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Medicare Minute
By Joe Ray | Published April 2026 | 7 min read
Staying healthy starts with knowing what benefits are available to you.
Key Takeawaysπ
β’ New for 2026: Medicare now covers CT colonography β a simpler, less invasive way to screen for colon cancer, at no cost to you.
β’ Advanced Primary Care Management is a brand-new benefit that helps coordinate your care with your doctor’s team around the clock.
β’ Your Annual Wellness Visit is still free β and it’s one of the most powerful tools for catching problems early.
β’ Telehealth coverage has been extended through December 31, 2027 β a lifeline for rural Alabama communities.
If there’s one thing folks around here know, it’s this: an ounce of prevention is worth a pound of cure. Whether it’s checking the weather before planting season or getting your truck serviced before a long trip, taking care of things early just makes good sense. The same goes for your health.
The truth is, preventive care saves money and saves lives. Catching something like high blood pressure, diabetes, or cancer in its early stages can mean the difference between a simple treatment and a long, expensive battle. And the good news?
Medicare picks up the tab for a whole lot of preventive services β many at absolutely no cost to you.
Even better, Medicare has expanded its preventive care coverage for 2026 with some real game-changers. New screenings, new care coordination benefits, and extended telehealth access are all designed to help you stay healthy and get the care you need β right here in Alabama. Let’s walk through what’s new, what’s still available, and how you can make the most of every benefit you’ve earned.
New for 2026: CT Colonography Coverage
Let’s be honest β a lot of folks have been putting off their colonoscopy. Maybe you’ve heard stories from friends at church, or the idea of the preparation just doesn’t appeal to you. You’re not alone. But here’s the thing: colorectal cancer is one of the most preventable cancers out there, if you get screened.
That’s why this new benefit is such a big deal. Starting in 2026, Medicare covers computed tomography (CT) colonography β sometimes called a “virtual colonoscopy.” Instead of a traditional scope, this screening uses X-rays and advanced computer technology to create detailed images of your colon and rectum. It can find polyps (those little growths that can turn into cancer), ulcers, and cancer itself.
Here’s how the coverage works:
β High-risk individuals age 45 and older: Covered every 24 months (that’s every 2 years).
β Average-risk individuals: Covered every 60 months (every 5 years), or 48 months after a previous sigmoidoscopy or colonoscopy.
β Cost to you: Nothing β as long as your doctor or healthcare provider accepts Medicare assignment.
If you’ve been dragging your feet on colorectal screening, this could be the option that finally gets you in the door. Talk to your doctor about whether CT colonography is right for you. It’s quick, it’s covered, and it could save your life.
Advanced Primary Care Management Services
Here in rural Alabama, we know that getting to a doctor can sometimes be half the battle. Maybe your primary care doctor is in one town, your heart specialist is an hour in another direction, and your pharmacy is somewhere in between. Coordinating all of that care can feel like a full-time job.
That’s exactly why Medicare’s new Advanced Primary Care Management (APCM) benefit matters so much. This is a brand-new service for 2026 that helps pay for your doctor’s team to coordinate and manage all of your healthcare needs in a more hands-on way.
When your provider offers APCM services, you get:
β 24/7 access to your care team or provider β so you can reach someone when you need help, not just during office hours.
β Comprehensive care management β your doctor’s office takes a more active role in managing your overall health, not just the problem you came in for.
β Medication management β especially important if you’re taking several prescriptions and need help making sure they all work well together.
β Coordination between your doctors β so your primary care provider, specialists, and other caregivers are all on the same page.
For folks managing multiple chronic conditions β like diabetes and heart disease together, which is all too common in our part of the state β this kind of coordinated care can be life-changing. Instead of feeling like you’re juggling everything yourself, you have a team looking out for you. Ask your doctor if they’re offering Advanced Primary Care Management services this year.
Your Annual Wellness Visit β Still Free and More Important Than Ever
Your Annual Wellness Visit is covered at no cost β and it’s your best opportunity to build a personalized prevention plan.
Now, I want to make sure we clear up a common misunderstanding. Your Annual Wellness Visit is not the same thing as a regular checkup or physical exam. It’s a special visit designed to focus entirely on prevention β and it’s covered by Medicare at no cost to you. No copay, no deductible.
