As retirement approaches, health care emerges as a top concern for many Americans. With rising costs and inflation eroding savings, planning for medical expenses is crucial. For those 65 and older, Medicare serves as the cornerstone of coverage, currently enrolling over 68 million people - a number projected to reach 86 million in 25 years.
However, Medicare doesn't cover everything, often requiring supplemental plans to fill gaps like prescription drugs, vision, dental, and hearing. Each year, Medicare's open enrollment period offers a vital window to review and adjust your coverage. Running from October 15 to December 7, 2025, for 2026 plans, this is your chance to potentially save thousands by optimizing your setup.
According to AARP and the Kaiser Family Foundation, many enrollees miss out on better options, sticking with plans that no longer fit their needs. Here are three key changes to consider:
- Switch Medicare Part D Plans: Part D covers prescriptions, but formularies (lists of covered drugs) can change annually, hiking out-of-pocket costs. Review your "Plan Annual Notice of Change" mailed by late September. Use the Medicare Plan Finder tool online to compare options. For 2026, all Medicare plans will include a $2,100 cap on what you pay out-of-pocket for prescription drugs covered by your plan. The Medicare Prescription Payment Plan continues, allowing you to spread costs across the calendar year.
- Compare Medicare Advantage Plans: These private plans bundle Parts A, B, and D, often adding extras like vision and dental. Enrollment has grown substantially, now covering over 33 million—more than half of eligible beneficiaries—for their lower premiums and comprehensive benefits.
Check for changes in drug coverage, provider networks (mostly HMOs), and out-of-pocket limits ($9,250 in-network for 2026). If you've relocated, ensure your plan transfers or explore local alternatives. - Switch Between Medicare Advantage and Original Medicare: Advantage plans limit you to networks, which may not suit frequent travelers or those needing out-of-network care. Switching to original Medicare offers flexibility but requires a Medigap policy to cap expenses. Weigh the trade-offs: Advantage for perks, original for freedom.
Health care planning is integral to a secure retirement, preventing unexpected bills from derailing travel, philanthropy, or legacies. Consult professionals during open enrollment to tailor coverage and safeguard your future. Don't overlook this opportunity - your wallet and well-being depend on it.