Medicare open enrollment gives you a chance each year to take another look at your coverage and decide whether it still works for you. With so many options to sort through, though, it can be hard to know what deserves your attention and whether you should make a change.
As you review your Medicare 2027 options, it helps to consider both your healthcare needs and how the costs fit into your retirement plan. Here are some of the key dates, changes, and decisions to keep in mind during this year’s open enrollment period.
What You Can Do During Open Enrollment
Let's start by talking about how open enrollment works.
Every year, Medicare main open enrollment is from October 15 to December 7. During this period, you can change your Medicare health plan(s) and prescription drug coverage for the following year.
Keep in mind that open enrollment is not for people who haven't signed up for Medicare yet. If that’s you, the initial enrollment period is determined by your birthday rather than a predetermined day on the calendar.
The open enrollment period affects each Medicare part differently. Here’s what you can do with each part during open enrollment:
- If you are currently enrolled in Medicare Parts A & B, you can switch to Part C.
- If you are currently enrolled in Medicare Part C, you can switch back to original Medicare (parts A and B) or change to a different Medicare Advantage Plan.
- If you are enrolled in Medicare Part D, you can switch to a different Part D plan or drop your prescription drug plan altogether.
- You can enroll for the first time in Part C or Part D.
If you don't make any changes during open enrollment, your current coverage remains the same and rolls over to the following year.
Changes to 2027 Medicare Coverage
Below, I identify some significant changes for Medicare in 2027. Now is the time to compare your plans and prepare to make any necessary adjustments during open enrollment. With significant changes on the horizon, there may be a plan that better fits your needs.
- $2,400 out-of-pocket spending cap for prescriptions. The first major change you need to know about is that Part D (prescription drug coverage) caps out-of-pocket spending on covered drugs at $2,400 per year (up from $2,100 in 2026). This limit applies to prescription coverage in Medicare Advantage plans as well as standalone Part D insurance. For approved medications, the $2,400 cap covers coinsurance, copayments, and deductibles. It doesn’t apply to meds that aren’t covered by a plan or premiums.
- Vaccines and insulin could be more affordable. Adult vaccines recommended by the CDC Advisory Committee on Immunization Practices (ACIP) are permanently covered under Part D with $0 cost-sharing and no deductible for 2027. If you require regular insulin, monthly costs are capped at $35 for a month's supply of each covered Part D (and Part B insulin via durable medical equipment) product, or 25% of the negotiated or Maximum Fair Price (MFP), whichever is lower.
- Part B Premium Projections:
- 2027 Part B Monthly Premium: Projected to rise by ~3.5% ($6.60) from $202.90 in 2026 to $209.50 per month in 2027.
- 2027 Part B Deductible: Projected to increase from $283 in 2026 to $292 in 2027.
- Part D Base Beneficiary Premium:
- 2027 Part D Base Premium: The Centers for Medicare and Medicaid Services (CMS) announced the 2027 Part D base beneficiary premium is $41.33 per month, up ~6% from $38.99 in 2026.
- Context Note: The actual standalone Part D plan premiums vary by private insurer and the end of the federal Premium Stabilization Demonstration after 2026 makes reviewing September Annual Notice of Change (ANOC) notices essential for 2027 enrollees.
- Significant increases to Medicare Advantage costs (Medicare Part C): Medicare Advantage benchmark payment rates from CMS are projected to increase by 2.48% in 2027 (totaling ~$13 billion in additional funding to plans). However, individual plan out-of-pocket costs, copays, and supplemental benefit coverage can still fluctuate year-to-year.
Again, Medicare recipients should closely review their Annual Notice of Change (ANOC) in September to check for potential monthly premium updates and how increases may affect their finances.
Get Ready for Medicare 2027
Medicare choices can affect more than your healthcare coverage. Premiums, prescription costs, and out-of-pocket expenses can all influence your retirement budget, which makes reviewing your Medicare 2027 options an important part of planning for the year ahead.
At Premier Planning Group, we help clients look at Medicare decisions alongside the rest of their financial lives. As a financial advisor, my goal is to help you understand how your choices may affect your retirement plan so you can make decisions based on your needs and priorities.
If you have questions about Medicare 2027 or want to review how healthcare costs fit into your retirement strategy, call our office at (443) 837-2520 or email my executive assistant, Talia Grover, at taliagrover@premierplanninggroup.com to set up a complimentary consultation.
About Brion
Brion Harris is the CEO, founder, and managing partner of Premier Planning Group, an independent financial firm specializing in working with pre-retirees and retirees, helping them create customized wealth preservation and retirement distribution strategies. With over 20 years of experience, Brion has developed deep knowledge and skill in helping his clients simplify their finances and find confidence in their financial future. Brion and the Premier Planning team are known for their unparalleled client service and their dedication building long-lasting relationships with their clients. As a result, Brion has been the recipient of the #1 Advisor Leadership Award* at Summit Brokerage Services for eight years running.
Brion is a proud 20-year resident of the Annapolis community, where he resides with his wife, Elizabeth, their three children, Addison, Jay, and Scarlett, and their two dogs, Pepper and Coco. When he’s not working, you can find him boating, skiing, traveling, and enjoying good food and music with his family. If you want to learn more about Brion, connect with him on LinkedIn.
*The #1 Advisor and Leadership Award is based on production data while at Summit Brokerage Services, Inc. Brion Harris received the award in 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021. This award is not a guarantee of future investment success. This recognition should not be construed as an endorsement of the advisor by any client.