Medicare Open Enrollment begins October 15, 2026, giving millions of Americans an opportunity to review their health and prescription drug coverage for 2027. Beneficiaries have until December 7 to make changes, with new coverage generally taking effect January 1, 2027.
The enrollment window comes as the Centers for Medicare & Medicaid Services (CMS) projects lower average Medicare Advantage premiums for 2027, while average premiums for stand-alone Part D prescription drug plans are expected to rise slightly.
However, an October 2 analysis by health policy research organization KFF found that some people who keep their existing stand-alone drug plans could face monthly premium increases of $50 or more.
The key takeaway: National premium averages do not reveal what an individual beneficiary will pay. Before the December 7 deadline, people with Medicare should review their current plan’s changes, prescription drug costs, preferred pharmacies, provider networks and other coverage options.
When Is Medicare Open Enrollment for 2027?
Medicare’s annual Open Enrollment Period runs from October 15 through December 7, 2026.
According to Medicare.gov, the enrollment period allows people who already have Medicare to make certain changes to their health and prescription drug coverage.
- October 15, 2026: Medicare Open Enrollment begins.
- December 7, 2026: Medicare plans must receive enrollment requests for changes during the annual enrollment period.
- January 1, 2027: Coverage changes generally take effect.
This is different from the Medicare Advantage Open Enrollment Period, which runs from January 1 through March 31 for people already enrolled in Medicare Advantage. It is also separate from the rules for people enrolling in Medicare for the first time.
What’s Changing in Medicare Costs for 2027?
CMS released its 2027 Medicare Advantage and prescription drug coverage outlook on September 28, 2026.
The agency projects that the weighted average monthly Medicare Advantage plan premium will decline from $14.37 in 2026 to $12 in 2027, a decrease of 16.5%.
The projected average monthly premium for stand-alone Medicare Part D plans will rise from $35.09 to $36.
For Medicare Advantage plans that include prescription drug coverage, CMS projects the average monthly Part D premium component, after Medicare Advantage rebates, will decrease from $11.32 to $7.
2026 vs. 2027 Medicare Premium Projections
| Premium category | 2026 average | 2027 projected average |
|---|---|---|
| Medicare Advantage monthly plan premium | $14.37 | $12.00 |
| Stand-alone Medicare Part D monthly premium | $35.09 | $36.00 |
| Part D premium component within Medicare Advantage drug plans | $11.32 | $7.00 |
Source: CMS September 28, 2026 outlook. These are national averages or projections, not individual plan quotes. The Part D component within Medicare Advantage plans is not necessarily an additional amount every enrollee pays.
These figures are also separate from the Medicare Part B premium, which most beneficiaries pay regardless of whether they receive their Part A and Part B benefits through Original Medicare or Medicare Advantage.
A lower plan premium does not necessarily mean lower overall health care spending. Deductibles, copayments, coinsurance, prescription drug expenses and provider networks can affect the total cost of coverage.
KFF Analysis: Some Part D Enrollees Could Face Much Higher Premiums
While CMS projects only a modest increase in the national average stand-alone Part D premium, an October 2 analysis by KFF found that the changes facing individual beneficiaries vary considerably.
According to KFF’s analysis of Medicare Part D plans for 2027, many people may see relatively small premium changes if they keep their current plan, but others could face increases of $50 or more per month.
KFF also found that the average number of stand-alone prescription drug plans available to beneficiaries will decline from 11 in 2026 to nine in 2027, marking the fourth consecutive year of fewer options.
Another significant finding involves plans with no monthly premium.
KFF estimated that approximately 4 million stand-alone Part D enrollees without low-income subsidies paid no monthly premium in 2026. According to its analysis, those beneficiaries will face higher premiums in 2027 whether they remain in their existing plan or select another stand-alone drug plan.
These findings do not mean every Medicare Part D enrollee will experience a large increase. They show why national averages should not replace a comparison of individual plan costs.
Beneficiaries should review their 2027 premium notice and compare available alternatives before deciding to keep or change coverage.
Medicare Part D Deductible and Out-of-Pocket Threshold for 2027
Prescription drug costs are another important part of the 2027 Medicare changes.
In its final 2027 Rate Announcement, CMS established a $700 deductible for the defined standard Part D benefit, up from $615 in 2026.
The $700 figure is also the maximum deductible permitted for Medicare Part D plans in 2027. Some plans may charge a lower deductible or no deductible at all.
The annual Part D out-of-pocket threshold increases from $2,100 in 2026 to $2,400 in 2027.
| Part D benefit parameter | 2026 | 2027 |
|---|---|---|
| Defined standard deductible | $615 | $700 |
| Annual out-of-pocket threshold | $2,100 | $2,400 |
Source: CMS Final 2027 Rate Announcement, Attachment V, Table V-2.
