How to Review Medicare Choices and Cut Costs for 2027

Open enrollment continues through Dec. 7, giving Medicare beneficiaries a chance to change Medicare Advantage or prescription drug plans for 2027. Because prices, drug coverage and extra benefits can shift from one year to the next, reviewing your options now may help you avoid higher costs later.

Even if you like your current plan, don’t assume next year will look the same. Here are the main things to check.

Prescription drug changes

Medicare Part D drug plans are changing, and some people could end up paying more. In 2027, the maximum yearly deductible will increase from $615 to $700, and the annual out-of-pocket cap for covered Part D medicines will rise from $2,100 to $2,400.

That cap offers important protection for people who rely on costly medications. Average premiums for stand-alone Part D plans are expected to rise by less than $1 a month, though individual plans may vary widely. A temporary federal program that helped keep premiums steady is also ending, which makes it especially important to compare plans carefully.

Your insurer may also revise its formulary, the list of covered drugs, or move a medication to a more expensive tier. Make sure your prescriptions are still covered and that you understand what they will cost.

Medicare Advantage changes

If you’re enrolled in Medicare Advantage, the private alternative to Original Medicare, take a close look at your plan. Some insurers are dropping plans or withdrawing from certain markets, while others may raise costs or reduce extra benefits such as dental, vision and hearing coverage.

Provider networks can also change. Doctors, specialists and hospitals may no longer be included. If your plan is being discontinued, you will need to pick new coverage. Even if it stays in place, compare costs, benefits and networks before you renew automatically.

Help with weight-loss drugs

A new Medicare GLP-1 Bridge program lets eligible beneficiaries get certain weight-management medications for $50 a month through Dec. 31, 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 criteria. The program runs separately from standard Part D coverage, so the $50 monthly payment does not count toward your Part D deductible or your annual out-of-pocket limit.

For more information and eligibility details, visit Medicare.gov/coverage/weight-loss-drugs.

How to shop smart

These four steps can help you find coverage that fits your needs without paying more than necessary.

Read your plan notice: Your insurer should send an Annual Notice of Change explaining next year’s premiums, deductibles, copayments and coverage updates. If you have Medicare Advantage, review provider networks and extra benefits as well.

Compare total costs: Go to Medicare.gov/plan-compare and enter your medications and preferred pharmacies to estimate plan costs. Don’t focus only on premiums; include deductibles and prescription expenses too.

Check your doctors: If you are considering Medicare Advantage, contact your doctors and hospitals directly to confirm they will accept the specific plan in 2027. Online directories may not always be current.

Get free help: Your State Health Insurance Assistance Program, or SHIP, offers free, unbiased Medicare counseling. Find a local counselor at ShipHelp.org or call 877-839-2675.

One important caution: If you are thinking about switching from Medicare Advantage to Original Medicare, check your Medigap options first. In most states, insurers can deny Medigap coverage or charge more based on your health history if you do not qualify for guaranteed-issue protections. Be sure you understand your options before leaving your current plan.

Take the time to compare plans before Dec. 7. A little preparation now could save money and help you begin 2027 with better coverage.