Medicare Advantage Can No Longer Cover These Items in 2026
The Motley Fool••business
Key Points:
- Medicare Advantage Plans, which often offer broader coverage than traditional Medicare, will face new restrictions in 2026 due to updated CMS rules limiting certain supplemental benefits.
- The changes stem from a revision to the 2018 Bipartisan Budget Act provision that allowed Advantage Plans to cover Special Supplemental Benefits for the Chronically Ill, which improve or maintain health but are not directly medical.
- CMS aims to increase transparency and certainty by specifying a nonexhaustive list of services that no longer qualify for coverage under these supplemental benefits.
- Prohibited coverage starting in 2026 includes alcohol, cannabis, cosmetic surgeries (such as facelifts and collagen treatments), funeral costs, hospital indemnity insurance, life insurance, tobacco products, and unhealthy foods