The annual threshold applies to qualifying out-of-pocket costs for covered Part D prescription drugs. Certain payments made on a beneficiary’s behalf, including qualifying assistance through the Extra Help program, may also count toward this threshold.
Once the applicable threshold is reached, beneficiaries generally pay no additional cost-sharing for covered Part D drugs for the remainder of the calendar year.
The $2,400 threshold is not a limit on all Medicare medical expenses. It does not cap hospital bills, doctor visits or every prescription-related expense.
People taking medications regularly should compare estimated annual prescription costs under each available plan rather than relying only on premiums or deductibles.
What Can You Change During Medicare Open Enrollment?
The changes available during Open Enrollment depend on a beneficiary’s existing Medicare coverage.
Eligible beneficiaries can generally:
- Switch from one Medicare Advantage plan to another.
- Move from Original Medicare to a Medicare Advantage plan.
- Leave Medicare Advantage and return to Original Medicare.
- Join, switch or drop a stand-alone Medicare prescription drug plan when permitted under the applicable enrollment rules.
- Change between Medicare Advantage plans with or without prescription drug coverage, subject to plan and enrollment requirements.
People considering a switch from Medicare Advantage to Original Medicare should carefully review their prescription drug coverage needs and potential out-of-pocket medical costs.
Original Medicare generally does not have an annual out-of-pocket maximum for covered Part A and Part B services. Medicare Supplement Insurance, also called Medigap, may help with certain costs.
However, the ability to purchase Medigap coverage can depend on enrollment timing, state rules and guaranteed-issue rights. Returning to Original Medicare does not automatically guarantee eligibility for every Medigap policy.
For further details, see Medicare.gov’s enrollment guidance.
Seven Things to Check Before Choosing Medicare Coverage for 2027
Even beneficiaries who are satisfied with their current coverage should review the available options. Medicare plan benefits and costs can change from one year to the next.
1. Read Your Annual Notice of Change
Medicare plans send an Annual Notice of Change (ANOC) each fall explaining important changes scheduled for the following year.
The notice may describe changes in premiums, deductibles, copayments, covered services and other plan rules.
Reviewing the notice can help beneficiaries identify changes that might affect their health care needs or budgets in 2027.
2. Check Your Prescription Drugs, Dosages and Coverage Restrictions
Make a list of regularly used medications, including each drug’s name, dosage and quantity.
Check whether the medications appear on the plan’s 2027 formulary and whether restrictions such as prior authorization, step therapy or quantity limits apply.
A plan that covered a medication in 2026 may have different coverage rules or cost-sharing requirements in 2027.
3. Compare Estimated Total Annual Costs
Monthly premiums are only one part of the cost of Medicare coverage.
Compare deductibles, doctor visit copayments, specialist expenses, hospital cost-sharing and estimated annual prescription drug costs.
Medicare’s official Plan Compare tool can help estimate certain costs based on a beneficiary’s medications, preferred pharmacies and available plan choices.
These estimates are useful for comparison but are not guaranteed bills.
4. Check Whether Your Pharmacy Is Preferred
A pharmacy may be included in a Medicare drug plan’s network without being classified as a preferred in-network pharmacy.
According to Medicare.gov’s pharmacy guidance, preferred in-network pharmacies may offer lower out-of-pocket prescription drug costs than other pharmacies in the same plan’s network.
For example, a beneficiary may pay different copayments or coinsurance for the same covered medication depending on which participating pharmacy fills the prescription.
Those differences depend on the plan, medication and pharmacy arrangement.
Beneficiaries should check their preferred local pharmacy and compare other participating pharmacies. Some plans also offer mail-order options that may be convenient or cost-effective for regularly used medications.
5. Confirm Doctors, Hospitals and Coverage Rules
Medicare Advantage plans may use provider networks, and those networks can change.
Check whether important doctors, specialists and hospitals participate in a plan’s 2027 network.
Beneficiaries should also review referrals, prior authorization requirements and other coverage restrictions for services they expect to use.
When access to a particular provider is important, confirming participation directly with the provider and plan can help avoid unexpected problems.
6. Review Additional Benefits and Medical Spending Limits
Some Medicare Advantage plans offer additional benefits such as dental, vision and hearing coverage.
However, benefit limits, participating providers, eligibility conditions and cost-sharing rules may differ.
Beneficiaries should review the plan’s actual benefit documents instead of relying on advertisements alone.
A Medicare Advantage plan with a $0 monthly plan premium does not mean that all health care services are free. Applicable cost-sharing and other Medicare premiums may still apply.
7. Review Employer or Union Retiree Coverage Before Switching
Beneficiaries who receive health or prescription drug coverage through a former employer or union should take an additional precaution before changing Medicare plans.
