BIG Medicare news just dropped…
Elevance Health (formerly known as Anthem) has announced that it will be fully exiting the standalone Prescription Drug Plan (PDP) market in 2026.
That means if you have a drug plan with them, you’ll need a new Medicare Part D Prescription Drug plan to continue getting coverage in 2026.
Here’s what you need to know.
What’s Happening
Elevance Health will fully exit the standalone Medicare Part D (PDP) market in 2026, affecting about 400,000 members.
At the same time, Elevance is discontinuing certain Medicare Advantage plans, impacting approximately 150,000 members next year.
The company will refocus on HMO and Dual Special Needs Plans (DSNPs) for 2026.
On the Medicaid side, Elevance confirmed it no longer expects profits from this business to improve in the second half of 2025. However, the company is maintaining its full-year Medical Loss Ratio (MLR) guidance at around 90%, signaling stability in overall cost.
Why It Matters
Prescription Drug Plans (PDPs) are a critical part of Medicare for people who don’t have drug coverage bundled into their Medicare Advantage or Medigap plan.
Elevance’s exit brings several important changes. Starting in 2026, beneficiaries in many states will face fewer standalone PDP options, limiting the choices available for prescription drug coverage. About 400,000 people will need to select new plans ahead of the January 2026 enrollment period to ensure continuous coverage.
What Are Prescription Drug Plans (PDPs)?
Prescription Drug Plans—also called Medicare Part D—are insurance plans offered by private insurers to help cover the cost of prescription medications.
These plans:
- Cover both brand-name and generic drugs
- Work alongside Original Medicare
- Can be paired with Medicare Advantage plans that don’t include drug coverage
- Have monthly premiums, deductibles, and copays that vary by plan
Need Help With Medicare?
If you have any questions about this situation (or Medicare in general), our licensed insurance agents are here to help.
Simply call us at +1 877-360-6565 (TTY: 771) or click the button below to schedule an appointment.