Open enrollment for Medicare plans began Thursday, offering beneficiaries the opportunity to select new coverage options ahead of significant changes slated for 2027. The enrollment period, which continues until December 7, allows individuals to choose between traditional Medicare and privately administered Medicare Advantage plans, as well as prescription drug plans. Any changes made will take effect on January 1.
The enrollment period arrives as inflation continues to strain seniors' healthcare budgets, a concern frequently cited by voters heading into the midterm elections.
Key Changes for 2027
Starting in 2027, Medicare beneficiaries can expect several key policy shifts. The annual out-of-pocket spending cap for Medicare Part D prescription drugs will increase from $2,100 to $2,400, and the standard deductible will rise from $615 to $700.
A temporary federal subsidy designed to help offset Part D premiums, initially implemented in 2024, will also conclude at the end of 2026. This program was introduced by the Biden administration to lower prescription drug costs for beneficiaries, particularly in light of the 2022 Inflation Reduction Act.
New Medicare-negotiated prices will also go into effect for 15 drugs, including popular weight-loss and diabetes medications such as Ozempic, Rybelsus, and Wegovy. Other drugs affected include Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, Calquence, Austedo/Austedo XR, Breo Ellipta, Tradjenta, Xifaxan, Vraylar, Janumet/Janumet XR, and Otezla.
The Centers for Medicare & Medicaid Services (CMS) projects that these negotiated prices will reduce prescription drug spending for Medicare enrollees by $685 million in 2027.
Nancy LeaMond, Executive Vice President and Chief Advocacy Officer for AARP, stated that rising healthcare costs are increasingly burdening older Americans. She advised beneficiaries to "shop around, compare your options, and choose the coverage that's best for you."