Medicare open enrollment begins: what to check before choosing a 2027 plan
The enrollment window opens today and ends December 7. Average premiums tell only part of the story: the maximum Part D deductible and annual out-of-pocket drug spending limit are rising.
Medicare's annual enrollment period opens Thursday, October 15, allowing beneficiaries to review and change their health and prescription drug coverage for 2027. They have until December 7 to submit requests, with changes taking effect January 1. This year's decision requires looking beyond a plan's advertised monthly premium: some national averages are falling, while important prescription spending thresholds are rising.
Depending on their current coverage, beneficiaries can switch between Original Medicare and Medicare Advantage, move to another Advantage plan or change their Part D prescription drug coverage. This is an opportunity for people already in Medicare to review existing choices. Initial enrollment and other special circumstances have their own deadlines.
A lower average premium does not describe the whole bill
The Centers for Medicare & Medicaid Services, or CMS, projects that the weighted average monthly Medicare Advantage premium will fall from $14.37 in 2026 to $12 in 2027, a 16.5% reduction. For stand-alone Part D prescription drug plans, it projects an average monthly premium of $36, compared with $35.09 this year.
These are market averages, not guaranteed rates for individual beneficiaries. Costs depend on the plan and the choices available where a person lives. They also do not represent all spending on care: deductibles, copayments and coinsurance may apply in addition to premiums.
Medicare Advantage members must keep Part B and continue paying its premium. An offer with a zero-dollar additional premium therefore does not automatically eliminate other obligations. A budget needs to distinguish the plan's fixed payment from the cost of using appointments, treatments or medications.
CMS itself recommends comparing coverage each year because costs and benefits change. Its premium projections describe part of that picture; an individual decision requires reviewing the specific terms of a plan's 2027 coverage.
Two new benchmarks for prescription drug spending
The maximum Part D deductible will increase from $615 to $700 in 2027, a difference of $85. Some plans do not have a deductible. The maximum does not mean that every enrollee will have to pay the same amount before coverage starts.
The annual out-of-pocket threshold for covered Part D drugs will also rise, from $2,100 to $2,400. Once the threshold is reached, beneficiaries pay no copayments or coinsurance for those medications for the rest of the calendar year. As Medicare explains, certain payments made on their behalf can also count toward the limit.
The limit provides protection against high costs for drugs included in the coverage. It is not a general cap on all medical care and does not make monthly premiums free. Medicare's official drug-cost information and CMS's 2027 parameters confirm both changes.
Comparing plans requires an accurate list of prescriptions, dosages and the pharmacy normally used. The result can change depending on which medications are covered, the requirements for obtaining them and the pharmacy selected. A national average helps explain the trend; it does not calculate an individual patient's prescription costs.
Check who will still provide your care
The review should include the doctors, hospitals and other providers a beneficiary uses. Advantage plans can have different networks, referral rules and prior authorization requirements. Medicare's official comparison distinguishes between options such as HMOs and PPOs, which do not have identical access rules.
A useful check is to compare the plan directory with the provider's own information and ask about the specific coverage taking effect in January. The insurance company's name alone does not establish all the terms of a particular policy.
Anyone considering a move from Advantage back to Original Medicare should also examine how to cover prescriptions and the costs they will remain responsible for. Medicare warns that a separate drug plan may be needed and that there are limits on adding Medigap supplemental coverage.
The annual enrollment period does not provide a universal right to buy or replace any Medigap policy. Guaranteed-issue situations and state rules can expand the options. Before leaving existing coverage, beneficiaries need to establish which supplemental protection they can obtain and on what terms.
Read the notice of changes before the advertising
Kiplinger emphasizes the importance of the Annual Notice of Change, known as the ANOC, which details changes to coverage for the following year. It should be reviewed alongside the plan's benefits documents and drug list. Together, they help identify what will change from familiar coverage.
The official Medicare Plan Finder allows beneficiaries to compare 2027 options. Help is also available at 1-800-MEDICARE, or 1-800-633-4227, and through State Health Insurance Assistance Programs, known as SHIPs. These are ways to clarify the choices before submitting an application.
The enrollment period also calls for care with personal information. Medicare advises protecting a beneficiary's Medicare number and not signing up through an unexpected call if help was not requested. Reviewing communications and using official channels reduces the risk of handing information to someone trying to sell coverage or commit fraud.
There is time until December 7 to make an informed choice. The most useful comparison is between what the coverage costs and what care it provides. The best offer for a beneficiary depends on their medications, providers and the terms that will actually apply during 2027.