During your Annual Wellness Visit, your healthcare provider will:
β Review your complete medical and family history.
β Create or update your personalized prevention plan β a roadmap of the screenings, vaccines, and services you need based on your health and risk factors.
β Perform a health risk assessment β checking things like your risk for falls, depression, and other conditions.
β Conduct cognitive screening β a quick check on your memory and thinking that can catch early signs of issues like Alzheimer’s.
β Update your list of current providers and prescriptions.
β Review your ability to perform daily activities safely.
Think of it this way: this is your chance to sit down with your doctor and make a plan for the year ahead. Bring your questions. Bring your concerns. Bring the list of medications on your kitchen counter. This visit is for you, and it doesn’t cost you a dime.
If you haven’t scheduled your 2026 Annual Wellness Visit yet, now’s the time.
Cancer Screenings Medicare Covers
Early detection is everything when it comes to cancer. Finding it sooner almost always means more options, better outcomes, and less expense. Medicare covers several important cancer screenings β and most of them cost you nothing.
Screening
Who’s Eligible
How Often
Your Cost
Mammograms
Women age 40 and older
Once every 12 months
$0 (with assignment)
Colorectal Screenings (including new CT colonography)
Adults age 45 and older
Varies by test and risk level
$0 (with assignment)
Prostate Cancer Screening (PSA test + digital rectal exam)
Men age 50 and older
Once every 12 months
$0 for PSA test
Lung Cancer Screening (low-dose CT scan)
Adults 50β77 with significant smoking history
Once every 12 months
$0 (with assignment)
Don’t put these off. I’ve seen too many families in our community affected by cancers that could have been caught earlier. These screenings are covered because they work β and they’re there for you to use.
Cardiovascular and Diabetes Screenings
Heart disease and diabetes are two of the biggest health challenges facing Alabamians. According to public health data, our state has some of the highest rates of both conditions in the nation. That’s not a statistic to be scared of β it’s a reason to take advantage of every screening Medicare offers.
Here’s what’s covered:
β Cardiovascular screenings β including cholesterol, lipid, and triglyceride levels β covered once every 5 years at no cost to you.
β Blood pressure screening β included as part of your wellness visit.
β Diabetes screenings β including fasting glucose tests β covered up to twice per year if your doctor determines you’re at risk.
β Diabetes self-management training β if you’re diagnosed, Medicare helps cover training on how to manage your condition day to day.
If you know heart disease or diabetes runs in your family β and around here, that’s a lot of us β these screenings are your first line of defense. Knowing your numbers gives you and your doctor the information you need to act before a small problem becomes a big one.
Telehealth Updates: Extended Through 2027
If you live out in Escambia County, Monroe County, or any of our more rural areas, you know that a doctor’s appointment can mean a half-day affair β driving to the clinic, waiting, driving home. That’s exactly why telehealth has been such a blessing.
Great news: Medicare’s expanded telehealth coverage has been extended through December 31, 2027. That means you can continue to see your doctor from the comfort of your living room using a phone or video call for many types of visits. This applies to:
β Follow-up appointments and check-ins.
β Behavioral and mental health visits β these are permanently covered via telehealth.
β Chronic care management consultations.
β Audio-only phone calls for those without video capability.
This is especially important for folks who have trouble getting around, don’t drive, or live a long way from their provider. You’ve earned these benefits β don’t let distance keep you from using them.
How to Make the Most of Your Medicare Preventive Benefits
All of these benefits are only valuable if you actually use them. Here are some practical tips to help you get every dollar’s worth out of your Medicare coverage:
1. Keep a screening checklist. Write down which screenings you’ve had and when they’re due again. Tape it to your refrigerator if that helps β whatever works for you.
2. Bring a list of questions to your Annual Wellness Visit. This is your time with your doctor. Don’t be shy about asking what screenings you should be getting or what new benefits might apply to you.
3. Ask about “no-cost” services specifically. Tell your provider you want to make sure you’re using all your preventive benefits that are covered at no charge.
