THE MEDICARE 2027 PLAN YEAR

Michael T. Braden October 11, 2026 MEDICARE NEWS

WHAT WE KNOW AND DON’T KNOW ABOUT THE MEDICARE 2027 PLAN YEAR

THE MEDICARE 2027 PLAN YEAR

If you are trying to understand the Medicare changes coming in 2027 and separate real numbers from headlines, you are in the right place. Some 2027 figures are confirmed, others are projections, and many remain pending. This article walks through each category so you can plan with the right information at the right time.

Photo of Braden Medicare Insurance's 2027 Medicare Changes Poster

WHAT HAS BEEN CONFIRMED SO FAR FOR THE 2027 PLAN YEAR?

Here is the straight answer on Medicare costs for 2027. The most concrete changes confirmed so far center on Medicare Part D: the standard deductible maximum is $700, the annual out-of-pocket threshold for covered Part D drugs is $2,400, and the national base beneficiary premium is $41.33. The Centers for Medicare & Medicaid Services (CMS) has also finalized 2027 Medicare Advantage and Part D program rules and confirmed that negotiated prices for 15 selected Part D drugs take effect January 1, 2027.

What is not final? The official 2027 standard Part B premium and Part B annual deductible have not been announced yet. The Part A deductible, coinsurance, and buy-in premiums are pending. IRMAA thresholds and surcharge amounts for both Part B and Part D remain pending. The full national average monthly premiums for Medicare Advantage and Part D plans, and the complete 2027 plan landscape have not yet been released. The trustees’ estimate of $209.50 for the monthly Part B premium is a projection, not an announced premium.

If you are enrolled in a Medicare Advantage plan or a stand-alone prescription drug plan, your ANOC may already contain confirmed plan-specific 2027 changes-even while the broader national data from CMS is still pending. That distinction matters: your plan’s numbers can be final before the national averages are published.

WHAT CAN YOU ACCOMPLISH DURING THE MEDICARE ANNUAL ENROLLMENT PERIOD?

The Medicare Annual Enrollment Period (AEP) runs from October 15 through December 7 every year. During this time, there are many things you can do, so let's take a look at all of the options available to each Medicare Beneficiary:

1.     If you have  Original Medicare and you have purchased a Medigap or Medicare Supplement plan, you do not need to do anything during the AEP.  This is because once you're approved, you own your policy as long as you pay your premiums.  Your Medigap/Medicare Supplement plan/policy continues month after month and year after year.  You don't need to reapply, unlike Medicare Advantage plans.

2.     If you have a Medicare Advantage plan (Medicare Part C), refer to your ANOC (Annual Notice of Change Letter) to see if your current plan is still available for the year 2027.  If so, great, you can keep your current plan.  But you need to verify that all of your doctors are still in your plan's network for next year, and that any/all of your prescription medications are covered in your plan's formulary.  Your broker can assist you, or you can use the Provider Search Tool available on your insurance carrier's website.

3.     If your doctors are no longer with the plan, and you want to keep them, we recommend you contact an independent Medicare broker in your area to assist you with finding a suitable plan that meets your needs and that has all of your providers in network. They will be happy to assist you, and they will not charge you a penny for their services.

4.     If you have a Stand-Alone Medicare Part D Prescription Drug Plan, please refer to your ANOC letter and see if your current plan is available for next year.  If it is, and all of your prescriptions are still covered, you do not need to do anything, but verify any potential changes in your monthly premiums.  If you would prefer to change plans, consult your broker or use the Medicare Prescription Tool at medicare.gov to enroll in a new plan.

5.     There are only 9 available stand-alone Part D drugs in each state, which is down from 23-26 options just four years ago. Every Part D plan is expected to increase premiums in 2027.

6.     If you have a Chronic condition and are a Medicare Advantage member, consult your broker and ask if you qualify for any C-SNP (Chronic Special Needs plans) in your area.  Many times, C-SNP plans offer more specific benefits that could be extremely important to you.  These can include travel, Meals, and enhanced supplemental benefits.  If you're unsure, please review the plans' Evidence of Coverage (EOC).

