Medicare's annual open enrollment started on October 15 and runs until December 7. Whatever you pick in that window takes effect on January 1, and for most people it is the one chance each year to change their coverage without a special reason.
A lot of people skip it, usually because last year's plan worked fine and the mailers all look alike. I get it, but drug plans and Medicare Advantage plans can change their premiums, deductibles and covered drug lists every year, and 2027 brings a few changes worth knowing about before the window closes.
A quick note before the details: this is general information, not advice about your own situation. Medicare choices depend heavily on your prescriptions, your doctors and where you live.
The Part D cap goes up to $2,400
The biggest headline number is the annual cap on what you pay out of pocket for covered prescription drugs under Part D. It was $2,100 in 2026. For 2027 it rises to $2,400, according to the figures reported by Kiplinger and the Associated Press.
The cap still matters a great deal for people on expensive medications. Before the Inflation Reduction Act introduced it, there was no hard ceiling on Part D spending at all. Once you reach the cap in a year, you pay nothing more for covered drugs for the rest of that year.
The maximum standard deductible for Part D also goes up, from $615 to $700. That is the most a plan can charge before coverage kicks in. Plans can set a lower deductible or none at all, which is one of the things worth comparing.
A premium subsidy is going away
In 2024 Medicare began a temporary demonstration program that helped hold down premiums for stand-alone Part D plans. It is not being extended into 2027. Kiplinger put its effect at about $16 per person in 2026, and the AP reported that it ends earlier than originally planned.
What that means for any one person depends on the plan. Some premiums may go up and some may not move much, so the only way to know is to look at your own plan's notice for next year.
Fifteen drugs get negotiated prices
Starting January 1, Medicare's negotiated prices take effect for a second group of 15 drugs. This is the program created by the Inflation Reduction Act that lets Medicare negotiate directly with drugmakers on some high-cost medications.
The 2027 group includes the diabetes and weight drugs Ozempic, Rybelsus and Wegovy, along with inhalers such as Trelegy Ellipta and Breo Ellipta and the cancer drug Xtandi. The negotiated price is what Medicare and the plan pay, not necessarily what you pay at the counter. Your own cost still depends on your plan's design and whether you have reached the cap. (I mention this because it is the part most news coverage glosses over, and it causes a lot of confusion at the pharmacy.)
How to check your plan in about an hour
If you have a Part D or Medicare Advantage plan, it should have sent you an Annual Notice of Change in the fall. That document lists what is changing for next year: premiums, deductibles, which drugs are covered and which pharmacies are preferred. Start there.
Then use the Plan Finder tool at Medicare.gov. Enter your actual prescriptions and doses, plus the pharmacy you use, and it will estimate your total yearly cost under each plan available where you live. That total is the number to compare, rather than the premium alone. A plan with a low premium and a high deductible can easily cost more over a year than the reverse.
If you are on Medicare Advantage, check that your doctors and hospitals are still in the plan's network for 2027. Networks change, and finding out in February is a much worse experience.
Free help if you want a second opinion
Every state has a State Health Insurance Assistance Program, usually called SHIP, which offers free, unbiased Medicare counseling. They don't sell plans, which is the main reason to call them before calling anyone who does. You can also reach Medicare directly at 1-800-MEDICARE.
Be wary of unsolicited calls during enrollment season from people who say they are "from Medicare" and need your number to update your benefits. Medicare doesn't call people out of the blue to ask for that.
If you miss December 7
Missing the deadline narrows your options without shutting them off completely. If you are in a Medicare Advantage plan, a separate window runs from January 1 to March 31 that lets you switch to another Advantage plan or go back to Original Medicare once. People with Original Medicare who want to change their stand-alone drug plan mostly have to wait for next fall, unless they qualify for a special enrollment period after events like a move.
So it is probably worth an hour before December 7. Even if you end up keeping the plan you have, at least you will know what it is going to cost you next year.
Enjoyed this story?Get a new one every day on social.
