Medicare's open enrollment for 2027 is now live, and beneficiaries face a mix of higher costs and some relief from new drug price negotiations. The window to switch plans runs through December 7, and several changes will take effect in the new year.
Key Changes for 2027
The out-of-pocket limit for Part D prescription drug coverage will rise to $2,400 in 2027, up from $2,100 in 2026. The standard Part D deductible also increases to $700, a jump from $615. These adjustments mean many seniors will pay more before their coverage kicks in, though the higher costs come alongside new drug deals that could offset some expenses for certain medications.
On the drug pricing front, Medicare has negotiated lower prices for 15 additional drugs, including several GLP-1 medications such as Ozempic, Rybelsus, and Wegovy. Other drugs on the list include Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Trelegy, Linzess, Calquence, Austedo, Breo Ellipta, Tradjenta, Xifaxan, Vraylar, Janumet, and Otezla, as reported by Newsweek.
Part B Premiums and Deductibles
The Medicare Part B premium is projected to increase to $209.50 per month in 2027, up from $202.90 in 2026, according to the 2026 Medicare Trustees Report. The annual Part B deductible is also projected to rise, from $283 to about $292. While this increase is modest compared to last year's nearly 10% jump, it still adds to the financial burden on seniors.
Retirees will see a 3.6% cost-of-living adjustment (COLA) in their Social Security benefits, the largest in four years. This will boost the average monthly retirement benefit by $75 starting in January, or about $900 over the year, bringing the average to $2,170. However, the higher Part B premium could eat into that gain.
Broader Context
These changes come amid ongoing debates about healthcare affordability and the sustainability of Medicare. The program faces financial pressures, and some insurers are dropping Medicare Advantage plans for over a million seniors, limiting choices. As costs rise, some policymakers are calling for a healthcare financing overhaul to address premium increases and enrollment drops.
For beneficiaries, the key is to review their current plans and compare options during open enrollment. Even with higher deductibles and premiums, the new drug price negotiations could lead to savings for those on expensive medications. It's essential to check whether your drugs are on the negotiated list and whether your plan covers them.
With the December 7 deadline approaching, seniors should act soon to ensure they have the best coverage for the coming year. The changes for 2027 are significant, and understanding them is crucial to managing healthcare costs.