4. Know the difference between “preventive” and “diagnostic.” A screening that’s free as prevention may trigger a cost if it turns into a diagnostic procedure. Your doctor’s office can explain this before your visit.
5. Use telehealth when it makes sense. Not every visit requires a trip to the office. Ask your provider if your next follow-up can be done by phone or video.
6. Review your Medicare plan annually. Benefits change, and so do your health needs. A yearly review ensures you have the right coverage.
A Friendly Reminderπ‘
Medicare’s preventive services are designed to keep you healthy β not just treat you when you’re sick. Using them regularly is one of the smartest financial and health decisions you can make. Think of it as good stewardship of the benefits you’ve worked a lifetime to earn.
We’re Here to Help You Navigate Medicare
I know Medicare can feel overwhelming sometimes. Between Part A, Part B, Medigap, Medicare Advantage, and Part D β plus all the changes every year β it’s a lot to keep straight. That’s what we’re here for.
As your local independent insurance broker right here in Alabama, we work for you β not for any one insurance company. We’ll sit down with you, review your current coverage, walk through these new 2026 benefits, and make sure you’re not leaving any money or protection on the table.
Ready to make sure you’re getting the most out of your Medicare? Give us a call or stop by the office for a free, no-obligation Medicare review. We’ll bring the coffee β you just bring your questions.
Because around here, taking care of our neighbors isn’t just good business. It’s who we are.
This blog post is for informational purposes only and is not intended as medical or legal advice. Medicare coverage details are subject to change. Please consult Medicare.gov or contact a licensed insurance professional for the most current information about your specific coverage. [Broker Name] is a licensed independent insurance broker and is not affiliated with or endorsed by Medicare or any government agency.
Medicare update
Medicare Part D Cost Changes for 2026: How Alabama Seniors Can Save on Prescriptions
By Joe Ray | Published April 20, 2026 | 7-Minute Read
The 2026 Medicare Part D changes are putting real savings in the hands of Alabama seniors at pharmacies across the state.
Key Takeaways
β’ Your out-of-pocket costs are capped at $2,100 in 2026 β once you hit that limit, you pay $0 for covered Part D drugs the rest of the year.
β’ Average Part D premiums are dropping β standalone plan premiums decreased from about $38/month in 2025 to roughly $34.50/month in 2026.
β’ Medicare negotiated prices on 10 high-cost drugs for the first time ever β discounts range from 38% to 79% off list prices.
β’ A new payment plan lets you spread costs across the year in monthly installments β no interest, no fees.
If you’re like most folks I talk to here in Alabama, prescription drug costs are one of your biggest worries. Whether you’re picking up your blood pressure medicine at the local pharmacy in town or getting a specialty medication shipped to your door, the cost of staying healthy shouldn’t keep you up at night.
Well, I’ve got some genuinely good news. Thanks to the Inflation Reduction Act that was signed into law back in 2022, the year 2026 brings the most significant changes to Medicare Part D that we’ve seen in the program’s history. These aren’t small tweaks β they’re real, meaningful savings that will put money back in your pocket.
I’ve spent the last several months studying these changes inside and out so I can help my neighbors and clients understand exactly what’s coming. Let me walk you through everything you need to know β in plain English, no Medicare jargon required.
The Big News β Your $2,100 Out-of-Pocket Cap
This is the change that has my phone ringing off the hook, and for good reason. In 2026, there is a hard cap of $2,100 on what you’ll pay out of pocket for your Part D-covered prescription drugs for the entire year. Once you reach that limit, you pay $0 β nothing, zero, zilch β for covered medications for the rest of the year.
Now, this cap was $2,000 in 2025 when it first went into effect. The slight increase to $2,100 for 2026 is just a standard inflation adjustment, which CMS calculates based on the annual percentage increase in average drug expenditures. But here’s the important part: before this cap existed, there was no real limit on what you could spend. Some folks on expensive medications were paying $10,000, $15,000, or even more each year out of their own pockets. Those days are over.
