Premiums are up, and benefits are down. If you’ve noticed this trend, you’re not the only one. Could we be in a Medicare recession in Nevada? According to projections, it looks like we might be. And unfortunately, it’s showing no signs of changing in the near future.
What’s Causing the Medicare Recession in Nevada?
Just like an economic recession, there’s not one single cause for the Medicare recession in Nevada. Rather, it’s a host of compounding factors all working together to cause increased costs to both healthcare providers, which in turn increases costs and reduces benefits for members.
Factors with the largest impacts on Medicare and healthcare costs include:
- Inflation Reduction Act
- Big Beautiful Bill
- Delayed COVID claims
- CMS reimbursement cuts
- Weakened economy
And to make matters worse, this isn’t a contained issue that only affects one type of Medicare. The current Medicare recession affects both Medicare Advantage and Medicare Supplement plans.
Impacts on Medicare Advantage
Cost and access for Medicare Advantage plans will likely change with the Medicare Recession in Nevada. Many carriers are reducing some of their “extra benefits” to cut costs, including:
- Over the Counter (OTC) benefits
- Dental
- Vision
- Hearing aid benefits
In addition to reducing benefits, members may notice a reduction in network access as well. Carriers are scaling back their networks to include fewer dental and medical providers, making it difficult for many members to find in-network care.
Medicare Advantage plans aren’t the only ones to see changes with the Medicare recession in Nevada; Medicare Supplement and Part D plans will also be impacted.
Impacts on Medicare Supplement and Part D Drug Plans
When it comes to Medicare Supplement plans, most carriers are increasing their rates by 20-40% going into 2026. Although rates are increasing faster than normal, the network list and benefits cannot be changed by the insurance company; they’re decided by the government at the Centers for Medicare & Medicaid Services (CMS), meaning members shouldn’t worry too much about massive changes at least for the 2026 year. Medicare Plan G is still the most popular supplement plan.
Medicare Part D is currently going through a complete restructuring with new deductibles or coinsurance percentages to replace the current first dollar copay coverage. Preliminary reports state that Part D drug plan premiums will increase by 100-300% with reduced formularies and more deductible requirements, as well.
How Long with the Medicare Recession in Nevada last?
Of course, there’s no way to predict how long a recession will last with complete accuracy. However, current projections suggest that it will likely last for another 2-4 years. The “Medicare Gold Rush” of 2017-2021 is officially over, and the Medicare recession has begun.
And the current Medicare recession in Nevada and across the country isn’t the only downturn in the healthcare industry. Other insurance markets, like individual and family and group plans, are also dealing with double-digit increases as well.
What to Expect Going into 2026
With a Medicare recession in Nevada in full swing, the best thing you can do is to be prepared and understand what’s coming. Going into 2026, Medicare members should expect to see higher out-of-pocket costs for almost all Medicare plans across the country — not just in Nevada. You should also keep an eye on your current plan offerings for changes in benefits or network access.
If you qualify for a Chronic Condition Special Needs (CSNP) Medicare Advantage plan, you may be able to increase your savings through the current Medicare recession in Nevada.
Especially at uncertain times like these, it’s more important than ever to work with a local insurance agent. At Health Benefits Associates, we closely monitor all changes in the current healthcare landscape to ensure our clients get the best coverage for their unique needs. Contact us at 775-828-1216 to schedule an appointment to discuss your options.