2027 Medicare Open Enrollment: Review and Update Your Plan

By Brett Gottlieb

Your Medicare plan may have worked well for you this year, but that doesn’t necessarily mean it’s still the best fit for the year ahead or for your broader financial plan. Your prescriptions may have changed, your preferred doctors may be different, or your plan may have updated its costs and coverage.

That’s why Medicare open enrollment is worth your attention each year. It gives you an opportunity to review what you have, compare your options, and consider how any changes could affect both your healthcare and your retirement expenses. Here’s what to know as you review your coverage.

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.

1. $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.
2. 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.
3. Part B Premium Projections:
   1. 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. 
   2. 2027 Part B Deductible: Projected to increase from $283 in 2026 to $292 in 2027.
4. Part D Base Beneficiary Premium:
   1. 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.
   2. 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. 
5. 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 Open Enrollment

Medicare decisions can affect both your healthcare and your retirement budget, which is why Medicare open enrollment is a good time to take a fresh look at your coverage. Changes to premiums, prescription costs, provider networks, or your own healthcare needs can all influence whether your current plan still makes sense.

At Comprehensive Advisor, we help clients review their Medicare choices alongside the rest of their retirement plan. As a financial advisor and insurance professional, my role is to help you understand the financial side of those decisions and consider how your coverage fits with your income, expenses, and priorities for retirement.

Do you have questions about Medicare open enrollment or want to review how healthcare costs fit into your retirement strategy? We invite you to email us at [email protected] or call (760) 813-2125 to start the conversation.

About Our Advisors

With nearly two decades of industry experience, Brett Gottlieb, and the team at Comprehensive Advisor provide personalized retirement planning and investment services. They help clients sift through the sea of investment options and make sense of what strategies are appropriate for your unique needs. Our advisors customize financial strategies centered around “The Retirement Defense” process, a unique way we build your written plan that is designed to help get you to and through retirement by focusing on the key areas of your financial life. Our investment philosophy serves as a road map for helping you navigate the complexities of the financial landscape. By prioritizing capital preservation, emotional resilience, and personalized strategies, we help empower you to confidently pursue your financial goals and adapt to life’s changes.

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This article is meant to be general and is not investment or financial advice or a recommendation of any kind.

Availability of benefits and plans varies by carrier and location. Deductibles, copays, and coinsurance may apply. Plans purchased after the Initial Enrollment Period are subject to eligibility requirements. By contacting us, you will be connected with a licensed insurance agent. We do not offer every plan available in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options. We are not affiliated with Medicare or any other government agency. Medicare services provided through C.A. Financial & Insurance Services. Any and all other services related to insurance are an outside business activity and are not offered through or supervised by AE Wealth Management, LLC.