The drug coverage provided by Medicare Part D is a key part of a retiree’s health insurance, and there are many options to choose from for those who have standalone Part D plans. Since these plans can change from year to year – sometimes dramatically – switching plans may offer big savings.

Plan features that may vary include premiums, deductibles, copays, pharmacy networks, and even which medications are covered. As a result, a plan that worked well for you in 2025 may not be the best choice in 2026.

During Medicare’s fall open enrollment period (October 15 through December 7 every year), enrollees can review their coverage and, if needed, switch plans.

How Does Drug Coverage Fit Into Medicare?

Navigating Medicare can be complex. Original Medicare covers hospital and medical insurance, but not prescription drugs. You have a few ways to obtain drug coverage, but two of them are most common. First, you can pick a Medicare Advantage plan – an alternative to original Medicare that typically includes a specific form of drug coverage. Or, second, you can stay with original Medicare and choose your own standalone Part D plan. About one-third of beneficiaries go with this latter option, so they are the ones who can decide to switch each year.

Picking a Standalone Part D Plan

Because insurers offer different levels of drug coverage, it often pays to shop around. The Medicare Plan Finder tool at medicare.gov makes this process easier. You can log in to save your information, or you can explore options without logging in.  The search process requires just a few steps:

• You’ll start by entering your zip code.
• Next, add all medications you are currently taking: the names, dosage, and frequency of use.  This factor is the most important one when selecting the right plan because your costs can vary widely depending on your medications.
• Next, you add the names of pharmacies that you prefer. Part D plans often have preferred pharmacies where co-pays may be lower.
• The tool will then bring you to a list of available drug plans and provide the monthly plan premium, the total deductible, and the estimated total annual cost for all prescriptions and premiums.

You can click into the “Plan Details” and explore how projected costs are calculated. Are your drugs covered? How much do monthly premiums vary? What should you expect to pay out-of-pocket from month to month? Make sure you’re not choosing a plan based solely on the cost of the monthly premiums. The all-in cost with co-pays is more informative.

Once you’ve decided on a plan, you can enroll right from the website. You may need to provide your Medicare number, information about your other health coverage, and when the changes are to take effect (January 1, 2026 for those switching during the fall open enrollment).

Why Go Through the Hassle?

If you already have a Part D plan, it may be tempting to stick with what you’ve got. But costs and coverage shift annually. 

For example, from year to year, any plan might change its list of covered medications by adding or dropping options, moving them to a higher or lower-cost tier, or adding new restrictions (like prior authorization). Plans can also raise or lower monthly premiums, deductibles, and co-pays, which means your projected costs can change even if your medications are the same. 

In addition, new plans enter the marketplace and old plans leave every year. Reviewing your alternatives ensures you don’t get stuck in an outdated or overpriced plan.

Finally, if you are taking any new prescriptions, check your options. You may find a new plan that covers your new medications at a lower overall cost.

People I’ve worked with to explore their options can often find cost savings, sometimes as high as $600 per year, depending on their circumstances and medications. According to data from KFF, nearly half of beneficiaries who switched Part D plans saw a decrease of at least 5 percent the following year.

Even if your prescriptions stay the same, reviewing your plan during open enrollment ensures your medications remain covered and may be more cost-effective. A quick check on Medicare’s website could make a real difference in your costs next year.

Luke Delorme, CFP® is Director of Financial Planning at Tableaux Wealth in Great Barrington, MA (www.tableauxwealth.com), reachable at luke@tableauxwealth.com. To stay current on the Squared Away blog, join our free email list.

This blog post is for informational and educational purposes only and should not be considered financial advice. Consult a qualified professional for advice specific to your situation.