Medicare is set for several important changes in 2027. Some will affect monthly premiums, while others could change prescription costs, plan choices, and access to certain benefits. For many retirees, even a modest increase can matter because Medicare premiums often come directly out of Social Security payments.
Medicare Advantage and Part D members will receive an Annual Notice of Change before the end of September. This document explains how premiums, benefits, coverage rules, and other costs will change in 2027.
Social Security payments may also rise. The Senior Citizens League currently projects a 3.6% cost-of-living adjustment for 2027, or about $70 more per month. That compares with a 2.8% adjustment in 2026.
Medicare open enrollment runs from October 15 through December 7. During this period, beneficiaries can change Medicare Advantage plans, move between traditional Medicare and Medicare Advantage, or join, switch, or drop a Part D plan.
1. Part B Premiums Are Expected to Rise
The standard Medicare Part B premium is projected to reach $209.50 per month in 2027. That would be $6.60 higher than the 2026 premium, based on projections from the Medicare Board of Trustees.
Part B generally covers outpatient medical care, doctor visits, and other services outside hospital inpatient care. Medicare Advantage members also continue to pay the Part B premium.
The Part B deductible is expected to increase as well. The projected 2027 deductible is $292, compared with $283 in 2026.
Income can also affect what some beneficiaries pay. Higher-income Medicare members may face an Income-Related Monthly Adjustment Amount when their modified adjusted gross income exceeds $109,000 for single filers or $218,000 for married couples filing jointly. Some lower-income beneficiaries may qualify for assistance with Medicare costs.
These increases make the Annual Notice of Change especially important for anyone comparing total healthcare expenses for the year ahead.
2. Part D Premium Support Will End
Prescription drug coverage is also changing. Medicare beneficiaries can obtain Part D through a stand-alone prescription plan or as part of a Medicare Advantage plan.
In 2027, the annual Part D out-of-pocket limit is scheduled to rise from $2,100 to $2,400, according to the CMS Trustees.
CMS announced in July that the 2027 Part D base premium would be $41.33. That is $2.34 higher than the 2026 figure. The final premium change is expected to be announced in September.
Another major change involves a temporary premium subsidy created during the Biden administration. CMS said the program would end two years earlier than originally planned. The subsidy helped insurers limit premium increases while they adjusted to the Part D changes created by the Inflation Reduction Act.
CMS Administrator Mehmet Oz wrote on X that most premiums would increase by less than $10.
The Medicare Payment Advisory Commission estimated that the subsidy saved beneficiaries an average of $16 per month in 2026. The Government Accountability Office also found that, during the first year of the program, people who stayed in the same plan from 2024 to 2025 could have faced doubled premiums without the subsidy.
3. Some Medicare Advantage May Disappear
Medicare Advantage plans are offered by private insurers and can provide benefits that traditional Medicare does not typically include, such as dental and vision coverage. Plans can also have different premiums, deductibles, provider networks, and cost-sharing rules.
That makes checking plan changes essential for 2027.
Ciannah Correa, a research fellow at Georgetown University’s Medicare Policy Initiative, advised beneficiaries to confirm that their current Medicare Advantage plan will remain available.
Some insurers are reducing their Medicare Advantage offerings. Humana, for example, announced that it would not renew plans covering about 600,000 beneficiaries in 2027.
Correa also advised people who plan to remain with their current plan to check whether supplemental benefits will stay at the same level.
“Even if you’re planning to stay in the same plan, make sure you check that your plan actually is maintaining the same level of supplemental benefits, or at least an adequate level for what you need,” Correa said.
Once open enrollment begins, beneficiaries should also confirm that their doctors and other healthcare providers remain in-network. Free assistance is available through local State Health Insurance Assistance Programs, while Medicare plan brokers can also help with comparisons.
4. Negotiated Drug Prices Expand
The Inflation Reduction Act gave CMS authority to negotiate prices for certain high-cost prescription drugs. The first group of 10 negotiated drugs took effect in 2026.
A second group will receive negotiated prices in 2027.
The affected medications include:
– “Ozempic,” “Rybelsus,” and “Wegovy” for GLP-1 treatment
– “Trelegy Ellipta” and “Breo Ellipta” for asthma and COPD
– “Xtandi” for advanced prostate cancer
– “Pomalyst” for multiple myeloma and Kaposi sarcoma
– “Ibrance” for advanced or metastatic breast cancer
– “Ofev” for certain chronic lung diseases involving scar tissue
– “Linzess” for irritable bowel syndrome with constipation
-“Calquence” for mantle cell lymphoma
– “Austedo” and “Austedo XR” for tardive dyskinesia and Huntington’s disease chorea
-“Tradjenta,” “Janumet,” and “Janumet XR” for type 2 diabetes
-“Xifaxan” for hepatic encephalopathy recurrence and IBS with diarrhea
– “Vraylar” for major depressive disorder
-“Otezla” for plaque psoriasis, psoriatic arthritis, and oral ulcers
The negotiated prices are intended to reduce costs for Medicare beneficiaries using these medications.
5. The GLP-1 Bridge Continues
Medicare’s GLP-1 Bridge program is scheduled to continue through the end of 2027. Under the pilot, eligible beneficiaries can receive “Wegovy,” the “Zepbound KwikPen,” and “Foundayo” for a $50 monthly payment.
Eligibility is limited. Beneficiaries must have Part D and meet certain health criteria. These include a BMI of at least 35, or a BMI between 30 and 34.9 along with conditions such as heart disease, a previous heart attack or stroke, peripheral artery disease, or high blood pressure.
People who already receive Part D coverage for a GLP-1 drug, including coverage related to type 2 diabetes, cannot move to the $50 Bridge price.
The $50 payment also does not count toward the annual Part D out-of-pocket limit.
Rachel Schmidt, a research professor at the Medicare Policy Initiative, noted that people who qualify for GLP-1 coverage through their Part D plans may face higher cost sharing than the Bridge program’s advertised $50 monthly amount.
“They have to go through their Part D plans, and sometimes the cost sharing for that can be higher than the $50 per month that’s advertised through the bridge program,” Schmidt said. “That can be frustrating for people.”
What to Check Before Open Enrollment
The 2027 changes make plan review more important than simply renewing the same coverage. Before December 7, beneficiaries should check their Annual Notice of Change, compare premiums and deductibles, review prescription coverage, and confirm that preferred doctors remain in-network.
Drug costs deserve special attention, particularly for people who take expensive prescriptions or rely on GLP-1 medications. A plan with a lower monthly premium may not always have the lowest overall cost after deductibles, copayments, and prescription expenses.
Medicare costs can change in several places at once. Part B premiums may rise, Part D support is ending, some Medicare Advantage plans may leave the market, and negotiated drug prices will affect a new group of medications.
Reviewing coverage during the October 15 to December 7 enrollment period gives beneficiaries time to compare those changes before the new year begins. The Annual Notice of Change is a useful starting point because it shows how a specific plan will affect premiums, benefits, drug coverage, and out-of-pocket costs in 2027.
