Upcoming Medicare Open Enrollment: Key Points

Medicare Changes in 2027: What Recipients Need to Know

Starting Oct. 15, the Medicare open enrollment period begins, bringing with it a plethora of changes that will come into effect in 2027. Till Dec. 7, enrollees of traditional Medicare have the opportunity to modify their Medicare Part D prescription drug plan. In some states, the changes also allow for the switch from a Medicare Advantage plan to traditional Medicare or to a different Medigap plan.

As confirmed by AARP on Oct. 5, Part B premiums and deductibles are set to increase in the coming years. This is in line with a forecast from the Medicare Board of Trustees. The prediction suggests that the standard monthly premium payment might jump by $6.60, reaching $209.50 per month in 2027. The annual Part B deductible, covering physician administered drugs, diagnostic tests and preventive care, may also go up from $283 this year to $292 in 2027. CMS will release the actual deductibles and premium rates for 2027 later this fall.

Increased Costs for Part D Drug Benefits

Starting in January, some recipients of Part D drug benefits will face increased costs. The Part D out-of-pocket cap, initiated under the Inflation Reduction Act in 2025 at $2,000, rose to $2,100 this year and is expected to reach $2,400 in 2027.

Legal Immigrants Risk Losing Coverage

Changes in regulations could potentially affect almost 100,000 immigrants who are enrolled in Medicare legally, as per a report from Justice in Aging, an advocacy group. These immigrants have lawfully lived, worked, and contributed to the program for at least a decade. However, according to the group’s report, many of these Medicare members might lose access to Medicare early in 2027.

This follows the July 2025 passage of H.R.1, the budget reconciliation bill by Republicans. This bill, which slashed almost $1 trillion from Medicaid, also contained rules that end Medicare eligibility for certain groups of legal immigrants from the next year. Those in jeopardy include humanitarian immigrants, refugees, asylees, those with temporary protected status, and survivors of trafficking or domestic violence, according to U.S. Citizenship and Immigration Services.

Natalie Kean of Justice in Aging warned in an email statement that many older immigrants could lose their Medicare coverage without even knowing until they need care. The proposed rule does not provide sufficient notice, and for people with severe illnesses, like cancer, the consequences could be potentially fatal, she added.

After the rule affecting certain legal immigrants was proposed by Medicare, Justice in Aging submitted comments and got over 100 organizations to sign a letter. The letter requests that Medicare formulate a strong notification process to reduce the burden on individuals as much as possible.

Rising Costs for High-Cost Drugs

Like previous years, beneficiaries will face higher costs in 2027. The out-of-pocket cap for Part D drug plans is set to hit $2,400 in 2027. This will result in beneficiaries who use higher-cost prescriptions paying more immediately at the pharmacy counter. To assist these individuals, they can enroll in the Medicare Prescription Payment Plan. This plan divides the $2,400 cap into approximately equal monthly payments rather than requiring payment upfront early in the year. Enrollment in this plan is not automatic and beneficiaries must request it through their plan. Also, anyone changing plans during open enrollment must set it up with the new plan once enrollment is effective.

Anticipated Rise in Medigap Premiums

Medigap premiums are also expected to rise. Norris and her colleagues analyzed data from some national plans, which indicated that many will charge double-digit percentage increases for 2027, and another increase might happen in 2028. These increases fall on each enrollee’s individual policy anniversary, not on a uniform January 1 schedule.

However, switching Medigap plans may not be easy for most beneficiaries. For seniors who need free, unbiased one-on-one counseling from experts on how to enroll in Medicare Advantage, Medigap or Medicare prescription drug plans, the State Health Insurance Assistance Program (SHIP) is available in every state.

SHIP advisers can guide seniors regarding the one-time, six-month enrollment period tied to turning 65 and enrolling in Medicare Part B. Post this date, SHIP advisors can explain how to switch Medigap plans in most states — even to a different plan from the same insurer. They can also explain the possibility of medical underwriting requirements, which could prevent a senior from switching in case of a health change.

Certain states, such as New York and Connecticut, do not allow insurers to use underwriting for Medigap applicants irrespective of when they apply. Other states like Massachusetts, Maine, Missouri, Washington state, and more have their own limited windows or “birthday rule” provisions allowing switching without underwriting under specific conditions. Medicareresources.org lists these rules for each state.

Impact of Changes for Journalists

Many seniors will need to find new coverage this fall as some Medicare Advantage plans will leave the market in 2027 and other insurers will reduce their service areas or drop their contracts. Here are three KFF reports on these issues:

Medicare Open Enrollment and Coverage Options: Key Questions and Answers

Medicare Advantage Plan Availability Varies Widely by County for 2027

How Much Do People with Medicare Pay for Coverage?

Additional Resources