Medicare 2027 Changes for Part D, Medicare Advantage and Your Costs

Medicare 2027 Changes: Medicare open enrollment is under way and runs through December 7, 2026, but this year the choice carries more risk than usual. Millions of people in Medicare Advantage and Part D will see plans, premiums and benefits change on January 1. CMS says the average Medicare Advantage premium should fall 16.5 percent to about $12 a month, and the average stand-alone drug plan premium should rise by less than $1 to $36. Yet the Part D deductible climbs to $700, the yearly out-of-pocket cap rises to $2,400, a federal premium subsidy program ends, and independent estimates say anywhere from 2 million to 5 million people must pick a new Medicare Advantage plan because theirs is leaving. Full details are posted at medicare.gov, and this guide puts the official numbers, and the places where estimates disagree, in plain English so you can decide before the deadline. We’ll be updating this article monthly.zzaq1

The headline averages hide a wide spread. Staying with the same plan is a choice with a price, and the safest habit is to compare before December 7, even if you are happy with your coverage today, because the same plan name can carry a different deductible, network or premium next year. If your plan is ending and you do nothing, NPR reports that your insurer may move you into another Medicare Advantage plan, or the government may place you in Original Medicare without a drug plan or a supplement. Also unsettled is the Part B premium. As of November 8, CMS had not announced the official 2027 amount, so the Trustees projection of $209.50 a month is still an estimate. Below you will find the dates, the official CMS figures, the places where estimates disagree, a step by step enrollment guide, official links, and a calculator that shows what the new Part D rules could cost you.

Medicare 2027 Changes Key Highlights

When Does Medicare Open Enrollment End? Key Dates to Know

The annual coordinated election period lets you join, switch or drop a Medicare Advantage or Part D plan, or move between Medicare Advantage and Original Medicare. Anything you choose by the deadline starts January 1.

The Medicare Advantage open enrollment period is a separate window that lets someone already in an Advantage plan switch to another Advantage plan or return to Original Medicare. It does not let Original Medicare members join Medicare Advantage, so it is a safety net, not a substitute for acting now.

Medicare Advantage 2027: Average Premiums Fall, but the Plan Count Shrinks

CMS released its 2027 plan data on September 28, 2026. The agency projects about 34 million people, or 47.4 percent of Medicare beneficiaries, will be in Medicare Advantage next year. Actual June 2026 enrollment was higher at 36.1 million, so the projection is flat to slightly lower.

CMS also says about 8 in 10 Medicare Advantage members can keep their current plan at the same or a lower premium. For Part D, CMS says 93 percent of beneficiaries without low income subsidies can find an enhanced plan for under $6 a month, and 88 percent can find a basic plan for $10.30 or less.

State averages move in different directions. Becker’s Payer Issues, reporting CMS data, lists the largest premium increases in Wyoming, from $45.91 to $69.23, Idaho, from $27.81 to $37.93, and Connecticut, from $16.89 to $25.31. The largest decreases were in Minnesota, from $69.11 to $59.40, the District of Columbia, from $26.28 to $16.91, and Mississippi, from $11.18 to $4.08. Check CMS’s state fact sheet to confirm which premium measure each figure describes.

How Many People Must Switch Medicare Advantage Plans for 2027?

This is where the numbers disagree, and readers should be wary of any single figure. CMS says plan counts are steady overall. Independent analysts count something different, which is how many people have a plan that is leaving their area.

County level losses are also climbing. NPR, citing KFF, reports 193 counties will have no Medicare Advantage plan in 2027, up from about 120 last year, and most are rural. Straight Arrow News cites KFF at nearly 200 counties and 638,000 beneficiaries, compared with 123 counties and 399,000 people this year. The Center for Medicare Advocacy, citing Modern Healthcare, gives 181 counties, up from 67. The spread reflects different dates and definitions. The consistent message is that the number is higher than in 2026.

KFF also finds the average person will have 28 Medicare Advantage plans with drug coverage to choose from in 2027, down from 32 in 2026 and from a peak of 36 in 2024.