What counts toward your $2,100 cap:
β Your annual deductible payments (up to $615 in 2026)
β Your copays at the pharmacy
β Your coinsurance (the percentage you pay for covered drugs) What does NOT count toward the cap:
β Your monthly Part D premium
β
Costs for drugs not on your plan’s formulary (covered drug list)
This is a game-changer for people on expensive medications for conditions like cancer, rheumatoid arthritis, multiple sclerosis, and diabetes. I had a client right here in Escambia County who was paying over $8,000 a year for her cancer medication alone. Under the new rules, her total out-of-pocket cost for all her Part D drugs is capped at $2,100. That’s real money staying in her pocket where it belongs.
And here’s the best part β you don’t have to sign up for anything special. Your Part D plan automatically tracks your spending and applies the cap. When you hit $2,100, you’re done paying for the year.
Lower Premiums β More Money in Your Pocket
Here’s another piece of welcome news: Part D premiums are going down, not up. I know that probably sounds too good to be true β when’s the last time any insurance cost went down? But it’s real.
According to CMS, the numbers look like this for 2026:
Plan Type
2025 Average Monthly Premium
2026 Average Monthly Premium
Change
Standalone Part D Plans (PDP)
~$38.31/month
~$34.50/month
Down ~$3.81/month
Medicare Advantage with Drug Coverage (MA-PD)
~$13.32/month
~$11.50/month
Down ~$1.82/month
That might not sound like a fortune, but for someone on a fixed income β and I know many of you are β saving $45 or more a year on premiums adds up. That’s gas money, groceries, or a nice dinner out with your grandchildren.
Now, I do want to mention that the number of standalone Part D plans available nationwide has dropped from 464 in 2025 to 360 in 2026. Some insurance companies have scaled back their offerings or left the market. But the plans that remain are generally more competitive, and here in Alabama, you’ll still have a solid range of choices β between 8 and 12 standalone plans depending on your region, plus plenty of Medicare Advantage options.
This is exactly why it’s so important to review your plan each year during Open Enrollment. The plan that was best for you last year might not be the best deal this year β and there might be a new option that saves you even more.
Medicare’s First-Ever Negotiated Drug Prices
This one is truly historic, and I don’t use that word lightly. For the first time in the program’s history, Medicare has directly negotiated the prices of prescription drugs with pharmaceutical companies. The negotiated prices for the first 10 drugs took effect on January 1, 2026.
These are all high-cost, brand-name drugs that don’t have generic competition β the kind of medications that have been hitting people’s wallets the hardest. The discounts Medicare negotiated range from 38% to 79% off the list price. Here are the 10 drugs and their new negotiated prices for a 30-day supply:
Drug Name
Common Use
Negotiated Price (30-Day Supply)
Eliquis
Blood clots, stroke prevention
$231
Jardiance
Type 2 diabetes, heart failure
$197
Xarelto
Blood clots, stroke prevention
$197
Januvia
Type 2 diabetes
$113
Farxiga
Type 2 diabetes, heart failure, kidney disease
$178.50
Entresto
Heart failure
$295
Enbrel
Rheumatoid arthritis, psoriasis
$2,355
Imbruvica
Blood cancers
$9,319
Stelara
Psoriasis, Crohn’s disease
$4,695
NovoLog / Fiasp
Diabetes (insulin)
$119
In 2023 alone, about 9 million Medicare enrollees used these 10 drugs, and they accounted for roughly $56.2 billion in total Part D spending β about 20% of all Part D drug costs. These savings are significant.
If you’re taking any of these medications, you should be seeing lower costs at the pharmacy. And the program is expanding β CMS will negotiate prices on up to 15 more drugs for 2027, and even more in the years after that.
Check Your Medications
Take a look at the table above. If you or a loved one takes any of these 10 drugs, the negotiated prices are already saving you money in 2026. If you’re not sure how the new pricing affects your specific plan costs, give me a call β I’m happy to look it up for you.
The Medicare Prescription Payment Plan β Spread Your Costs
Here’s something that I think is especially helpful for folks living on Social Security and a fixed income. The Medicare Prescription Payment Plan lets you spread your out-of-pocket drug costs across the year in manageable monthly installments, instead of getting hit with a big bill all at once at the pharmacy.