Joining or changing Medicare drug coverage can affect existing retiree benefits. Depending on the employer or union plan’s rules, a change could lead to the loss of certain drug benefits or other health coverage for the beneficiary or eligible family members.
Medicare advises people with retiree coverage to contact their benefits administrator and review their plan documents before making changes.
They should also confirm whether their existing prescription drug coverage is considered creditable coverage, which can affect Medicare Part D late enrollment penalties.
Beneficiaries should not cancel employer- or union-sponsored retiree coverage without understanding how that decision could affect their benefits.
More information is available through Medicare.gov’s retiree insurance guidance.
What Happens If You Keep Your Current Medicare Plan?
In many cases, beneficiaries whose existing Medicare Advantage or Part D plans continue into 2027 can remain enrolled without selecting a new plan.
However, staying enrolled does not necessarily mean keeping the same costs or benefits.
A plan may change its premium, deductible, prescription drug formulary, provider network or other coverage conditions.
Some plans may also discontinue coverage in certain locations or stop operating.
Beneficiaries whose plans are ending should review notices from their insurer and Medicare because additional enrollment rights or different deadlines may apply.
Even when coverage renews automatically, comparing available plans can help beneficiaries assess whether their current coverage remains suitable.
How to Compare Medicare Plans for 2027
The federal government provides an official tool for comparing Medicare health and prescription drug plans.
- Visit the Medicare Plan Compare tool.
- Enter your ZIP code to review coverage options available in your area.
- Include regularly used prescription medications and preferred pharmacies when prompted.
- Compare premiums, deductibles, drug costs and other estimated annual expenses.
- Review provider networks, covered benefits and restrictions.
- Confirm the selected plan’s details and enrollment requirements before submitting a request.
Plan availability depends on location. CMS projects that more than 99% of Medicare beneficiaries will have access to at least one Medicare Advantage plan in 2027, while 97% will have access to 10 or more Medicare Advantage options.
These national figures do not mean every beneficiary will have the same number of choices.
People who need assistance can call 1-800-MEDICARE (1-800-633-4227). TTY users can call 1-877-486-2048.
Free, personalized Medicare counseling is also available through the State Health Insurance Assistance Program (SHIP).
Frequently Asked Questions About Medicare Open Enrollment 2027
When does Medicare Open Enrollment start in 2026?
Medicare Open Enrollment begins October 15, 2026, and ends December 7, 2026. Changes generally take effect January 1, 2027.
Will Medicare Advantage premiums decrease in 2027?
CMS projects the national weighted average monthly Medicare Advantage plan premium will decrease from $14.37 in 2026 to $12 in 2027. However, individual premiums and total health care costs may increase or decrease depending on the plan.
Could Medicare Part D premiums rise by $50 or more?
Yes. KFF’s October 2 analysis found that some enrollees in existing stand-alone Part D plans could face monthly premium increases of $50 or more in 2027 if they keep their current coverage. The findings do not apply to every Part D enrollee.
What is the Medicare Part D deductible for 2027?
The defined-standard Part D deductible is $700 for 2027, which is also the maximum permitted deductible for Part D plans. Some plans may have lower deductibles or no deductible.
What is the Medicare Part D out-of-pocket threshold for 2027?
The annual out-of-pocket threshold for covered Part D prescription drugs is $2,400 in 2027, up from $2,100 in 2026. The threshold does not apply to every Medicare medical expense.
Do I have to switch Medicare plans every year?
No. Many beneficiaries can keep their current plan if it continues into the next year. However, reviewing annual plan changes and comparing available options can help identify differences in costs or coverage.
Can switching Medicare plans affect employer or union retiree benefits?
Yes. Depending on the retiree plan’s rules, joining or changing Medicare coverage may affect employer- or union-sponsored benefits. Contact the benefits administrator before making changes.
Where can I get help comparing Medicare plans?
Beneficiaries can compare coverage at Medicare.gov, call 1-800-MEDICARE or contact their State Health Insurance Assistance Program for free counseling.
The Bottom Line
Medicare Open Enrollment for 2027 runs from October 15 through December 7, 2026.
CMS projects lower average Medicare Advantage premiums and a modest increase in average stand-alone Part D premiums. But KFF’s analysis shows that individual drug plan enrollees may experience substantially different premium changes, including increases of $50 or more per month for some people who keep their existing plans.
At the same time, the defined-standard Part D deductible rises to $700, and the annual Part D out-of-pocket threshold increases to $2,400.
Before making an enrollment decision, review the Annual Notice of Change, compare estimated total costs, check prescriptions and preferred pharmacies, confirm provider networks and consider how a switch could affect any employer or union retiree coverage.
For official information and available 2027 coverage options, visit Medicare.gov or call 1-800-MEDICARE.
