advantage plans require prior authorization as a condition for coverage of services, a restriction only rarely required in traditional Medicare.