Think about it this way: if you take an expensive medication and you hit your $2,100 out-of-pocket cap in January or February, that’s a tough pill to swallow β pun intended β all at once. With this payment plan, you could spread that $2,100 across 12 months at about $175 per month. Even if you don’t sign up until partway through the year, you can still spread the remaining costs over the months left.
Here’s what you need to know about the payment plan:
β It’s available through every Part D plan β whether you have a standalone plan or Medicare Advantage with drug coverage.
β There’s no interest and no fees. This isn’t a loan or a credit card β it’s simply a way to smooth out your payments.
β You’ll get a monthly bill from your plan instead of paying the full cost at the pharmacy counter.
β You can sign up at any time during the year by contacting your Part D plan directly.
β Participation is completely voluntary.
I strongly encourage anyone who takes expensive medications to look into this option. It won’t lower your total costs, but it makes those costs a whole lot easier to manage month to month. And the earlier in the year you sign up, the more months you have to spread out the payments.
Expanded Extra Help for Low-Income Beneficiaries
If you’re living on a limited income β and I know many of our Alabama seniors are β the Extra Help program (also called the Low-Income Subsidy, or LIS) can
dramatically reduce your Part D costs. And thanks to the Inflation Reduction Act, this program was expanded starting in 2024, and those expanded benefits continue in 2026.
Here’s the bottom line: if you qualify for Extra Help in 2026, you pay:
β No premium for your drug plan
β No deductible
β No more than $5.10 for generic drugs
β No more than $12.65 for brand-name drugs
That’s a tremendous benefit. The Social Security Administration estimates that Extra Help has an average annual value of about $5,700 per person.
Who qualifies? You may be eligible if your income is below 150% of the Federal Poverty Level. For 2025 reference guidelines (2026 guidelines are similar):
Household Size
Annual Income Limit (150% FPL)
Individual
$23,475
Married Couple
$31,725
Resource limits also apply, but the thresholds are generous. And here’s something important: the old “partial” Extra Help category was eliminated in 2024. That means if you used to get partial benefits, you now likely qualify for full Extra Help benefits.
If you think you might qualify β or even if you’re not sure β it’s absolutely worth applying. You can apply online through the Social Security Administration, visit your local Social Security office, or call me and I’ll help walk you through it.
Insulin Stays at $35 per Month
If you or someone you love uses insulin, you already know how expensive it can be. The good news is that the $35 per month cap on insulin cost-sharing that went into effect in recent years continues in 2026. No matter what insulin you use, no matter what Part D plan you’re on, you won’t pay more than $35 for a month’s supply.
Here in Alabama, where diabetes rates are among the highest in the nation, this is a provision that’s helping a lot of our neighbors. I’ve talked to folks who used to pay $200, $300, or more per month for insulin. Now it’s $35. Period.
Additionally, most adult vaccines recommended by the Advisory Committee on Immunization Practices continue to be covered under Part D with no cost-sharing. That includes your shingles vaccine, which used to cost over $200 out of pocket.
What You Should Do Now
All of these changes are good news, but they don’t mean you can just set it and forget it. Medicare is complicated, and making sure you’re on the right plan for your specific medications and needs is just as important as ever. Here are the steps I recommend:
1. Review your current plan’s formulary. Make sure all your medications are still covered and check which cost tier they’re on. Formularies can change from year to year.
2. Check if your medications are on the negotiated price list. If you take any of the 10 drugs listed above, verify that your plan is applying the new lower prices correctly.
3. Consider the Medicare Prescription Payment Plan. If you have high drug costs early in the year, contact your plan about spreading payments out monthly.
4. Apply for Extra Help if you might qualify. Even if you’re not sure you meet the income limits, it costs nothing to apply and the savings can be substantial.
5. Mark your calendar for Open Enrollment β October 15 through December 7, 2026. This is your annual window to compare plans and switch if there’s a better option for you.
6. Call me for a free, no-obligation plan comparison. I work with multiple insurance carriers, and I’ll sit down with you β at your kitchen table, at my office, or over the phone β and help you find the plan that saves you the most money.
Don’t Wait Until Open Enrollment
Even though Open Enrollment isn’t until October, now is a great time to review your current coverage and make sure you’re taking advantage of all the new benefits available to you in 2026. If you’re overpaying right now, let’s fix that.
