Answer: Let me address Nicks options. As far as Part B, it is what it is unfortunately. There’s nothing we can do about that. But there are other Part D plans with lower premiums. In fact, I estimate that 90% of our Supplement clients will be on one in 2026 with similar or less out of pocket drug costs and a much lower premium. There’s also a good chance Nick can significantly lower his Supplement rate and get the same coverage he has now. Between enrolling him in another Part D and Supplement, we should be able to eliminate his $1,300 increase or come very close. 

Why is his Part D premium going up so much? It’s simple and I’ve been writing about it in almost every column and edition of Aaron’s Advice for a few weeks now. Brand name drug usage is going up, and so are the retail costs of the prescriptions people take the most. There was also a huge additional burden put on insurance companies, both Part D and Advantage Plans, in 2025 when the $2,000 out-of-pocket spending limit on prescrption drugs went into effect. Medicare has given Part D and Advantage Plans significantly more subsidies in an effort to shore up the programs and help with those extra claim expenses, but it simply isn’t enough to keep up. 

Ozempic and similar medications are now the most utilized brand name drugs in the country. A 30-day supply of these GLP-1 drugs, on average, retails for $1,000. Part D and Advantage Plan companies are responsible for paying as much as 50% to 80% of that every month! That means companies who have members taking a GLP-1 are forced to cover $6,000 to $10,000 in claims per year for a single drug. And millions of people on Medicare take multiple brand name drugs! When put in that perspective, it’s not a mystery why premiums are going up. Insurance companies must take in more money in government subsidies and member premiums than they pay out in claims. When they don’t, your premiums and out of pocket costs have to increase. It’s that simple.

Additional pressure is also being put on Advantage Plans because their members are utilizing more medical care than ever before, resulting in higher expenses. The same is true for Original Medicare and Supplements. 

Unless this trend gets fixed, you can expect more costs to be passed onto the consumer and taxpayer. If Congress doesn’t do something asap regarding lowering brand name drug costs and creating a law to get them in line with what they are in Canada and Europe, Americans on health and Medicare insurance of all kinds better buckle up. You think it’s expensive in 2026? Wait until 2027 and beyond. Medicare is close to insolvency, the federal government is already $36 trillion in debt, and 10,000 more Americans go on Medicare every day. There are estimates that the cost to insure all those on Medicare in the next 10 years will double. 

As I stated, the best way to fight increased costs is to have your current plan reviewed to see if there are lower cost options that will provide the same, similar, or even better coverage. The chances of that are very good if you didn’t originally get your plan through the Health Insurance Store. I estimate that more than 50% of those on Medicare are overpaying for their Supplement or Advantage Plan that may not even be competitive as far as co-pays and extra benefits. If you have questions about this or any other Medicare topic or would like to set up an appointment for a no-cost consultation, give the office a call, 724-603-3403. Feel free to email me as well. Aaron@GetYourBestPlan.com.