Medicare Part D 2027: $700 Deductible and $2,400 Out-of-Pocket Cap

Part D has a few firm numbers for 2027, set by CMS. The standard deductible rises from $615 to $700, and the yearly cap on what you pay for covered drugs rises from $2,100 to $2,400. Monthly premiums and drugs that your plan does not cover do not count toward that cap. After you reach it, you owe nothing more for covered prescriptions for the rest of the year.

The base premium is a benchmark, not what most people pay. The Inflation Reduction Act limits yearly increases in that benchmark to 6 percent through 2029, which matches the 6 percent rise this year. The national average bid amount is the insurers’ own estimate of what coverage costs, and its 24 percent jump explains a good deal of the pressure on premiums.

Many real plans are not built like the standard benefit. Some have lower deductibles, some use copays, and some are bundled in Medicare Advantage. The standard design is the right place to start for a quick estimate, and your plan’s annual notice of change lists its actual terms.

Premium Stabilization Program Ends: Why Some Drug Plan Premiums May Jump

For 2025 and 2026, a federal demonstration program lowered the base premium and capped how much a plan’s premium could rise in a year. In 2026 it cut the base premium by $10 and limited increases to $50 a year. CMS announced on July 28, 2026 that the program will end after contract year 2026, so those protections expire on December 31.

CMS describes the market as broadly stable, with the average stand-alone premium up less than $1. KFF, however, finds a mixed picture. Six of the eight national drug plans will see premium reductions or slight increases for people who stay put, while some individual plans could rise by $50 a month or more, according to the Center for Medicare Advocacy summary. KFF also reports that no stand-alone drug plan will have a $0 premium for people who do not get low income subsidies.

The number of choices is shrinking, too. The average beneficiary will have 9 stand-alone drug plans in 2027, down from 11 in 2026, which KFF calls the fourth straight yearly decline. This is why checking your own plan’s price matters more than the national average.

Medicare Part D Cost Example: What the 2027 Rules Could Mean for You

The table below shows the standard benefit design and assumes you pay the full deductible and then 25 percent of the remaining drug costs until you hit the cap. It leaves out premiums and plan differences.

The cap is reached at about $7,500 in total drug costs in 2027, compared with about $6,555 in 2026. The yearly maximum is $300 higher. For people with very high drug costs, the cap is still a major protection, because it stops their spending entirely. For people with moderate costs, the higher deductible is what they will notice.

The Medicare Prescription Payment Plan remains available and lets you spread out-of-pocket costs over the rest of the year. It changes when you pay, not how much you owe, and enrolling is voluntary.

Use the 2027 Part D Out-of-Pocket Cost Calculator

The calculator on this page applies the standard 2026 and 2027 Part D rules to your expected yearly drug costs and your plan premium. It shows what you would pay each year, the difference, and the monthly average if you spread the cost. It is a planning tool, not a plan quote. Your plan’s actual deductible, copays and formulary tiers control what you pay, so use Medicare’s Plan Finder with your real prescription list before you decide.

Negotiated Drug Prices Start January 1, 2027 for 15 Drugs

The second round of Medicare drug price negotiation takes effect at the start of 2027. According to the Associated Press, it covers 15 drugs, including Ozempic, Rybelsus and Wegovy, along with Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, Calquence, Austedo, Breo Ellipta, Tradjenta, Xifaxan, Vraylar, Janumet and Otezla. CMS expects the change to lower drug coverage costs for enrollees by about $685 million in 2027.

For you, the effect depends on your plan and drug. Negotiated prices change what insurers pay, and your share is usually a percentage, so savings will vary. If you take one of these medicines, check your plan’s formulary and tier for it rather than assuming the price falls.

Medicare Advantage Costs and Benefits in 2027: Out-of-Pocket Limits Rise

The premium average is only one piece. According to Straight Arrow News, citing Medicare Market Insights, the average maximum out-of-pocket limit for in-network medical care rises 9 percent to $6,603, and about 70 percent of beneficiaries are in plans where the limit goes up. The average drug deductible in Medicare Advantage is projected to rise 23 percent to $509. The same source expects premiums for non special needs plans to rise 23 percent to $14.80, which is the opposite of CMS’s projection. The gap comes from different methods, so read both as estimates.