Let’s Make Sure You’re Getting Every Dollar of Savings
I’ve been helping folks right here in Alabama navigate Medicare for years, and I can tell you β these 2026 changes are the real deal. Between the $2,100 out-of-pocket cap, lower premiums, negotiated drug prices, the new payment plan, and expanded Extra Help, there are more ways to save on your prescriptions than ever before.
But here’s the thing: every person’s situation is different. The plan that’s perfect for your neighbor might not be the best fit for you. That’s where I come in. As an independent broker, I’m not tied to any one insurance company. I work for you β comparing plans across multiple carriers to find the one that covers your medications at the lowest total cost.
There’s never a fee for my help, and I’m always happy to answer questions β whether you’re a current client or just someone in the community who needs a hand understanding their Medicare options. Give me a call, stop by the office, or send me a message. I’m here to help.
Ready to see how much you could save? Contact me today for a free, personalized Part D plan review.
This blog post is for informational purposes only and is not intended as medical or legal advice. Medicare coverage details are subject to change. Please consult Medicare.gov or contact a licensed insurance professional for the most current information about your specific coverage. [Broker Name] is a licensed independent insurance broker and is not affiliated with or endorsed by Medicare or any government agency.
retirement income tips
Retirement Income Planning for 2026: A Practical Guide for Alabama Families
By Joe Ray | April 20, 2026 | 10 min read
Retirement should feel like this β peaceful, secure, and well-earned.
Key Takeaways
β’ Social Security benefits got a 2.8% cost-of-living raise for 2026 β but it’s meant to keep up with inflation, not get ahead of it.
β’ Medicare Part B premiums rose to $202.90/month β and they come straight out of your Social Security check, so plan for your net benefit.
β’ New “super catch-up” contributions let workers ages 60β63 put away up to $35,750 in their 401(k) for 2026.
β’ A simple 3-bucket strategy can help you build retirement income that’s both secure and flexible enough to last.
If you’ve spent your life working hard β whether that’s on a family farm outside Monroeville, in a plant down in Mobile, or running a small business right here in our corner of Alabama β you know that nothing worth having comes easy. That includes a comfortable retirement.
Here’s the thing most folks don’t realize until they’re close to the finish line: retirement planning isn’t just about saving money. It’s about making the money you’ve saved work for you β month after month, year after year β so it lasts. It’s about turning a nest egg into a reliable paycheck that covers your bills, your health, and maybe a fishing trip or two.
The year 2026 has brought some important updates to Social Security, Medicare, and retirement contribution rules that every Alabama family should understand. Whether you’re five years out from retirement or already collecting benefits, these changes matter. Let’s walk through them together β no fancy financial jargon, just straight talk.
Social Security in 2026 β What’s Changed
Let’s start with the news most retirees were waiting for: the 2026 Social Security cost-of-living adjustment (COLA) came in at 2.8%. That means if you were receiving the average retired worker benefit of about $2,015 per month in 2025, your check went up to roughly $2,071 per month starting in January 2026.
Now, I know what you’re thinking β “That’s only about $56 a month.” And you’re right, it’s not a windfall. Here’s what’s important to understand: the COLA isn’t a raise. It’s inflation protection. It’s designed to keep your benefits from losing
purchasing power as prices go up. When you see grocery prices creep higher at the Piggly Wiggly, that COLA is trying to keep pace.
Here’s something else worth knowing: Social Security was never designed to be your entire retirement paycheck. For most people, it replaces only about 40% of your pre-retirement earnings. That means you need other income sources to fill the gap β and we’ll get to those strategies shortly.
Delayed Claiming Can Pay Offπ‘
For every year you delay claiming Social Security past your full retirement age (up to age 70), your benefit grows by about 8% per year. That’s a guaranteed increase you won’t find in any savings account. If you’re healthy and can afford to wait, delaying can mean hundreds more per month for the rest of your life.
Coordinating Medicare and Social Security β The Connection Most Folks Miss
Here’s where things get interesting β and where I see a lot of people get caught off guard. Medicare and Social Security are more connected than most folks realize.
