The State of Medicare Supplement: What Agents Should Expect in 2026

October 16th, 2025

2 min read

4:13

As we move toward 2026, the Medicare landscape is shifting once again. CMS has projected a reduction in Medicare Advantage (MA) plans in several markets, signaling tighter competition, possible benefit rollbacks, and renewed consumer interest in plan stability.

For agents, this environment presents an important opportunity to rebalance your portfolio — and reintroduce the value of Medicare Supplement (Medigap) coverage to clients looking for predictability and freedom of choice.

Market Outlook: A Shift Toward Stability

After years of rapid growth in Medicare Advantage, many beneficiaries are beginning to feel the impact of narrower provider networks, changing drug formularies, and rising MOOP limits. These changes are prompting consumers — particularly those aging into Medicare — to take a closer look at traditional Medigap coverage.

While MA plans continue to play an important role, agents should recognize that Medicare Supplement plans offer a long-term anchor in a client’s healthcare strategy, especially for those who value stability, control, and nationwide access to providers.

Why Medicare Supplement Deserves a Second Look

1. Predictable Costs and Strong Retention
Med Supp plans deliver consistent, transparent coverage. Clients appreciate not having to navigate benefit changes each year, and agents benefit from higher persistency and renewals.

2. Freedom of Choice
Unlike many MA plans, Med Supp coverage lets clients see any provider who accepts Medicare — without worrying about network limitations or referrals.

3. Affordable Options With Smart Pairing
For cost-sensitive clients, High-Deductible Plan G (HDG) paired with a Hospital Indemnity Plan (HIP) can be a winning combination. Together, they deliver robust coverage at a lower monthly cost while preserving flexibility and control.

What This Means for Agents

2026 is shaping up to be a year where Medigap makes a comeback. With fewer MA plan options in some regions, you’ll want to ensure your portfolio remains balanced and ready to meet a wider range of client preferences.

Here’s how to stay ahead:

Review your Med Supp carrier lineup. Confirm current rates, underwriting changes, and new competitive entrants in your key markets.
Educate clients. Start conversations about Med Supp stability and rate predictability.
Cross-sell effectively. Position Hospital Indemnity, Dental/Vision, and Life products to complement your clients’ Med Supp plans.
Use digital tools. PSM’s quoting, enrollment, and CRM resources can simplify client comparisons and speed up your sales process.

The Bottom Line

As MA markets fluctuate, Medicare Supplement plans continue to deliver the consistency clients want and the retention agents need. In uncertain times, that’s a combination worth promoting.

Now is the time to refresh your Med Supp strategy, revisit your contracting, and strengthen your client outreach. The agents who start preparing now will be best positioned to capture this wave of renewed interest in 2026.