2026 Medicare Part D Premiums: PDP Costs Remain Higher Than MA-PDs
Average monthly premiums for stand-alone prescription drug plans (PDPs) decreased 7% from $39 in 2025 to $36 in 2026, according to report data. Despite this drop, PDP premiums remain more than four times higher than the $8 average monthly drug coverage premium for Medicare Advantage-Prescription Drug (MA-PD) plans.
Why are PDP premiums higher than MA-PD costs?
The price gap stems largely from how plans are funded. MA-PD sponsors use rebate dollars from Medicare payments to lower or eliminate Part D premiums, according to the data. These rebates have tripled since 2015 and now exceed $2,600 per year per beneficiary.
In 2026, the average monthly premium for drug coverage in MA-PDs is $8, a modest increase from $7 in 2025. The total average premium for MA-PDs, which includes all Medicare-covered benefits, is $15 per month.
How do plan types affect monthly costs?
Monthly costs for PDPs vary based on the “generosity” of the coverage, specifically whether a plan is basic or enhanced. Enhanced PDPs offer better formulary coverage, lower cost sharing, or lower deductibles.
In 2026, 58% of PDP enrollees (10.8 million people) use enhanced plans with an average monthly premium of $39. This is 27% higher than the $31 average paid by the 42% of enrollees (7.8 million people) in basic plans.
Deductibles also drive price swings. Enrollees in plans with the standard $615 deductible pay an average monthly premium of $22. Conversely, the 4% of PDP enrollees in plans with zero deductibles face a much higher average monthly premium of $127.
Who pays zero premiums for drug coverage?
A significant majority of MA-PD enrollees without low-income subsidies (LIS) pay nothing for drug coverage. Specifically, 79% (14.3 million people) pay no monthly premium in 2026. For the average beneficiary, 21 out of 32 MA-PD options charge no premium for drug coverage.
Only 28% of PDP enrollees without LIS (4.0 million people) pay zero premiums. For these beneficiaries, only 2 out of 11 PDP options typically charge no premium.
Among the 4.0 million non-LIS PDP enrollees paying zero premiums, 62% (2.5 million) are in Wellcare Value Script. Another 10% (0.4 million) use Humana Basic Rx, and 10% use Humana Value Rx.
What happens next for Medicare Part D costs?
The current pricing reflects a temporary Part D premium stabilization demonstration. Established by the Biden administration in 2024 and renewed by the Trump administration in 2025, this program is designed to stabilize PDP premiums.
Because the demonstration limits monthly premium increases to a maximum of $50 in 2026, future costs may remain capped as long as the program is active. However, the disparity between PDPs and MA-PDs could persist if MA-PD sponsors continue using high rebate dollars to eliminate premiums.
High-end costs may also remain a factor for a minority of users. While less than 1% of non-LIS MA-PD enrollees pay $100 or more monthly, 20% (2.9 million) of non-LIS PDP enrollees currently pay at least $100 per month.
Frequently Asked Questions
What is the average monthly premium for a PDP in 2026?
The average monthly PDP premium is $36, a 7% decrease from $39 in 2025.
How does the PDP average premium compare to MA-PD drug coverage?
The $36 average PDP premium is more than four times higher than the $8 average monthly premium for drug coverage in MA-PDs.
What is the difference between basic and enhanced PDPs?
Enhanced plans offer more generous benefits, such as lower cost sharing, better formulary coverage, or lower deductibles, and carry a higher average premium ($39) than basic plans ($31).
Do you prefer a plan with a lower monthly premium and a higher deductible, or a higher premium with no deductible?