Dear Savvy Senior,
I’m on Medicare. What changes are coming in 2027, and how can I make sure I’m not paying too much for my coverage?
Careful Shopper
Dear Careful,
If you have Medicare, this is a good time to make sure you’re getting the most value for your money. Open enrollment gives you a chance to switch Medicare Advantage or prescription drug plans for 2027. Because costs, drug coverage and extra benefits can change from one year to the next, comparing plans now could save you money and prevent surprises later.
Even if you like your current plan, don’t assume next year’s coverage will stay the same. Here’s what to watch.
Prescription drug changes
Medicare Part D prescription drug plans are changing, and some enrollees could end up paying more. In 2027, the maximum annual deductible will rise, and the yearly out-of-pocket limit for covered Part D medications will also increase.
That cap is meant to protect people who rely on costly medications. Average premiums for stand-alone Part D plans are expected to rise only slightly, but individual plans can vary a great deal. A temporary federal program that helped keep premiums stable is also ending, which makes it even more important to compare options.
Your insurer may also revise its list of covered drugs, known as a formulary, or move a medication to a more expensive tier. Check that your prescriptions are still covered and what they will cost.
Medicare Advantage changes
If you have Medicare Advantage, the private-insurance alternative to Original Medicare, review your plan closely. Some insurers are dropping plans or leaving certain markets, while others may change costs or reduce extra benefits such as dental, vision and hearing coverage.
Doctor, specialist and hospital networks can also shift. If your plan is being discontinued, you will need to find new coverage. Even if it remains available, compare next year’s costs, benefits and provider networks before automatically renewing.
Help with weight-loss drugs
A new Medicare GLP-1 Bridge program offers eligible beneficiaries certain weight-management medications for $50 a month through the end of 2027. Covered drugs include Wegovy, Zepbound (KwikPen only) and Foundayo.
Eligibility is limited. In general, you must have Medicare drug coverage and meet specific body mass index and health requirements. The program runs separately from regular Part D coverage, so the $50 monthly payment does not count toward your Part D deductible or annual out-of-pocket limit.
Learn more and check eligibility at Medicare.gov/coverage/weight-loss-drugs.
How to shop smart
Here are four ways to find coverage that fits your needs without overpaying.
Read your plan notice: Your insurer should send an Annual Notice of Change that explains next year’s premiums, deductibles, copayments and coverage changes. Medicare Advantage members should also review provider networks and extra benefits.
Compare total costs: Visit Medicare.gov/plan-compare. Enter your medications and preferred pharmacies to compare plans and estimate annual costs. Don’t focus only on premiums; include deductibles and prescription costs too.
Check your doctors: If you’re considering Medicare Advantage, contact your doctors and hospitals directly to confirm they will accept the specific plan. Online directories can be outdated.
Get free help: Your State Health Insurance Assistance Program provides free, unbiased Medicare counseling. Find a local counselor at ShipHelp.org or call 877-839-2675.
One important caution: If you’re thinking about switching from Medicare Advantage to Original Medicare, check your Medigap options first. In most states, insurers can deny Medigap coverage or charge higher premiums based on health history unless you qualify for guaranteed-issue protections. Make sure you understand your options before dropping your current plan.
Take time to compare plans before open enrollment ends. A little homework now could save you money and help you begin next year with better coverage.
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