The Center for Medicare Advocacy adds that insurers are tightening dental allowances, reducing Part B giveback benefits, and moving some members from broader PPO networks into tighter HMOs. CMS, by contrast, says benefits such as hearing, dental and vision should stay steady overall. Because a plan can change both its network and its extras while keeping its name, the annual notice of change is worth reading line by line.

Medicare Part B 2027: What Is Still Not Confirmed

Original Medicare members are waiting on the numbers that most affect a Social Security check.

CMS usually publishes these in mid-November. Treat any website that states a confirmed 2027 Part B premium with caution until you see it on a CMS page.

What to Do If Your Medicare Advantage Plan Is Ending

If you got a letter saying your plan is leaving, you still have options, and the worst move is to wait. NPR offers this guidance:

1. Check your mail for the closing plan letter, which went out in early October, or sign in to your Medicare.gov account.
2. Compare other plans in the Plan Finder, with your doctors and drugs entered.
3. Contact your State Health Insurance Assistance Program, known as SHIP, for free counseling at shiphelp.org.
4. Know your fallback. If you do nothing, an insurer may assign you to another Medicare Advantage plan, or you may end up in Original Medicare with no drug plan or supplement.
5. If you want Original Medicare, ask about a Medigap supplement. NPR notes that people whose plans end may be able to buy one without the usual medical restrictions, which can matter for people with existing conditions.
6. Remember that insurers can cap enrollment in some plans on a first come, first served basis, so a popular choice can fill up.

NPR also reports that a special enrollment period for people whose plans are ending runs through February 28, 2027, and that a January 1 start generally requires a choice by December 31.

How to Apply: How to Enroll in or Switch a Medicare Plan Before December 7

You do not apply for open enrollment as a program. You use it to change coverage that you already have. Follow these steps.

1. Gather your list of prescriptions with doses, your doctors and pharmacies, and your current plan’s annual notice of change.
2. Go to medicare.gov and open the Plan Finder, then enter your ZIP code and your drugs.
3. Compare total yearly cost, not just the premium. Include the deductible, copays or coinsurance, and the out-of-pocket maximum.
4. Check that your doctors and hospital are in the plan’s network. NPR cautions that online directories can be wrong, so confirm with the office.
5. Enroll online, by calling 1-800-MEDICARE, or through the plan or a broker. If you use a broker, ask whether they sell plans from all carriers.
6. Keep proof of what you picked and when. A choice made by December 7 begins January 1.

If you are happy with your plan, you do not need to act, but you should still read the annual notice of change, because terms can shift even when the plan stays.

Processing Time: How Long Until Your New Medicare Plan Is Active?

Enrollment changes made during open enrollment take effect on January 1, 2027, so there is no wait beyond that date. The insurer should send confirmation, and a new member card should arrive before or soon after the plan year starts. If the card does not show up by late December, call the plan and 1-800-MEDICARE. For people using a special enrollment period after December 7, coverage generally starts the first of the month after the request, though your specific timing may vary.

Payment Schedule: How and When You Pay Medicare Premiums

Premiums are not due all at once. If you collect Social Security, your Part B premium, and often your plan premium, can be deducted from your monthly benefit. Others receive a bill. Part D and Medicare Advantage premiums are paid monthly to the plan, unless the plan allows other arrangements.

Scam Warning: Medicare Open Enrollment Brings Fake Callers

Federal officials warn that Medicare representatives will not call you unexpectedly to ask for your Medicare number or financial information. Hang up on anyone who does. Be careful with online agencies that ask for personal details, because some sell data or lead to scams. Report suspected fraud to 1-800-MEDICARE.

Official Medicare Open Enrollment Links and Resources

FAQs About Medicare 2027 Changes

Conclusion

Medicare open enrollment this year rewards people who look. The averages sound calm, with lower Medicare Advantage premiums and only a small rise in stand-alone drug plan premiums. Underneath, plans are leaving, deductibles and caps are rising, a premium subsidy is ending, and some individual plans will cost far more. The Part B premium is also still unconfirmed.

The practical path is simple. Read your annual notice of change, price your real prescriptions in the Plan Finder, confirm your doctors, and decide by December 7. Use the calculator to see how the new Part D rules affect you, and ask SHIP for free help if the choices feel confusing. We’ll keep this guide current as CMS announces the remaining 2027 figures.