Updated 9/19/2026 – See update to UMP Classic Medicare with Part D 2026 premiums at bottom.
This week, the Public Employees Benefits Board (PEBB) approved 2026 premium rates for Medicare-eligible insurance plans for public sector retirees who receive their insurance through the Washington Health Care Authority (HCA).
The most notable outcome of the PEBB meeting was the proposed 2026 premiums for the Uniform Medical Plan (UMP) Classic Medicare with Part D prescription drug coverage. The 2026 premium will be $369.92, down $49 from the 2025 premium of $419.36, bringing the premiums for this popular plan almost back to 2022 levels. The UMP Classic Medicare plan was the only plan that saw a price decrease. The other plans all had increased monthly premiums, varying from $3 to $43.
The reduction in the UMP Classic Medicare plan premium was due in part to UMP participating in the three-year premium stabilization demonstration announced by the Center for Medicare and Medicaid Services (CMS) in 2024 as part of the Inflation Reduction Act. This demonstration resulted in the reduction of UMP Classic Medicare premiums in 2025 and again in 2026. However, due to the passing of the federal reconciliation budget bill and other factors, it is unclear whether this stabilization demonstration will continue through 2026 and 2027.
PEBB also voted to maintain the current Medicare Explicit Subsidy of $183. Due to plan premium increases, the full subsidy now applies to five plans. The Medicare Explicit Subsidy is applied at $183 or 50% of the premium, whichever is less. RPEC fought during the 2025 Legislative Session to keep the Medicare Explicit Subsidy at $183, as HCA proposed a $90 subsidy, a cut to the subsidy of almost half, during the early state budget proposals, as directed by Governor Ferguson, who asked agencies to suggest budget cuts. See the Executive Director’s Report for July 2025 on the RPEC website for additional information.
Open enrollment for 2026 PEBB insurance plans is from October 27 – November 24, 2025. Visit our Open Enrollment for more information.
UPDATE (September 19, 2025)
HCA was able to decrease the previously approved UMP Classic Medicare with Part D monthly premiums for 2026! HCA has the authority to lower the 2026 premium if the Centers for Medicare and Medicaid Services (CMS) continues the Medicare Part D Premium Stabilization Demonstration. CMS published the 2026 Medicare Part D direct subsidy amount and parameters for year two of the Part D Premium Stabilization Demonstration. Combined, these CMS updates allow for an additional $32.25 decrease to the Uniform Medical Plan Classic Medicare with Part D (PDP) 2026 monthly premium authorized by the PEB Board on July 10.
