It's always wise to review your Medicare coverage this fall, but 2027 brings greater-than-usual changes. Premiums and costs for Part D prescription drug plans will rise sharply for some, while the number of Medicare Advantage plans is falling in certain regions. Some Advantage plans will also increase cost-sharing and reduce supplemental benefits like dental care.
"The stakes this year may be higher for people who don’t compare plans during the open enrollment period," says Juliette Cubanski, vice president and director of the program on Medicare policy at KFF. "You could definitely be leaving more money on the table."
The market for Part D plans is shifting following the Inflation Reduction Act of 2022, which introduced an annual out-of-pocket cap on drug spending. In 2027, the cap will be $2,400, with the maximum deductible rising to $700. The Biden administration previously offered temporary subsidies to offset premium increases, but the Trump administration ended those for 2027, raising concerns about soaring costs.
Among the largest increases are United Healthcare’s AARP-branded plans, which enroll more than two million people. Monthly premiums for AARP Medicare Rx Preferred will rise by $50 or more across all 50 states and the District of Columbia. Zero-premium drug plans are also disappearing, with four million seniors enrolled this year expected to pay $10 or less per month going forward.
Source: New York Times Business · Summarized by HeadlinesBriefing