7.     If you currently have a Medicare Advantage plan and you want to go back to Original Medicare, you can also do that during the AEP.  And you can then choose and apply for a Medicare Supplement/Medigap plan that will start at 12:01 AM on January 1, 2027.

8.     Whether you have a stand-alone Part D Prescription Drug plan or a Medicare Advantage plan with Prescription coverage, you should make yourself familiar with the Medicare Prescription payment plans you may be entitled to receive.

A RE-CAP OF WHAT WE KNOW AS OF OCTOBER 11, 2026

THE MEDICARE PART D DEDUCTIBLE 

CMS has announced and confirmed that the maximum Medicare Part D deductible for all Medicare Drug plans will be $700 in 2027. Some plans may lower this amount, but it cannot go above $700.

THE MEDICARE PART D MOOP

Beginning in January 2025, Medicare eliminated the “Donut Hole” and replaced it with a maximum out-of-pocket cost of $2,100 for all Part D prescription medications for the year.  That was great. Last year, that Part D MOOP was increased to $2,200, and the Maximum Part D MOOP in 2027 will be $2,400.

THE BASE PREMIUM FOR MEDICARE PART

The Base premium for the Medicare 2027 Plan Year is $41.33 per month.  This is the average Medicare Part B premium nationwide, and it will be used if any Medicare Part D penalties are triggered.

THE MEDICARE PART D MOOP

Beginning in January 2025, Medicare eliminated the “Donut Hole” and replaced it with a maximum out-of-pocket cost of $2,100 for all Part D prescription medications for the year.  That was great. Last year, that Part D MOOP was increased to $2,200, and the Maximum Part D MOOP in 2027 will be $2,400.

THE MEDICARE PART B  MONTHLY PREMIUM

The Medicare Trustees Report released a few months ago projected the Annual Medicare Part B premium at $209.50.  As of today, this is not verified for 2027.  CMS typically announces the final premiums in mid-November.

THE MEDICARE PART B ANNUAL DEDUCTIBLE AMOUNT

The current Annual Medicare Part B Deductible is $283.  As with the 2027 Medicare Part B Premium, the final determination of the Medicare Part B annual deductible will be announced by mid-November.

2027 IRMAA BRACKETS

The 2027 IRMAA Brackets have not been finalized. The final breakdown of the 2027 IRMAA Brackets is typically announced/released in November for the upcoming plan year.

RATES AND PREMIUMS FOR 2027 MEDICARE PLANS

Every Medicare Beneficiary should have received their Medicare ANOC (Annual Notice of Change Letter) in September.  If you have not read yours, please do so immediately. Your current Medicare Advantage and/or Medicare Part D plan will state whether your current Medicare Advantage and/or Medicare Part D Prescription Drug plan will be available again in 2027, and what the premium will be.

Agents and brokers may not o discuss new plan rates with anyone until 12:01 AM on Thursday, October 15, 2026.  But based on the announcement a few weeks ago that the Trump administration was canceling Part D subsidies at the end of December, expectations are that every Medicare Part D drug plan will increase in 2027.

MEDICARE SUPPLEMENT/MEDIGAP PREMIUMS

Medicare Supplement and Medicare Premiums are available every day of the year.  They are not subject to the same pricing moratorium as Medicare Advantage and Medicare Part D plans.  That being said, I anticipate that we will continue to see increased premiums for Medicare Supplement/Medigap plans across the board, with Medigap Plan F having the largest premium increases, followed by Medigap Plan G and Medigap Plan N.

CONFIRMED CHANGES BEGINNING JANUARY 1, 2027

MEDICARE CONTINUES THE NEXT ROUND OF NEGOTIATING MEDICARE PLAN PRESCRIPTION COSTS

Under the Inflation Reduction Act’s Medicare Drug Price Negotiation Program, negotiated maximum fair prices for 15 selected Part D drugs from the second negotiation cycle take effect January 1, 2027.

