If you have Medicare and want to avoid surprises in your medical costs next year, don’t let open enrollment pass without reviewing your coverage. From October 15 to December 7, 2026 you can compare plans for 2027, just as changes to drug costs will take effect and some insurers will modify their benefits.
The difference can be felt in your monthly budget. A plan that works well for you this year could change its deductibles, the medications it covers, or the doctors available in its network.
When does Medicare Open Enrollment end in 2026?
The window closes on December 7, 2026. According to Medicare.gov, you can switch from Original Medicare to Medicare Advantage, choose another Advantage plan, or modify your Part D prescription drug coverage.
The changes approved during this period will take effect on January 1, 2027.
You don’t have to change plans by obligation. However, it’s advisable to review the annual notice of changes sent by your insurer. There you can find cost increases, changes in benefits, or changes to the doctor network.
Medications will have a new out-of-pocket spending limit
One of the most significant changes affects Medicare Part D, which covers prescription drugs.
According to the Associated Press, the annual out-of-pocket cap for covered medications will rise to $2,400 in 2027, up from $2,100 in 2026. The standard deductible will also increase from $615 to $700.
That doesn’t mean everyone will pay those amounts. The actual out-of-pocket spending will depend on the drugs you use, the plan you have, and the coverage rules that apply.
Additionally, the temporary federal subsidy that helped keep premiums down for certain drug plans will end. While the Centers for Medicare and Medicaid Services (CMS) project modest increases for much of the market, some people may notice differences in their monthly bill.
Medicare will negotiate prices for 15 drugs in 2027
There is a development that could help reduce costs. Starting January 1, 2027, negotiated prices will take effect for 15 drugs, including Ozempic, Rybelsus, and Wegovy, as well as treatments for a variety of chronic diseases.
CMS estimates that the new prices will cut Medicare-covered drug spending by about $685 million in 2027.
But there’s an important caveat: the program’s total savings do not translate into a guaranteed amount for every beneficiary. Your potential savings will depend on the medication you use and the terms of your coverage.
Will Medicare Advantage be cheaper in 2027?
CMS projects that the weighted average monthly premium for Medicare Advantage will fall from $14.37 in 2026 to $12 in 2027. For standalone Part D drug plans, on the other hand, the average premium would rise from $35.09 to $36 per month.
These figures are national averages and not guaranteed prices for everyone. Some insurers are pulling plans from certain markets or reducing additional benefits, such as dental coverage. That is the takeaway from Associated Press when analyzing the changes planned for next year.
That’s why you shouldn’t choose solely based on the monthly premium. Also check how much you’ll pay for visits, hospitalizations, and medications, and whether your doctors will remain in-network.
How to compare your coverage before December
Go to the official Medicare plan finder and compare the available options in your ZIP code. Before confirming a change, review these points:
If your income is limited, you can also look into Medicare savings programs, which can help cover premiums and other costs for those who qualify.
You have until December 7 to make a decision, but you don’t need to wait until the last day. Reviewing your coverage now can help you start 2027 with less uncertainty and, above all, with a plan that fits your real needs.