If you’re already receiving Social Security when you turn 65, you’ll be automatically enrolled in Medicare Parts A and B. That’s convenient, but here’s the part that surprises people: your Medicare Part B premium β $202.90 per month in 2026 β gets deducted directly from your Social Security check.
So that $2,071 average monthly benefit? After the Part B premium, you’re actually taking home closer to $1,868. That’s your net Social Security β and that’s the number you should use when you’re building a retirement budget.
What Is IRMAA β and Why Should You Care?
IRMAA stands for Income-Related Monthly Adjustment Amount, and it’s essentially a surcharge on your Medicare premiums if your income is above certain thresholds. Here’s the kicker: it’s based on your income from two years ago (your 2024 tax return determines your 2026 premiums).
Individual Income (2024)
Married Filing Jointly (2024)
Monthly Part B Premium (2026)
$109,000 or less
$218,000 or less
$202.90 (standard)
$109,001 β $137,000
$218,001 β $274,000
$284.10
$137,001 β $171,000
$274,001 β $342,000
$405.80
$171,001 β $205,000
$342,001 β $410,000
$527.50
$205,001 β $499,999
$410,001 β $749,999
$649.20
$500,000 or above
$750,000 or above
$689.90
This matters because big financial moves β like a large Roth conversion or a lump-sum withdrawal from your 401(k) β can push your income above these thresholds and trigger higher Medicare premiums two years later. It’s one of those things that requires looking around the corner before you act.
Retirement Contribution Limits for 2026
If you’re still working and saving for retirement, 2026 brings some welcome increases to how much you can tuck away. Here’s the rundown:
Account Type
2026 Contribution Limit
Notes
401(k) / 403(b) / 457
$24,500
Up from $23,500 in 2025
Catch-up (ages 50β59)
+ $8,000 = $32,500
Up from $7,500 in 2025
Super catch-up (ages 60β63)
+ $11,250 = $35,750
New under SECURE 2.0!
Traditional / Roth IRA
$7,500
Up from $7,000 in 2025
Account Type 2026 Contribution
Limit
Notes
IRA catch-up (age 50+)
+ $1,100 = $8,600
Up from $1,000 in 2025
That “super catch-up” for ages 60β63 is brand new and a real opportunity. If you’re in that window, you can potentially save an extra $3,250 beyond the standard catch-up β that’s money that grows tax-deferred (or tax-free in a Roth) for years to come.
New Roth Catch-Up Rule for Higher Earnersβ οΈ
Starting in 2026, if your wages exceed $150,000, any catch-up contributions to your 401(k) must be made as Roth (after-tax) contributions. This means your employer’s plan needs to offer a Roth option β check with your HR department to make sure you’re not locked out of catch-up contributions.
The 3-Bucket Income Strategy
Now let’s talk about one of my favorite ways to think about retirement income. I call it the 3-bucket approach, and it’s as practical as it sounds. Think of it like organizing your workshop β everything has a place and a purpose.
Bucket
What Goes In It
Purpose
Bucket 1: Guaranteed Income
Social Security, pensions, annuities
Covers your essential bills β housing, food, utilities, insurance. This is your “keep the lights on” money.
Bucket 2: Growth Investments
401(k), IRA, brokerage accounts
Grows over time to fund your future needs and keep up with inflation. You draw from this strategically.
Bucket 3: Cash Buffer
1β2 years of expenses in
Protects you from having
Bucket What Goes In It Purpose
savings or money market
to sell investments during a market downturn. Your peace-of-mind fund.
Why does this work? Because it gives you the security of knowing your basic needs are covered (Bucket 1), the growth potential to keep up with 20β30 years of inflation (Bucket 2), and a safety cushion so you never have to panic-sell when the market dips (Bucket 3).
It’s the same common sense your grandparents probably practiced β keep some money safe, let some money grow, and always have a rainy-day fund.
Required Minimum Distributions β Don’t Get Caught Off Guard
If you have money in a traditional 401(k) or IRA, the IRS isn’t going to let it sit there forever. Starting the year you turn 73, you’re required to start taking distributions β and paying taxes on them. These are called Required Minimum Distributions (RMDs).
