Medicare recipients now have the opportunity to explore their coverage options for 2027, even though the official period for making changes won't kick off until October 15 of this year.
The official tool, Medicare Plan Compare, is already equipped to let users select the year 2027 and input their zip code to examine the health and drug plans available in their area.
The Medicare Open Enrollment period will stretch from October 15 to December 7, 2026. Any changes you make during this window will take effect on January 1, 2027.
Important Factors to Consider Before Switching Plans
Before you decide to switch, Medicare advises looking beyond just the monthly premium. Consider the network of doctors and hospitals, the list of covered medications, available pharmacies, deductibles, and copayments. These costs can differ significantly among plans.
Changes Allowed from October 15 to December 7
Existing Medicare participants can make several changes to their coverage during the Open Enrollment period. Options include switching from one Medicare Advantage plan to another, joining or leaving a Medicare Advantage plan, altering their Part D drug plan, or transitioning from Original Medicare to Medicare Advantage.
You can also revert from Medicare Advantage back to Original Medicare. In such cases, securing a separate Part D drug plan might be necessary.
Medicare provides a detailed guide about the available options during this enrollment period.
2027 Plans Are Already Up for Comparison
Starting in early October, Medicare.gov allows users to explore their options for the upcoming year before the official change period begins. By entering your zip code, you can start comparing plans. Those with Medicare accounts can also use saved data about their medications and pharmacies for more precise cost estimates.
This feature proves particularly beneficial as two plans with similar monthly premiums can result in vastly different annual costs, depending on individual prescriptions, regular doctors, and service needs.
What to Look for When Evaluating Plans
The monthly premium is just one element to examine. For a Medicare Advantage plan, it’s wise to check whether your usual doctors, specialists, and hospitals are still in-network for 2027. Some plans may require using their network for non-emergency care or charge extra for services outside the network.
Also, check if the plan requires pre-authorization for certain services, treatments, or medications. Regular medication users should enter all their prescriptions and preferred pharmacies into Plan Compare, as coverage and costs can vary based on the chosen plan.
Projected Average Premium for Medicare Advantage
The Centers for Medicare & Medicaid Services (CMS) project that the average monthly premium for Medicare Advantage plans will be around $12 in 2027.
In 2026, the average was $14.37, representing a projected reduction of about 16.5%. CMS also anticipates that over 99% of Medicare beneficiaries will have access to at least one Medicare Advantage plan in 2027, with around 97% having ten or more options available.
These figures are national averages and estimates. They do not imply that all plans will decrease in price or that each beneficiary will pay $12 monthly. Costs and options depend on your location and each plan's specifics.
Updates on Part D Drug Plans
CMS has released national projections for prescription drug coverage. The average monthly premium for standalone Part D plans is estimated to be about $36 for 2027, up slightly from $35.09 in 2026.
For Medicare Advantage plans that include drug coverage, CMS projects the average Part D premium will drop from $11.32 in 2026 to approximately $7 in 2027. Again, these averages should not replace checking the specific plan available in your zip code.
Increase in Maximum Deductible for Medications in 2027
Those using drug coverage should also note two key changes for the upcoming year. In 2027, the deductible for a Medicare drug plan cannot exceed $700, compared to the maximum of $615 in 2026.
The annual out-of-pocket threshold for medications covered under Part D will rise from $2,100 in 2026 to $2,400 in 2027. Once this limit is reached through qualifying expenses, beneficiaries enter the catastrophic phase and stop paying for covered medications for the remainder of the year.
Medicare provides detailed information on these costs in its official Part D expenses guide.
Check Your Plan’s Annual Notice of Change
Enrolled Medicare members should have received a critical document in the fall: the Annual Notice of Change (ANOC). This document outlines what will change in the following year regarding coverage, costs, and other plan conditions.
Even if you are satisfied with your current coverage, Medicare advises reviewing this notice, as plans can adjust premiums, deductibles, covered medications, provider networks, and other benefits from year to year. If you haven't received the notice, contact your plan provider.
Understanding the Differences: Original Medicare vs. Medicare Advantage
It's crucial to understand what you're comparing. Original Medicare consists of Parts A and B and generally allows visits to any doctor or hospital in the U.S. that accepts Medicare. To get drug coverage, you can add a standalone Part D plan.
Medicare Advantage, or Part C, is offered by private companies approved by Medicare and provides an alternative way to receive coverage under Parts A and B. Most of these plans also include drug coverage.
Medicare Advantage plans may offer additional benefits, such as dental, vision, or hearing services, but they might also use provider networks and require prior authorization for specific services. Hence, a plan with more advertised benefits or a lower premium may not necessarily result in lower overall expenses or better suit your medical needs.
Typically, you don't need to change plans annually if you wish to keep your current coverage, as long as the plan remains available and no action is required due to specific circumstances. However, CMS recommends reviewing your options each year since costs and benefits can change.
How to Compare Medicare Plans for 2027
The official Medicare Plan Compare tool allows you to view the available plans for 2027 using your zip code. For assistance, you can call 1-800-MEDICARE (1-800-633-4227), available 24/7.
Medicare also offers the State Health Insurance Assistance Programs (SHIPs), providing free, impartial guidance on health insurance options for Medicare beneficiaries. With Open Enrollment just around the corner, reviewing your options now ensures you're well-informed by October 15 to decide whether to maintain your current coverage or explore alternatives for 2027.
FAQs about Medicare Plan Comparisons for 2027
When can I start comparing Medicare plans for 2027?
You can begin comparing Medicare plans for 2027 starting in early October 2023 using the Medicare Plan Compare tool.
What changes can be made during the Medicare Open Enrollment period?
During Medicare Open Enrollment, which runs from October 15 to December 7, you can switch Medicare Advantage plans, join or leave a Medicare Advantage plan, change your Part D drug plan, or switch from Original Medicare to Medicare Advantage, and vice versa.
How can I ensure the best Medicare plan for my needs?
To find the best Medicare plan for your needs, consider factors such as the monthly premium, network of doctors, covered medications, deductibles, copayments, and additional benefits like dental or vision care. Using the Medicare Plan Compare tool can also help provide tailored estimates based on your medical and prescription needs.
What should I do if I haven't received my Annual Notice of Change (ANOC)?
If you haven't received your Annual Notice of Change (ANOC), contact your plan provider to request a copy. This document outlines important changes to your coverage for the upcoming year.