Medicare Open Enrollment Ends December 7: Compare Plans by Total Yearly Cost
- The comparison that matters
- Drug costs now have a yearly cap
- Three checks before December 7
- Free tools
From October 15 to December 7, people on Medicare in the US can switch drug plans, move between Original Medicare and Medicare Advantage, or change Advantage plans. Changes start January 1. Plans change their premiums, deductibles and drug lists every year, so a plan that was cheapest last year may not be now.
The comparison that matters
The monthly premium is only one piece. For each plan, add up a full year:
- Premiums: monthly premium x 12 (plus the Part B premium if you are comparing against Original Medicare with a Medigap plan).
- Deductibles: the drug deductible and, for Advantage plans, any medical deductible.
- Your drugs: the yearly cost of each prescription you take now, at the pharmacy you use. The plan finder on Medicare.gov does this if you enter your drug list.
- Your worst case: the plan’s out-of-pocket maximum for medical care (Advantage plans have one; Original Medicare alone does not).
Example, two drug plans for someone with three regular prescriptions:
- Plan A: $15/month premium, $615 deductible, drugs after deductible $900 a year = $180 + $615 + $900 = $1,695
- Plan B: $48/month premium, $0 deductible, drugs $750 a year = $576 + $0 + $750 = $1,326
The plan with the higher premium is about $370 cheaper for this person.
Drug costs now have a yearly cap
Under current law, Part D out-of-pocket drug spending is capped each year ($2,100 in 2026). If your drugs are expensive, the cap limits the worst case, and the Medicare Prescription Payment Plan lets you spread those costs over monthly payments instead of paying most of it in January.
Three checks before December 7
- Read the plan’s Annual Notice of Change letter for next year.
- Confirm your doctors and pharmacy are in network for next year.
- Put next year’s premium and expected drug costs into your monthly budget now.
Free, unbiased help is available from your state’s SHIP program.
Free tools
- Retirement withdrawal calculator: https://smartbudgetsheets.surge.sh/calculators/retirement-withdrawal-calculator/?utm_source=nostr
- Savings goal calculator: https://smartbudgetsheets.surge.sh/calculators/savings-goal-calculator/?utm_source=nostr
- Debt Payoff Planner, up to 8 debts (Payhip): https://payhip.com/b/PtBLU?utm_source=nostr
- 42 free budget templates, pay what you want ($0 is fine): https://smartbudgetsheet.gumroad.com/l/ngpkrb?utm_source=nostr
General information, not financial advice. Figures are rounded examples.
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