The effect on your bill depends on whether you take one of the selected drugs, how your plan covers it (tier & formulary placement), and where you are in the benefit phases. Do not expect a single fixed dollar saving; verify the official list of selected drugs and negotiated prices on CMS.gov.

CMS HAS POSTED ITS FINAL RULES FOR MEDICARE PART D COVERAGE IN 2027

CMS finalized changes to Medicare Advantage and Part D Star Ratings, codified key elements of the redesigned Part D benefit, and clarified administration of certain supplemental benefits. The 2027 final rule refocuses Star Ratings on clinical care, outcomes, and patient experience. It also requires plans to publicly post their plan-developed eligibility criteria for Special Supplemental Benefits for the Chronically Ill. These are program-level rules; they do not mean every member will see the same change.

For your Medicare coverage, review the ANOC and other plan notices for changes to cost sharing, provider networks, prior authorization requirements, drug tiers, supplemental-benefit eligibility, and whether the plan will continue in your area.

WHAT PREMIUMS AND COSTS HAVE STILL NOT BEEN APPROVED FOR THE 2027 MEDICARE PLAN YEAR?

As of the September 24, 2026 review date, the following Medicare premiums for 2027 and cost figures have not been officially released.

THE OFFICIAL MEDICARE PART B PREMIUM AND THE MEDICARE PART B DEDUCTIBLE ARE NOT FINALIZED YET

The 2026 Medicare Trustees Report estimates that the standard Part B premium will be $209.50 per month in 2027. However, the report states that Part B financing rates are set only through December 31, 2026. The $209.50 figure is a projection, not an announced premium. CMS has not announced the official 2027 Part B deductible.

CMS generally releases final Parts A and B amounts later in the fall-often in October or November-but no specific date is guaranteed. In past years, actual premiums have sometimes differed from trustees' estimates depending on spending patterns and policy decisions.

Most Medicare beneficiaries pay the standard Part B premium for outpatient care and services.

THE MEDICARE PART A DEDUCTIBLE & COINSURANCE ARE NOT FINALIZED

The 2027 inpatient hospital deductible, daily coinsurance amounts for hospital and skilled nursing facility stays, and premiums for people who must buy Part A have not been finalized. Most people qualify for premium-free Part A based on their work history, but the cost-sharing dollar amounts beneficiaries may owe change annually and remain pending. Do not rely on third-party projections as final numbers.

THE FINAL 2027 IRMAA LEVELS ARE NOT FINALIZED

IRMAA is an additional amount some higher-income beneficiaries pay with Part B and Part D premiums. The calculation generally uses a two-year tax-return lookback. Hence, a 2027 determination generally looks to 2025 modified adjusted gross income. The Social Security Administration explains that most beneficiaries pay 25% of total Part B costs through the standard premium. Higher-income beneficiaries pay 35%, 50%, 65%, 80%, or 85%, depending on the income level used for the determination.

The official 2027 income thresholds and surcharge dollar amounts remain pending. Once Social Security issues a determination, you do not have to accept it if your income dropped significantly because of a qualifying life-changing event, such as retirement, marriage, divorce, the death of a spouse, loss of income-producing property, pension loss, an employer settlement payment, or a work reduction. You can appeal through Social Security and request a new decision under its rules. Form SSA-44 is the form used to request a new IRMAA decision after a qualifying life-changing event. A one-time sale can also affect the income used to determine IRMAA.

Until CMS and SSA announce the final 2027 figures, avoid relying on unofficial calculators. For a deeper explanation of how the Income Related Monthly Adjustment Amount works, see this IRMAA guide.

MEDICARE SUPPLEMENT/MEDIGAP PLANS DO NOT HAVE ANY NATIONAL PREMIUMS

Medigap premiums come from private insurers and vary by state, rating method (attained-age, issue-age, or community-rated), eligibility factors such as age, household discounts, and the insurer selling the policy. In most states, Medicare standardizes lettered Medigap benefit packages, while Massachusetts, Minnesota, and Wisconsin use different standardization systems. Premiums are not set nationally.

