Millions of Americans reviewing their Medicare coverage for 2027 are confronting changes that could affect their healthcare costs, doctors, prescription drugs, and insurance benefits. Some Medicare Advantage insurers are eliminating plans, reducing extra benefits, or increasing out-of-pocket expenses, making this year’s open enrollment period particularly important for seniors.
The changes come despite new projections from the Centers for Medicare & Medicaid Services (CMS) showing that the average monthly Medicare Advantage premium will decline from $14.37 in 2026 to $12 in 2027, a decrease of 16.5%. However, those national averages do not reflect what every enrollee will pay. Individual plans may increase deductibles, copayments, or other expenses even when their monthly premiums remain low.
Several major insurers are scaling back Medicare Advantage offerings in selected markets, potentially forcing some beneficiaries to choose different coverage. Certain plans are also reducing supplemental benefits such as dental care, transportation assistance, and allowances for other healthcare needs. Seniors who remain with their current insurer may discover that familiar doctors, hospitals, or prescription medications are covered differently next year.
Prescription drug costs are changing as well. The annual out-of-pocket spending limit for covered Medicare Part D medications will increase from $2,100 in 2026 to $2,400 in 2027, while the standard deductible rises from $615 to $700. Meanwhile, negotiated prices for additional high-cost medications will take effect in January, potentially reducing costs for some beneficiaries. The financial impact will depend on each person’s medications, insurance plan, and healthcare needs.
Medicare open enrollment runs from October 15 through December 7, 2026, with coverage changes taking effect January 1. Beneficiaries should review their Annual Notice of Change, confirm that their preferred doctors and medications remain covered, and compare total yearly costs rather than focusing only on premiums. The official Medicare Plan Finder at Medicare.gov allows users to compare available plans, while free counseling is available through State Health Insurance Assistance Programs.
