As you look ahead to Medicare’s annual open enrollment (Oct. 15 to Dec. 7) and the coming coverage year, you should take note of several anticipated changes that may impact your costs and coverage options.
1. Part D Costs Increase
Prescription drug coverage retained through Part D is expected to become more expensive in the coming coverage year. Enrollees pay a monthly premium for this component of Medicare and contribute out of pocket for their medications until they reach an annual spending cap.
In 2027, the Centers for Medicare & Medicaid Services (CMS) anticipates that Part D’s premium will increase approximately 6% to $41.33 per month. Additionally, the spending limit is expected to increase from $2,100 in 2026 to $2,400 in 2027, representing a 14% increase in potential out-of-pocket costs throughout the coverage year. Furthermore, the Part D standard deductible is forecasted to increase nearly 14% from $615 to $700 year over year.
The CMS has also announced that it will end a subsidy program at the end of 2026 that had paid insurance carriers to limit premiums during Part D’s redesign under the Inflation Reduction Act.
2. Part B Premiums on the Rise
Medicare Part B, which covers doctor visits, preventive services, outpatient care and durable medical equipment, will also cost more in 2027. The Medicare Board of Trustees estimates that monthly premiums will reach $209.50, an increase of over 3% year over year. Part B’s deductible, or the amount paid out of pocket before Medicare begins to pay for covered services, is expected to rise over 3% to $292.
3. Insurers Dropping Part C
In 2027, getting coverage through Medicare Part C, also known as Medicare Advantage plans, may become more difficult. These arrangements, overseen by private insurers approved by Medicare, can combine coverage from Parts A, B and C, often including additional benefits, such as those for dental, vision and hearing care.
However, some insurers have announced that they plan to reduce coverage in 2027. For example, Humana recently announced that it would not renew Medicare Advantage plans for approximately 600,000 people in the coming year. If you enroll in Medicare Part C, you should take extra care to ensure that your plan will continue to offer the benefits you need and include your preferred providers.
Preparing for Open Enrollment
Whether you enroll in Original Medicare or a Medicare Advantage Plan, changes are coming. Part C and D enrollees should expect to receive their Annual Notice of Change by mail before the end of September. This document explains how your plan’s costs and coverage details will change in the coming year.
Before this year’s open enrollment period, reach out to the knowledgeable and experienced team at Hodge, Hart & Schleifer. Our agents can help you understand how these changes may affect you and, if necessary, help you explore alternative coverage options for your 2027 healthcare needs.
The content of this News Brief is of general interest and is not intended to apply to specific circumstances. It should not be regarded as legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. © 2026 Zywave, Inc. All rights reserved.