What Medicare beneficiaries should know about 2027 coverage choices

INDIANA — Medicare’s annual open enrollment period is now underway, giving millions of beneficiaries nationwide a chance to review their current health coverage and select new plans for 2027.

The seven-week enrollment window is the main opportunity each year for seniors and people with disabilities to change Medicare Advantage and prescription drug plans. Any updates made during open enrollment will begin on January 1, 2027.

Health officials are encouraging enrollees to examine their coverage closely, since medical needs and plan details can change from one year to the next. Reviewing options can help people find better benefits, lower costs, or both.

What’s New for 2027: $2,400 Limit on Prescription Drug Costs

One major change for people with Medicare drug coverage is a cap on annual out-of-pocket spending.

According to federal health rules, beneficiaries in covered Medicare prescription drug plans will pay no more than $2,400 out of pocket for covered medications in 2027.

The limit applies only to prescription drugs included in a plan’s covered formulary. Advisers say enrollees should confirm that their specific medicines are still covered when comparing plans.

How to Compare Plans

Experts suggest taking these steps to make the process easier:

• Create or sign in to a Medicare account: Go to Medicare.gov/plan-compare to see personalized plan choices based on your prescriptions and preferred local pharmacies.
• Check total estimated costs: Focus on the “Total Drug & Premium Cost,” not just the lowest monthly premium. A cheaper monthly rate can still end up costing more if copays or deductibles are higher for your medications.
• Read annual notices: Review the Annual Notice of Change (ANOC) from your current provider, which outlines any changes to copays, network coverage, or covered drug lists for 2027.

People who need help sorting through their choices can compare plans online at Medicare.gov or call Medicare support before the deadline passes.