Medicare Part D provides outpatient prescription drug coverage to Medicare beneficiaries through private insurance plans. The 2026 Part D benefit includes the $2,000 annual out-of-pocket spending cap enacted by the Inflation Reduction Act, eliminating the catastrophic coverage gap. Each Part D plan has its own formulary, but all must cover at least two drugs in every therapeutic category and all drugs in six protected classes.

Key Facts

The 2026 annual out-of-pocket cap is $2,000 for all Part D plans, with an option to spread costs monthly
Six protected classes require nearly all drugs to be covered: anticonvulsants, antidepressants, antipsychotics, antiretrovirals, immunosuppressants, and antineoplastics
Part D plans must cover at least two drugs per therapeutic category
Insulin copays are capped at $35 per month across all Part D plans
The Medicare Plan Finder at medicare.gov lets you compare formularies and costs by entering your specific drugs
Part D coverage gap (donut hole) has been eliminated as of 2025

Open Enrollment Reminder

ACA marketplace enrollment runs November 1 to January 15. Medicare Annual Enrollment is October 15 to December 7. Compare formularies for your medications before choosing a plan.

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Check Your Specific Plan's Formulary

Coverage varies by plan. Use our formulary checker tool to look up your exact copay and restrictions.

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Frequently Asked Questions

What is the Medicare Part D donut hole in 2026?

The donut hole (coverage gap) has been effectively eliminated. Starting in 2025, the Inflation Reduction Act capped out-of-pocket Part D spending at $2,000 per year. Once you hit that amount, your plan covers 100% of drug costs for the rest of the year. This continues in 2026.

How do I choose the best Part D plan for my medications?

Use the Medicare Plan Finder at medicare.gov. Enter your zip code, current medications, and preferred pharmacy. The tool compares estimated total annual costs across all available plans in your area, factoring in premiums, copays, and your specific drug list.

Can my Part D plan remove a drug from its formulary mid-year?

Plans can make formulary changes mid-year, but they must provide 30 to 60 days notice before removing a drug or moving it to a higher tier. You can request a formulary exception, and you have the right to continue receiving a removed drug during the transition period.

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