Medicare 2027: what changes and what to review before December 7
The drug out-of-pocket cap rises, some Part D premiums change and 15 more drugs get negotiated prices. Review your plan in time.
Every fall, Medicare plans change their prices, networks and drug lists. For 2027, the biggest changes are in drug coverage. Here's what to review, in plain words.
How long can I change plans?
The Annual Enrollment Period runs October 15 to December 7, 2026. Changes start January 1, 2027. If you have Medicare Advantage, you can also make one change between January 1 and March 31.
Drug coverage changes (Part D)
| 2026 | 2027 | |
|---|---|---|
| Yearly cap on covered drug costs | $2,100 | $2,400 |
| Highest standard deductible | $615 | $700 |
Once what you pay for covered drugs reaches $2,400, you pay nothing more for them the rest of 2027. The cap applies to Part D plans and to Medicare Advantage plans with drug coverage. Many plans charge less than the highest deductible, and some have none.
Two protections stay: covered insulin costs no more than $35 a month, and you can spread drug costs into monthly payments with the Medicare Prescription Payment Plan.
Will my premium go up?
It might. A temporary program that held down premiums for standalone drug plans is ending. CMS says most people will see increases under $10 a month, and some will pay less. Check your Annual Notice of Change, which your plan should have mailed by September 30.
Negotiated prices for 15 more drugs
On January 1, 2027, Medicare-negotiated prices take effect for 15 more drugs, including Ozempic, Wegovy and Rybelsus, Trelegy Ellipta, Xtandi, Ibrance, Linzess and Janumet. What you pay at the pharmacy still depends on your plan's copay, so compare using your actual prescriptions.
What to review before December 7
- Your Annual Notice of Change: premiums, copays and covered drugs.
- That each drug is still on the plan's list, at a tier you can afford.
- Your preferred pharmacy.
- With Medicare Advantage: that your doctors and hospitals are still in network.
- The total yearly cost, not just the premium. A $0 plan can cost more if your drugs cost more.
Want to go over it together? A Medicare-certified agent compares plans against your doctors and medications, at no cost. See how we help with Medicare.
Sources
- CMS: 2027 Medicare Advantage and Part D rate announcement and fact sheets
- Medicare.gov: Joining a plan
- Medicare.gov: Drug price negotiation
This guide is general information, not tax or legal advice. Rules and dates can change; confirm details for your state with your agent or the official source.