Big changes continue for Medicare drug coverage in 2026. The coverage gap, also known as the donut hole, was officially eliminated on December 31, 2024. For 2026, Medicare Part D plans include a $2,050 annual cap on out-of-pocket costs for covered prescription drugs.
Once you spend $2,050 out of pocket, including certain payments made on your behalf like Extra Help, you won’t pay anything more for covered drugs for the rest of the year. This makes prescription drug costs more predictable and affordable, especially for those who take high-cost medications.
There’s no more donut hole phase, no more catastrophic coinsurance. Just a clear $2,050 spending limit.
During Medicare Open Enrollment from October 15 to December 7, review your drug coverage to make sure your plan includes the medications you need and aligns with the new cap. The 2026 updates continue to give Medicare beneficiaries a major opportunity to save.