Medicare Changes for 2027: What Beneficiaries Need to Know

Medicare Annual Enrollment for 2027 coverage runs October 15 through December 7, 2026. With costs changing, some Medicare Advantage plans leaving certain areas, and benefits shifting, reviewing your coverage may be especially important this year.

The good news? You don't need to become a Medicare expert. Here's what we know about the changes coming in 2027, what they could mean for your coverage and what to look for when reviewing your options this fall.

Medicare costs are expected to increase

Some Medicare costs are expected to be a little higher in 2027.

According to the 2026 Medicare Trustees Report, the standard Medicare Part B premium is projected to increase to $209.50 per month, up from $202.90 in 2026. The annual Part B deductible is projected to increase from $283 to about $292.

CMS will announce the official 2027 Part B amounts later this year, so these figures could still change.

We already know several important numbers for Medicare Part D prescription drug coverage in 2027:

• Out-of-pocket limit: $2,400, up from $2,100 in 2026
• Standard deductible: $700, up from $615
• Base beneficiary premium: $41.33. This is a number Medicare uses to calculate plan premiums and late enrollment penalties (LEP) — it is not necessarily the amount you'll pay each month.

People with stand-alone Part D prescription drug plans may also see changes to their monthly premiums. A temporary federal program designed to help stabilize premiums for these plans ends after 2026. CMS Administrator Mehmet Oz has said most beneficiaries are expected to see monthly premium increases of less than $10 as a result, although actual 2027 plan premiums will vary. If your drug coverage is included in a Medicare Advantage plan, this particular change does not apply to you.

Higher-income beneficiaries may pay more

If your income is above certain limits, you may pay an additional amount for Medicare Part B and Part D known as an Income-Related Monthly Adjustment Amount, or IRMAA.

Your 2027 IRMAA is generally based on income reported on your 2025 federal tax return. The official 2027 income brackets will be announced later this year.

If your income has since dropped because of certain life-changing events — such as retiring or reducing your work hours, getting divorced, losing a spouse or losing certain pension income — you may be able to ask Social Security to use more recent income information. You can do this using Form SSA-44.

Some important Medicare protections continue in 2027

While some costs are increasing, several protections designed to help limit prescription drug expenses will continue.

• Prescription drug costs remain capped. In 2027, you'll pay no more than $2,400 out of pocket for covered Part D drugs. Once you reach that amount, you won't pay anything for covered Part D drugs for the rest of the year.
• Insulin remains capped at $35 for a month's supply of each covered insulin product, with no deductible.
• Recommended adult vaccines remain covered at no cost under Part D, including vaccines for shingles and RSV.
• The Medicare Prescription Payment Plan continues. This optional program allows you to spread your out-of-pocket prescription drug costs throughout the year instead of paying larger amounts at the pharmacy all at once.
• Extra Help continues to provide assistance with Part D premiums and other prescription drug costs for people who qualify based on income and resources.

More prescription drugs will have Medicare-negotiated prices

Another change takes effect January 1, 2027: 15 additional prescription drugs will have prices negotiated by Medicare, joining the first 10 drugs with negotiated prices that took effect in 2026.

The 2027 list includes medications such as Ozempic, Rybelsus and Wegovy, along with drugs used to treat cancer, asthma and other conditions.

Keep in mind that a lower negotiated price doesn't necessarily mean every person will have a lower copay. What you pay will still depend in part on your specific Medicare drug plan and how it covers your medications.

That's another reason to check your plan's formulary — its list of covered medications — before deciding whether to keep your coverage for 2027.

Some Medicare Advantage plans are changing or leaving certain areas

For the third year in a row, some Medicare Advantage insurers are reducing the number of plans or areas they serve.

Humana, for example, has announced plan exits that will affect roughly 600,000 members in 2027. Other insurers are also making changes as rising medical and prescription drug costs, along with changes in how Medicare Advantage plans are paid, put pressure on plan costs.

What matters most isn't what's happening nationally — it's what's happening with your plan where you live.

And even if your Medicare Advantage plan isn't going away, don't assume it will stay the same.

For 2027, you could see changes such as:

• Reduced dental, vision or hearing benefits
• A reduced or eliminated over-the-counter benefit
• Changes to your provider network
• Prescriptions moved to a different drug tier or removed from the plan's formulary
• Higher copays or out-of-pocket limits
• Changes to additional benefits, such as grocery or other supplemental benefits

The important takeaway: Don't automatically renew your Medicare coverage without checking what's changing for 2027.

Watch for an important notice from your Medicare plan

Your current Medicare plan will send you information this fall explaining what will happen to your coverage in 2027. Don't toss it aside — it may be one of the most important pieces of Medicare mail you receive all year.

If your plan is continuing in 2027

Look for your Annual Notice of Change (ANOC). It explains what's changing with your plan for the coming year, including things like:

• Monthly premiums
• Deductibles and copays
• Prescription drug coverage
• Provider networks
• Dental, vision and other benefits
• Out-of-pocket limits

Even if you've been happy with your plan, review this notice carefully. A plan that worked well for you in 2026 may not be the best fit in 2027.

If your plan is no longer available where you live

You'll receive a notice explaining that your coverage will not continue in 2027 and outlining your options and deadlines.

This doesn't mean you're losing Medicare. Your Medicare Part A and Part B coverage isn't going away. It means you'll need to decide how you want to receive your Medicare coverage in 2027.

If your Medicare Advantage plan is not renewed and you don't choose another Medicare Advantage plan before your current coverage ends, you'll generally return to Original Medicare. You may also have a Special Enrollment Period and certain rights to purchase a Medicare Supplement (Medigap) policy.

Pay close attention to the dates and instructions in the notice you receive, since your options and deadlines can depend on your situation.

What to do before December 7

You don't need to become a Medicare expert. You just need to know what's changing in your coverage.

Here are five things to do before Medicare Annual Enrollment ends:

1. Find your plan notice. Review the Annual Notice of Change or other notice you receive from your current plan.
2. Make a list of what matters to you. Include your prescriptions, doctors, preferred pharmacies and the benefits you use most.
3. Don't compare premiums alone. Look at deductibles, copays, prescription coverage, provider networks, benefits and out-of-pocket limits, too.
4. Review your options before December 7. Even if you're happy with your current coverage, make sure it still fits your health needs and budget for 2027.
5. Get help if you want it. A Silvur Insurance licensed insurance advisor can help you understand what's changing, compare available options and determine whether your current coverage still fits your needs.