Here’s where folks get tripped up: you can delay your very first RMD until April 1 of the year after you turn 73. Sounds like a nice break, right? But think about it β if you delay your first RMD, you’ll have to take two distributions in the same calendar year. That bunched-up income can:
β Push you into a higher tax bracket β meaning you pay more in federal taxes
β Trigger higher Medicare premiums (IRMAA) β because the extra income shows up on your tax return two years later
β Potentially increase the taxable portion of your Social Security benefits
The lesson? Plan ahead. Talk to a tax professional about whether it makes sense to take your first RMD on time rather than delaying and bunching. Sometimes the “benefit” of delay costs more than it saves.
Healthcare as a Line Item, Not a Guess
One of the biggest mistakes I see in retirement planning? Treating healthcare costs as an afterthought. Folks, healthcare is not a “we’ll figure it out” expense β it’s a specific line item in your monthly budget, and it’s likely one of your biggest.
Here’s what you’re looking at in 2026:
Healthcare Cost
2026 Amount
Medicare Part B premium
$202.90/month
Part B annual deductible
$283/year
Part D (prescription drug) premium
~$34/month (standalone avg.)
Part D out-of-pocket cap
$2,100/year
Medigap (Medicare Supplement) premium
Varies by plan and location
Part A hospital deductible
$1,736 per benefit period
And here’s something that catches a lot of people by surprise: Original Medicare does not cover dental, vision, or hearing in most cases. If you need new glasses, a hearing aid, or a dental crown, that’s coming out of your pocket unless you have a Medicare Advantage plan or separate coverage that includes those benefits.
As your independent insurance broker, this is one of the areas where I can help the most. A thorough Medicare plan review β comparing Medigap plans, Medicare Advantage options, and Part D coverage β can save you hundreds or even thousands of dollars a year.
Steps You Can Take Today
You don’t have to do everything at once. But here are some practical steps you can take right now to put yourself in a stronger position:
1. Review your Social Security statement. Log in to ssa.gov and check your estimated benefits at different claiming ages. Know your numbers.
2. Maximize your retirement contributions. If you’re 50 or older, take advantage of catch-up contributions. If you’re 60β63, that super catch-up could be a game-changer.
3. Schedule a Medicare plan review. Whether you’re turning 65 or already enrolled, an annual review ensures you’re not overpaying or missing coverage you need. That’s what we’re here for.
4. Create a retirement income budget. Write down your expected income sources (Social Security, pensions, investments) and your expected expenses (housing, healthcare, groceries, insurance, fun). See how the numbers line up.
5. Understand your net Social Security. Subtract your Medicare Part B premium from your gross benefit β that’s your real take-home number.
6. Consider working with both a financial advisor and an insurance professional. Retirement planning touches taxes, investments, and healthcare β and each piece affects the others. Having the right team in your corner makes a difference.
Your Retirement Should Be About Living β Not Worrying
You’ve spent a lifetime building something β a career, a family, a home, a place in your community. Retirement should be about enjoying what you’ve built. It should be about Sunday dinners with the grandkids, mornings on the porch with a cup of coffee, and finally having time to do the things you’ve always wanted to do.
That kind of retirement doesn’t happen by accident. It happens when you plan β when you understand how Social Security, Medicare, your savings, and your insurance all work together to create a reliable income you can count on.
Ready to take the next step?
We offer free, no-obligation Medicare plan reviews for individuals and families right here in Alabama. Whether you’re approaching 65, already on Medicare, or just want to make sure your healthcare coverage fits into your overall retirement plan β we’re here to help.
Give us a call or stop by the office. We’re your neighbors, and we’d love to help you make the most of the retirement you’ve earned.
This blog post is for informational purposes only and is not intended as financial, tax, medical, or legal advice. Retirement planning involves complex decisions that should be discussed with qualified professionals. Medicare and Social Security details are subject to change. Please consult Medicare.gov, SSA.gov, or contact a licensed professional for the most current information. [Broker Name] is a licensed independent insurance broker specializing in Medicare and is not affiliated with or endorsed by Medicare, Social Security, or any government agency.