2027 Medicare Changes Seniors Should Know About

Every year, Medicare changes. Some years, the changes are minimal, and other times they are substantial. Some updates affect nearly every person enrolled, while others impact only certain plans or people with specific healthcare needs. Either way, these changes can affect your healthcare coverage, costs and plan options. Understanding what's new before the Annual Enrollment Period (AEP) can help you avoid surprises and make more informed Medicare coverage decisions for the coming year.

In this guide, we'll break down the most important Medicare changes for 2027, explain what they could mean for you, and highlight what to review before the Annual Enrollment Period begins.

What's New with Medicare in 2027?

This year's updates include changes to Medicare costs, prescription drug coverage, Medicare Advantage plans, and other program rules. Here's what beneficiaries should know before reviewing their coverage.

Medicare Costs Are Changing

Most Medicare costs are adjusted annually, so even if your coverage stays the same, what you pay may not.

Part A Deductible: Awaiting official CMS numbers*

Part B Premium: Awaiting official CMS numbers*

Part B Deductible: Awaiting official CMS numbers*

Part D Deductible: $700 (up from $615 in 2026)

Part D Out-of-pocket Limits: $2,400 (up from $2,100 in 2026)

*2027 Part A and Part B premiums and deductibles are currently pending official CMS release (expected late Fall 2026). Check back here for updates as soon as the numbers are published.

Prescription Drug Coverage Continues to Evolve

In 2027, Medicare Part D will have an increase to the annual out-of-pocket spending cap, which could slightly raise overall costs for those taking higher-tier medications. To help balance this, the program is continuing to expand its direct price negotiations with manufacturers to bring down the cost of more expensive prescription drugs. Enrollees will also still have the option to use the Medicare Prescription Payment Plan (M3P), which allows them to spread their pharmacy expenses into manageable monthly installments rather than paying a lump sum upfront at the pharmacy counter.

Find out more about Medicare Part D Changes for 2027

What Else Could Change Based on Your Coverage:

Whether you're enrolled in Original Medicare, a Medicare Advantage plan, or a standalone Part D prescription drug plan, understanding what's changing can help you prepare and know if you should consider making coverage changes before the Annual Enrollment Period (AEP) is over. Even if you're happy with your current Medicare plan, reviewing the latest Medicare updates gives you the opportunity to confirm your plan still meets your healthcare needs and budget for the coming year.

Other areas to review include:

• Premium changes
• Formulary changes
• Pharmacy network changes

Medicare Advantage Plans May Look Different

Medicare Advantage Plans (MA/MAPD) are on an annual contract, meaning they can change every year. It does not mean that your plan will for sure change, but changes can occur in every way from:

• monthly plan premiums
• provider networks
• supplemental benefits
• copays
• service areas

Even if you liked your plan in 2026, it's worth reviewing the 2027 Annual Notice of Change (ANOC) documents you'll receive from the insurance company you have your plan through to understand what's changing before your coverage renews. These documents have to arrive to you by October 1.

What Minnesota Beneficiaries Should Watch

Medicare Advantage Coverage

Medicare Advantage plans may be changing their coverage structure, including extra benefit offerings such as OTC allowances, transportation or grocery benefits. This varies from plan to plan, so be sure to review your ANOC (Annual Notice of Change) booklet and talk to one of our Medicare agents to learn more about how your specific plan could be changing. Once you receive your ANOC document, we are allowed to talk to you about these changes.

Be aware that instead of an ANOC booklet, you may receive a termination letter in early October. If your plan is ending, you'll need to enroll in a new plan by December 31st to ensure you have coverage at the beginning of the new year. If your plan is being terminated, you may also have additional time with a special enrollment allowing you to find a new plan in January or February. Still, it is best to sign up before the end of the year to avoid a lapse in coverage.

Provider Networks Will Vary

Some bigger changes are expected when it comes to provider networks. For example, some large insurance carriers that offer Medicare Advantage plans may no longer have the certain clinic system in-network for the following year. We have seen many threats to these networks over the last few years. In many cases, negotiations are made, and clinics ultimately remain in-network, but that is not always the case. Sometimes, your network status can be uncertain until the last minute of the AEP season. Twin City Underwriters licensed Medicare agents can help you prepare for this and navigate these changes with confidence and ease.

Prescription Drug Plans Differ

Prescription drug plans are also on annual contracts which means they can change year to year. Changes often involve premium costs, copay and coinsurance amounts and deductibles; not only that, but prescription coverage involves tier changes, and even the list of medications that drug plan will help pay for, called a formulary change. Individual drug plan changes are sent to you in early November, by your current insurance carrier. However, they do not know what drugs you haven't yet started taking so this isn't always the complete guidance you may need. None the less, reviewing any notices you receive from the insurance carrier you have your prescription drug coverage with is key to ensuring the plan is still suitable for your needs in the following calendar year.

