The Inflation Reduction Act continues to help retirees like you save on prescription drug costs. Here's what's changing in 2026 and how it might affect your wallet.

What’s changing in 2026

The Inflation Reduction Act, signed into law in 2022, is still working to lower your out-of-pocket drug costs. There are a few key changes to be aware of:

• Deductible increase: The maximum deductible for your prescription drug plan (Medicare Part D) will rise from $590 in 2025 to $615 in 2026. This means you'll need to pay the first $615 of your prescription drug costs before your plan starts paying its share.
• Out-of-pocket maximum: After meeting your deductible, you may pay a copay or percentage for each covered drug. Once you've spent $2,100 (up from $2,000 in 2025), your plan will cover 100% of your remaining covered prescription drug costs for the year. No matter what, you won't spend more than $2,100 out-of-pocket for covered prescription drugs.

Good news: lower drug prices and more

Starting in 2026, the federal government will negotiate lower prices for 10 of the most expensive drugs. Over time, more drugs will be added to this list, which could lead to even more savings for you when you pick up your prescriptions.

Insulin and vaccines remain affordable

The good news continues for insulin and vaccines:

• Insulin products covered by your plan are still capped at $35 per month.
• Recommended vaccines remain at no cost, with no deductible.

Premium changes: What to expect

The Inflation Reduction Act also limits how much your premiums can increase. By law, premiums can't rise more than 6% on average. However, your individual plan's premium might increase more or less than this average, depending on your insurance company's expectations. If you see a big jump, it might be worth exploring other plan options in your area.

Easier payment options

If you're struggling with high out-of-pocket drug costs, you can now spread your payments throughout the year. This prescription payment plan allows you to pay in monthly installments instead of all at once at the pharmacy. You can opt-in at any time by contacting your prescription drug plan.

What you should do

Keep an eye out for information from your insurance company about changes to your drug plan. If your current plan isn't working for you or your budget, don't hesitate to reach out to Alight for help exploring other options in your area.

By staying informed and exploring your options, you can make the most of these changes and save money on your prescription drugs in 2026.