5 Medicare Changes Coming in 2027: What Beneficiaries Should Know
As 2027 approaches, Medicare beneficiaries will see several changes involving premiums, prescription drug coverage, Medicare Advantage plans, and certain drug costs. While some changes may result in higher expenses, others could provide meaningful savings for eligible beneficiaries.
Understanding what is changing—and reviewing your coverage during Medicare Open Enrollment—can help you prepare for the year ahead.
1. Medicare Part B Premiums and Deductibles Are Expected to Increase
Medicare Part B covers physician services, outpatient care, durable medical equipment, and certain other medical services.
According to the 2026 Medicare Trustees Report, the standard Part B monthly premium is projected to increase from $202.90 in 2026 to $209.50 in 2027. The annual Part B deductible is projected to rise from $283 to $292. These 2027 figures are currently estimates, and final amounts may differ when officially announced. (Centers for Medicare & Medicaid Services)
For many retirees, Medicare Part B premiums are deducted directly from Social Security benefits, making these costs an important part of annual retirement-income planning.
2. Part D Costs and Premium Support Are Changing
Medicare Part D prescription drug coverage will also see several changes in 2027.
CMS has set the 2027 national base beneficiary premium at $41.33, up from $38.99 in 2026. This figure is used in calculating plan premiums; it does not mean every beneficiary will pay $41.33, since actual premiums vary by plan and location. CMS is also ending the temporary Part D Premium Stabilization Demonstration at the end of 2026, which had provided additional support to participating stand-alone prescription drug plans. (Centers for Medicare & Medicaid Services)
The standard Part D annual deductible will increase to $700, while the annual out-of-pocket threshold for covered Part D drugs will rise from $2,100 in 2026 to $2,400 in 2027. (Centers for Medicare & Medicaid Services)
Because premiums, formularies, deductibles, and copayments can vary significantly among plans, reviewing prescription drug coverage each year remains important.
3. Some Medicare Advantage Plans Are Changing or Leaving Markets
Medicare Advantage plans are offered by private insurers, and plan availability, provider networks, supplemental benefits, and costs can change from year to year.
Several insurers have announced changes to their Medicare Advantage offerings for 2027. For example, Humana has said targeted plan exits are expected to affect approximately 600,000 members. (Becker's Payer Issues | Payer News)
For beneficiaries enrolled in Medicare Advantage, the key step is to carefully review the plan's Annual Notice of Change. Even if a plan remains available, its premiums, provider network, prescription coverage, copayments, dental or vision benefits, and other features may change.
This makes the upcoming enrollment period an opportunity to confirm that current coverage still aligns with individual healthcare needs.
4. New Negotiated Prescription Drug Prices Take Effect
One potentially positive development for some Medicare beneficiaries involves prescription drug pricing.
Beginning January 1, 2027, negotiated Medicare prices will take effect for 15 selected Part D drugs. Because some negotiated products are sold under multiple brand names or formulations, the changes affect a broader group of recognizable medications.
The medications include products such as Ozempic, Rybelsus and Wegovy; Trelegy Ellipta; Xtandi; Pomalyst; Ibrance; Linzess; Calquence; Tradjenta; Xifaxan; Vraylar; and Otezla, among others. They are used to treat conditions ranging from diabetes and respiratory disease to cancer and other chronic illnesses. (Centers for Medicare & Medicaid Services)
The effect on an individual beneficiary's actual out-of-pocket costs will depend on factors including their specific Medicare drug plan, medication, pharmacy, and coverage circumstances.
5. The Medicare GLP-1 Bridge Continues Through 2027
Eligible Medicare Part D beneficiaries will continue to have access to certain weight-management medications through the Medicare GLP-1 Bridge through December 31, 2027.
The CMS demonstration provides qualifying beneficiaries access to certain versions of Wegovy, Zepbound and Foundayo for a $50 monthly copay. Eligibility requirements apply, and the program operates outside the normal Part D benefit structure. As a result, the $50 copay does not count toward a beneficiary's Part D annual out-of-pocket costs. (Centers for Medicare & Medicaid Services)
For eligible beneficiaries, the program may provide more predictable monthly costs for medications that can otherwise carry substantially higher prices.
Preparing for Medicare Open Enrollment
The combination of higher projected Part B expenses, changes to Part D, evolving Medicare Advantage offerings, and new prescription drug pricing makes the upcoming enrollment period particularly important.
Medicare Open Enrollment runs from October 15 through December 7, 2026, with coverage changes taking effect January 1, 2027. During this period, beneficiaries can review and change Medicare Advantage and prescription drug coverage or move between Medicare Advantage and Original Medicare, subject to applicable rules. (Medicare)
While some Medicare costs are expected to rise in 2027, new negotiated drug prices and expanded access to certain medications may provide savings for some beneficiaries. Taking time to understand the changes can help retirees enter the new year with greater clarity about their healthcare expenses and overall financial plan.
At Artiea Capital Management, we believe that staying informed about changes affecting retirement expenses is an important part of long-term financial planning. Healthcare costs are only one component of retirement, but understanding how they fit into the broader financial picture can help you prepare for what lies ahead.
Source: “5 Medicare Changes Coming in 2027 and What They’ll Cost You,” Elizabeth Guevara, Investopedia, September 9, 2026, legally licensed through AdvisorStream; Centers for Medicare & Medicaid Services.
This material is provided for general informational purposes only and is not intended as investment, tax, legal, medical, or insurance advice. Medicare rules, costs, plan availability, and benefits are subject to change. Individuals should review information from Medicare.gov and their individual plan documents or consult an appropriate qualified professional regarding their specific circumstances.