Medicare Supplement Changes

Medicare Supplement plans or Medigap policies are guaranteed renewable, which means the benefits provided stays the same year after year, although premiums and deductibles can change. Therefore, these are often plans that Medicare beneficiaries enroll in and stay enrolled in. If the monthly cost has increased the past few years and will again, and that starts to affect how you live, you may want to consider alternative plan options. Schedule a time to visit with a Twin City Underwriters licensed Medicare Agent.

If you never got a chance to enroll in a Medicare Supplement and feel like you want to, this may be your year.

Annual Enrollment Is the Time to Review These Changes

Once you've reviewed what's changing for 2027, the next step is determining whether those changes affect your own healthcare needs.

Understanding the Medicare changes outlined above is important, but the next step is to determine how those changes may affect your own coverage. Annual Enrollment Period (AEP) is the time each year when eligible Medicare beneficiaries can review their Medicare Advantage and prescription drug plans and make changes for the upcoming year.

AEP runs from October 15 through December 7, with any changes taking effect on January 1. Before this period begins, take time to review your Annual Notice of Change (ANOC) and look for updates to your plan's costs, benefits, provider network, and prescription drug coverage.

Learn More About How to Prepare for the Medicare Annual Enrollment Period (AEP)

Even if you are relatively happy with your current Medicare plan, an annual review can help confirm that your coverage still fits your healthcare needs and budget. As we've looked at, things like changes to Medicare rules, plan benefits, medication coverage, or your personal healthcare situation could impact whether your current plan remains the right choice for 2027.

Our team of trusted Medicare insurance agents can help you understand coverage changes for the upcoming year, compare available plan options, and determine whether making a switch makes sense for your situation.

At Twin City Underwriters, we offer group ANOC (Annual Notice of Change) sessions, which is a unique benefit most agencies don't provide, where you can learn about upcoming changes in a casual setting without needing an individual appointment and you can hear others' really great questions. If you learn your doctors are leaving the network, your prescription costs are rising, or you simply have a few  questions, we also offer 30-minute phone checkins and detailed 60-minute consultation options.

Not sure which is right for you?  Contact our customer service team, and we’ll help you determine the best type of review for your situation.

How to Change Your Medicare Plan During the Annual Election Period

The Biggest Medicare Change Might Be Your Own Healthcare

A lot of times, the biggest focus is all about what's changing with Medicare. But sometimes the biggest change isn't Medicare itself. It's you.

Maybe you:

• started a new medication
• had a change in health that will still affect you next year
• expect surgery
• changed doctors
• retired
• moved
• travel more or less

Even if your Medicare plan has changed very little for the upcoming year, your healthcare and lifestyle needs may have changed significantly. That's why reviewing your options each year is just as important as understanding Medicare updates.

"Every fall, people ask us, 'What's changing with Medicare?' That's an important question, but it's really only half the conversation. At Twin City Underwriters, we also ask our clients what's changed in their lives, because that's often what has the biggest impact on finding the right coverage." –  Twin City Underwriters Agent

Review Your Medicare Coverage Before 2027 Begins

Whether you're considering a new Medicare Advantage plan, a new Prescription Drug plan, or simply confirming your current plan is still the right fit, Annual Enrollment Period (AEP) is the ideal time to take a closer look. Attending an ANOC meeting and/or talking with a licensed Medicare insurance agent at Twin City Underwriters can help you understand this year's changes and compare your options with confidence.

Even if you've been happy with your Medicare coverage over the past year, it's still a good idea to review and understand changes for the upcoming calendar year. Our experienced team of licensed agents represents nearly every insurance carrier available in the Midwest and is knowledgeable about all plan types and coverage to help keep you informed and understand your options.

Reach out to set up a free, no-obligation appointment to review how Medicare changes for 2027 could impact you.

Sources:

https://www.cms.gov/files/document/2027-announcement.pdf

Choosing a Medicare plan can be difficult. Twin City Underwriters helps Medicare recipients in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa and Florida find the Medicare plan that meets their unique needs. Schedule a one-on-one meeting with one of our Medicare insurance brokers to get your questions answered!

Do you need help with Medicare, insurance and health plans? Explore your options with Allina Health Aetna, BlueCross BlueShield of Minnesota, Medica, HealthPartners, Health Spring, Humana, Security Health Plan, United HealthCare and more. We work with you to find the best plan for your needs and budget. Contact us today to get started.