UnitedHealth Group commissioned Milliman to compare average annual beneficiary healthcare spending under various Medicare coverage options available to the Medicare-eligible population in 2026. This report is an update to a prior analysis that studied the 2025 landscape. The analysis focuses on beneficiaries originally eligible for Medicare due to age rather than disability or other reasons and who are not eligible to receive income-based assistance for medical costs (non-dual).
We compared estimated 2026 annual healthcare spending under the following coverage options: Medicare Advantage and Prescription Drug (MA-PD) plan, traditional Medicare with a standalone Medicare prescription drug plan (PDP), and traditional Medicare with Medigap Plan G and a PDP. We also estimated average annual spending under the same coverage options for 65- to 70-year-old beneficiaries and 80‑ to 85-year-old beneficiaries.
For 2026, we estimate the following annual healthcare costs for an average-aged and non-dual Medicare beneficiary:
- MA-PD: $4,027
- Traditional Medicare with PDP: $6,842
- Traditional Medicare with Medigap Plan G and PDP: $8,254
This report was commissioned by UnitedHealth Group.