The standardized coverage design generally remains stable from year to year. Dollar amounts tied to Medicare cost-sharing, such as the Part A deductible or the Part B deductible, can change when Medicare’s underlying amounts change, which may affect what Medigap insurers pay on your behalf.

Current 2027 Medicare Advantage and Part D changes do not automatically require a Medigap member to switch plans. If you are considering a switch from a supplement plan, keep in mind that in many states, switching Medigap plans may involve medical underwriting once your initial open enrollment period has passed. For a broader look at how Medigap fits into your overall Medicare costs, see this Medicare cost overview.

OUR ADVICE ON HOW EVERY MEDICARE BENEFICIARY SHOULD REVIEW THEIR ANOC (ANNUAL NOTICE OF CHANGE LETTER)

Your ANOC is the fastest path to understanding what changes in your specific plan. Go through it line by line:

• MONTHLY PREMIUMS – Compare the 2027 amount to what you pay now.

• MEDICAL & PRESCRIPTION DEDUCTIBLES – Check whether your plan uses the full $700 Part D deductible or a lower amount, note what portion of any deductible or medical cost sharing you would pay yourself, and note any medical deductible changes.

• COINSURANCE & COPAYS – Look for increases on services you use regularly, including office visits, specialist visits, and prescription drug tiers.

• MOOP FOR MA & MAPD PLANS – See whether your in-network safety cap has changed.

• TRIPLE CHECK THAT YOUR DOCTORS & HOSPITALS ARE IN NETWORK – Confirm your providers remain in-network.

• DRUG FORMULARIES, TIERS, AND RESTRICTIONS – Verify your medications are still covered, confirm how the plan treats each prescription drug, and note any tier changes.

• IS YOUR PHARMACY A PREFERRED PHARMACY – Ensure your usual pharmacy is still in the network at the tier you expect.

• PRIOR AUTHORIZATION RULES – Note any new requirements that could affect access.

• YOUR EXTRA BENEFITS & LIMITS – Review changes to dental, eye, hearing, fitness, or transportation benefits.

• IS YOUR PLAN ENDING? – If your plan is ending, review the ANOC and any separate nonrenewal notice for the instructions and deadlines.

Compare total expected cost-premium plus out-of-pocket spending-and access to the providers and medications you need, not premium alone.

NEXT STEPS FOR YOUR 2027  MEDICARE AEP CHECKLIST

The confirmed 2027 figures give you a starting point. The pending numbers will fill in the rest over the coming weeks.

1. Read your ANOC letter as soon as it arrives-it contains your plan’s confirmed 2027 changes.

2. Treat projected figures like $209.50 as planning estimates, not final amounts.

3. Verify final federal amounts on Medicare.gov and CMS.gov when they are released.

4. During the October 15–December 7 Annual Enrollment Period, compare plan-specific total costs, not just premiums.

5. For individualized help, use Medicare.gov, call 1-800-MEDICARE, or contact your State Health Insurance Assistance Program (SHIP), or other sources you trust.

WRAPPING THINGS UP

Congratulations, you made it through, and thank you for being attentive and for taking control of your Medicare. I know we covered a lot of ground in a short time, and you all get 5 Stars from me for processing all the information we provided in this article about the 2027 Medicare Plan Year, or at least what we know as of October 11, 2026.

I know you are more confident and empowered about understanding the premise and concepts of Medicare.  As you work with your Medicare Broker, you will continue to expand your knowledge and confidence knowing what Medicare is, what Medicare provides, and what your Medicare options are. 

You will find a lot of interesting and additional information on our website at www.bradenmedicare.com. While you are on the website, you can complete the Contact Us page or, if you prefer, email me directly at mike@bradenmedicare.com or call me at (480) 225-1393.

You can also call Medicare directly with questions at 1-800-MEDICARE (1-800-633-4227) or visit the Medicare.gov website to start a live chat. TTY users should call 1-877-486-2048.