Medicare enrollees looking for prescription drug coverage for the coming year may need to spend some extra time looking around during open enrollment.
That’s because the number of Medicare Part D plans—prescription drug plans available to traditional Medicare — members fell 22% from 2025 figures to just 360 plans across the country. That’s a 50% reduction from 2024.
The Inflation Reduction Act increased cost and risk for the drug plans by introducing a $2,000 out-of-pocket cap, which is good for enrollees, according to Rich Daly, senior editor for the Healthcare Financial Management Association.
“The law also shifted more responsibility for high drug costs onto those plans,” Daly said. “The result is that their profitability was lowered, and a whole bunch of plans left the market as a result.”
And since Part D plans are offered on a regional basis, most enrollees will have the choice of 8-10 plans. Further limiting those choices is the fact that even if there are eight plans offering coverage in any given area, it doesn’t mean there are eight companies offering those plans. The number of companies offering plans is only four to six in each state.
It’s very important for those in Medicare Part D to shop around, Daly said.
“The reasons for doing that is to make sure, for instance, that your drugs that you need are included in the drug formulary, and then also what the out-of-pocket cost variations are, things like the deductibles or the c-pays,” Daly said.
There’s been a big increase in the out-of-pocket costs among some plans as a way to try to boost profitability. So those variables are very important to nail down, Daly said.
In 2025, a lot of drug plans switched away from offering zero deductibles and co-payments for preferred drugs, and added much, much higher co-insurance, he said. The monthly premiums paid by party enrollees in standalone plans in 2026 will increase significantly.