What changes are coming to Medicare in 2027, and how can I make sure I am not paying too much for my coverage?

If you have Medicare, now is a good time to make sure you are getting the best coverage for your money. Open enrollment runs through December 7, giving you a chance to switch Medicare Advantage or prescription drug plans for 2027. Because costs, drug coverage and extra benefits can change from year to year, comparing plans now could save you money and frustration down the road. Even if you are content with your current plan, do not assume next year’s coverage will be the same. Here is what to look for.

Prescription drug changes

Medicare Part D prescription drug plans are changing, and some enrollees could pay more. In 2027, the maximum annual deductible will rise from $615 to $700. The annual out-of-pocket limit for covered Part D medications will also increase from $2,100 to $2,400.

The out-of-pocket limit helps protect people who take expensive medications. Average premiums for stand-alone Part D plans are projected to rise by less than $1 a month, but individual plans differ considerably. A temporary federal program that helped stabilize premiums is also ending, making it especially important to compare your options.

At the start of the year, your insurer may change its list of covered drugs, known as a formulary, or move your medication to a more expensive cost tier. To understand your potential costs for 2027, you should verify that your prescriptions will still be covered and what you will be charged for them.

Medicare Advantage changes

If you have Medicare Advantage, the private-insurance alternative to Original Medicare, review your plan carefully. Some insurers are dropping plans or leaving certain markets, while others may change costs or trim extra benefits, such as dental, vision and hearing coverage. If your plan is discontinued, you will need to choose new coverage.

Doctor, specialist and hospital networks may also change next year. Even if your plan continues, compare next year’s costs, benefits and provider networks before automatically renewing.

Help with weight-loss drugs

A recently launched Medicare GLP-1 Bridge program offers eligible beneficiaries access to weight management medications through December 31, 2027. The medications covered under this program are Wegovy, Zepbound (KwikPen only) and Foundayo, with a $50 copayment.

There are eligibility requirements to qualify for the program. These requirements include that you need Medicare drug coverage and meet specific body mass index and health requirements. The program operates separately from regular Part D coverage, which means the $50 monthly payment does not count toward your Part D deductible or annual out-of-pocket limit. For more information and to check your eligibility, visit online at Medicare.gov/coverage/weight-loss-drugs.

A guide to smarter shopping

To avoid overpaying for coverage, start by reviewing your plan notice. Your insurer will send an Annual Notice of Change explaining next year’s premiums, deductibles, copayments and coverage changes. Medicare Advantage members should also check provider networks and extra benefits.

Your next step should be to compare your estimated total costs for the year. Visit Medicare.gov/plan-compare and enter your medications and preferred pharmacies to compare plans and estimate annual costs. Do not focus only on premiums but also on deductibles and what you will pay for prescriptions.

Next, check with your healthcare providers. If you are considering Medicare Advantage, contact your healthcare providers and hospitals directly to confirm that they will accept the specific plan you are considering in 2027. While online directories may be helpful, they are sometimes outdated so it is best to call to confirm.

Get free help

Your State Health Insurance Assistance Program provides free Medicare counseling. Find a local counselor at ShipHelp.org or call 877-839-2675.

One important note: If you are considering switching from Medicare Advantage to Original Medicare, check your Medigap options first. In most states, insurers can deny you a Medigap policy or charge higher premiums based on your health history if you do not qualify for guaranteed-issue protections. Make sure you understand your options before dropping your current plan.

Take time to compare plans before December 7. A little homework now may save you money and help you start 2027 with better coverage.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.