The Centers for Medicare & Medicaid Services announced cost updates for 2026 Medicare Advantage plans. The average monthly premium is projected to be about $14, and the maximum out-of-pocket limit for in-network services will be up to $9,250.

Medicare Advantage, or Medicare Part C, consists of health plans offered by private companies that contract with Medicare. These plans provide the same coverage as original Medicare, which includes Part A for inpatient hospital stays and Part B for doctor visits. Most plans also offer Part D drug coverage and may include additional benefits such as dental, vision, and hearing coverage.

Medicare is a federal health insurance program primarily for individuals age 65 and older, though it also covers individuals under 65 with certain disabilities. People become eligible when they turn 65, regardless of retirement age. The initial enrollment period begins three months before an individual's 65th birthday, includes their birth month, and ends three months after.

For 2026, the Medicare Part B premium is set at $202.90, and the deductible is $283. The Part A deductible rises to $1,736 in 2026 from $1,676 in 2025. The Part D premium for 2026 is $38.99, with a deductible of $615. In 2025, the Part B premium was $185, and the Part D premium was $36.78 with a deductible of $590.

Medicare Advantage members must still pay their Part B premium. These plans may have restrictions on covering medical care outside the U.S. In 2026, Medicare Advantage also includes a separate $2,100 maximum out-of-pocket limit for prescription drug costs. Individuals can sign up by applying online at Medicare.gov or by calling 1-800-MEDICARE.

Meredith Ramsey, an independent insurance agent, said, "Medicare Advantage plans can have low or no monthly premiums, but they usually require members to get their care only from network doctors and hospitals." She added, "Both options (original Medicare and Medicare Advantage) may have deductibles, copays and coinsurance, where you pay a percentage of the bill."

Original Medicare does not provide a cap on out-of-pocket expenses for hospital or outpatient services. "You can go through your life with just parts A and B, but the out-of-pocket costs will get you," said Diane J. Omdahl, founder of 65 Incorporated.

A Medicare supplement plan, known as Medigap, is designed for individuals with original Medicare who need additional coverage for out-of-pocket costs. Medigap helps cover original Medicare-related expenses, including deductibles, copayments, and coinsurance. Policies, such as Plan G and Plan N, are offered by private insurers or groups such as AARP. Each Medigap plan type must offer the same services regardless of the insurance company. Medigap does not cover vision care, dental care, hearing aids, private nursing, long-term care, or custodial care. The cost of Medigap plans can vary by state. During the initial enrollment period, individuals can enroll in a Medigap plan if they have also enrolled in Medicare Part B.