Medicare Part D updates

$2,100 annual cap on out-of-pocket costs

Starting in January 2026, your out-of-pocket prescription drug costs will be capped at $2,100 per year (up from $2,000 in 2025). Once the $2,100 limit is met, you pay nothing more for covered Part D drugs for the rest of the year.

Spreading out prescription costs

If the $2,100 annual cap is a financial burden, the Medicare Prescription Payment Plan (MPPP) may help. This free, voluntary program allows you to spread your prescription drug costs across monthly payments, making them more manageable.

You can join MPPP anytime—even during open enrollment—by calling the number on your Part D ID card, visiting the plan’s website, or submitting a paper form (that may be sent by or requested from the plan).

If you signed up in 2025, your MPPP enrollment will automatically renew in 2026 with the same Medicare Part D plan, unless you opt out, drop, or switch your plan.

Extra Help for prescription costs

The Extra Help program continues to help people with limited income and resources pay for their Part D prescriptions. If you qualify for Extra Help, you’ll pay no or low monthly premiums and no Part D deductible. You’ll also have lower copays for both brand-name and generic drugs.

You can apply for Extra Help at any time—even after Medicare Open Enrollment ends in December 2025. Eligibility for 2026 will be based on new income limits set in January 2026. To qualify, your income must fall at or below those limits. If you apply earlier, Social Security will make a temporary decision and adjust your benefits once the new limits take effect.

For reference, the 2025 income limits were:

• $23,475 for an individual
• $31,725 for a two-person household

(Income limits are based on 150% of the Federal Poverty Level and are updated each year.)