Key Takeaways
- With Medicare open enrollment underway, you can shop for and switch to a more affordable 2026 plan until Dec. 7.
- You can also save by applying for assistance programs, checking drug formularies and provider networks, and tapping a licensed expert.
- Cut costs throughout the year by using preferred pharmacies, staying within your provider network, and using wellness benefits or free preventive care.
Medicare premiums, deductibles, and other out-of-pocket expenses are set to increase in 2026, adding financial pressure to seniors already navigating tight budgets. Findings from the nonprofit healthcare research organization KFF show that more than 7 million Medicare beneficiaries spend at least 10% of their annual income on Part B premiums alone.
Fortunately, there are ways to curb climbing costs. Tap these strategies to save on Medicare during open enrollment—and beyond.
Save Now (During Open Enrollment)
Medicare open enrollment began on Oct. 15 and runs through Dec. 7. This annual period lets you make significant changes to your current health insurance coverage, and it’s a prime opportunity to switch to a more affordable plan. These steps can help you save during the open enrollment period.
1. Comparison Shop
Use the Medicare.gov Plan Finder tool to search for and compare all available health and prescription drug plans in your ZIP code.
If you’re unsure of how to proceed, a State Health Insurance Programs (SHIP) counselor or licensed Medicare insurance broker can help you make sense of your options and find the best coverage.
“Do not assume that this year’s plan is the most cost-efficient for the coming year,” said Scott R. Maibor, managing director at Senior Benefits Boston. “Not checking your plan could cost you.”
Tip
You can find a local SHIP counselor on the program’s website or verify a broker’s license through your state’s department of insurance.
2. Check Networks & Drug Formularies
While you’ll want to compare plan costs, it’s also important to compare coverage details and benefits.
Medicare provider networks and drug formularies, in particular, can change from year to year, and enrolling in a plan that doesn’t adequately cover your preferred physicians or your everyday medications can cost you, even if you’re technically saving on premiums.
A 2025 study from the National Bureau of Economic Research, for instance, found couples overpay, on average, by $690 a year by not choosing Medicare drug plans tailored to their needs.
3. See If You Qualify for Financial Assistance
Medicare offers several programs that help low-income seniors cover health care costs, including:
- Medicare Savings Programs (MSPs): These can assist with hospital insurance (Part A) and medical insurance (Part B) premiums, deductibles, coinsurance, and copayments.
- Extra Help: This program lowers Medicare prescription drug (Part D) costs, including premiums, deductibles, and coinsurance or copays.
- Dual eligibility: This allows Original Medicare recipients with limited income to also qualify for Medicaid, though exact guidelines vary by state.
“Many beneficiaries qualify for premium or drug-cost help but never apply,” said Stephanie Jones, founder and CEO of iTAV Software & Services, a Medicare-focused health care technology company.
Online screening tools, like the Social Security Administration’s Extra Help assessment, can help you determine what Medicare assistance you qualify for.
4. Consider a Medicare Advantage or Medigap Plan
Medicare Advantage (MA) plans are government-approved private health care plans that serve as an alternative to Original Medicare. They often bundle Medicare Part A (hospital), Part B (outpatient), and Part D (drugs) with other benefits, like vision or dental, and can prove cheaper. or provide more value.
In fact, in 2026, the average monthly plan premium across all MA plans is decreasing from $16.40 in 2025 to $14.00 in 2026, according to the Centers for Medicare & Medicaid Services.
Keep in mind, however, that MA plans are typically less flexible than Original Medicare, requiring the use of slimmer provider networks, referrals, or prior authorization for certain drugs or services.
Learn more about the top Medicare Advantage providers.
If you decide to stick with Original Medicare, a Medicare Supplement (Medigap) plan will cost you additional premiums, but could ultimately save you money by covering your out-of-pocket costs when you access care.
Save Year-Round
These strategies can help you save on Medicare health care and insurance costs once open enrollment ends.
5. Take Advantage of Free Preventive Care
Medicare covers most preventative services without requiring a copay, including:
- Your annual physical
- Colonoscopies
- Mammograms
- Glaucoma screenings
- Depression screenings
- Obesity behavioral therapy
- Bone mass measurements and more
It also covers all adult vaccines recommended by the Advisory Committee for Immunization Practices (ACIP) at no cost. That list currently includes COVID-19 vaccines, flu shots, pneumococcal shots, and Hepatitis B shots.
6. Stay In-Network
Not all providers accept Original Medicare, and MA plans typically charge higher rates or, worse yet, full price if you get non-emergency care from a physician outside of their network.
“Seeing out-of-network providers or using out-of-network facilities can [cost] significantly more than those same services provided in-network,” Maibor said, even if you have a Preferred Provider Organization (PPO) plan. “We warn clients, the ability to go out of network is a double-edged sword that must be used judiciously.”
7. Ask About Preferred Pharmacies & Generic Drugs
Some plans offer lower copays or coinsurance if you use preferred in-network pharmacies, as these suppliers have agreed to charge your insurer less for prescription drugs.
Similarly, you can sometimes get a discount if you agree to get up to a three-month supply of your prescriptions or automatic refills from a mail-order pharmacy. You might also save by opting for generic versions of brand-name drugs.
“Simple substitutions can dramatically reduce drug spending,” Jones said.
Contact your insurer or review your drug formulary to determine the cost-saving measures that are available to you.
8. Use Wellness Benefits
Some Medicare Advantage and Medigap plans cover gym memberships, fitness programs, nutrition counseling, and other wellness benefits that can help you stay in good health.
They may also include telehealth benefits that make it easier (and faster) to see a doctor for non-emergency care.
“I am always surprised at how few beneficiaries take advantage of the ‘extra’ benefits they signed up for with their Advantage plan,” Maibor said. “Few are actually using the ‘perks’ that in many cases drew them to the plan initially.”
9. Watch for Policy Changes
Medicare changes are fairly routine, but late-2025 has seen a flurry of activity in the space, following a changeover in presidential administrations and the passage of the GOP-led “One Big Beautiful Bill.”
The Trump administration, for instance, recently announced that pharmaceutical manufacturers Eli Lilly and Company and Novo Nordisk will sell obesity drugs Ozempic, Wegovy, Mounjaro, and Zepbound to Medicare beneficiaries at a deep discount. The deal is part of the administration’s broader efforts to bring most-favored-nation (MFN) drug pricing to the U.S.
Meanwhile, CMS is also testing prior authorization rules for Original Medicare in six states that could pave the way for broader implementation.
“Medicare is entering a period of meaningful transition,” Jones said. “Some changes will strengthen protections; others may shift costs or reduce certain benefits.”
Monitoring for these and other types of policy changes can help you identify new ways to save or avoid pricey missteps.