Medicare Open Enrollment ends Monday, December 7, 2026, and any changes take effect January 1, 2027. The Centers for Medicare & Medicaid Services (CMS) says about eight in 10 Medicare Advantage members can keep their current plan with the same or a lower premium next year. The remaining two in 10 have about five weeks to review what changed.
Key Takeaways
- CMS projects the average monthly Medicare Advantage premium to fall 16.5%, from $14.37 in 2026 to $12.00 in 2027.
- The annual Part D out-of-pocket cap on covered prescription drugs rises from $2,100 to $2,400 in 2027, and the standard deductible rises from $615 to $700.
- Average premiums for standalone Part D drug plans are projected to rise less than $1 a month, from $35.09 to $36.
- About 34 million people are projected to be in Medicare Advantage in 2027, roughly 47.4% of everyone in Medicare.
- People who want to keep their current coverage generally don’t need to re-enroll.
Most Medicare Advantage Members Can Keep Their Current Plan
For most people, the 2027 Medicare Open Enrollment season requires little action. CMS’s own estimate is that about eight in 10 Medicare Advantage members can stay in their current plan in 2027 with the same or a lower premium. Medicare also says people who want to keep their current coverage generally don’t need to re-enroll.
That still leaves roughly two in 10 members whose premiums are rising, or whose plans are changing in other ways. Those other changes don’t always show up in the premium. Doctors in the network, pharmacies, covered drugs and copays can all change from one year to the next, so a stable premium doesn’t guarantee stable coverage.
The CMS numbers show the scale of the season. Based on plan projections, about 34 million people will be enrolled in Medicare Advantage in 2027, about 47.4% of everyone in Medicare. CMS says plan projections have historically understated actual enrollment.
Medicare Advantage Premiums Are Projected to Fall 16.5% in 2027
CMS projects the weighted average monthly premium across all Medicare Advantage plans to fall from $14.37 in 2026 to $12.00 in 2027. That average includes plans with drug coverage and Special Needs Plans. For Medicare Advantage plans that include drug coverage, the average drug portion of the premium is projected to fall from $11.32 to $7 after rebates, a 38% decrease.
Choice remains broad nationally. More than 99% of Medicare beneficiaries will have at least one Medicare Advantage plan available, and 97% will have 10 or more. The number of plans nationwide changes only slightly, from 5,553 in 2026 to about 5,532 in 2027. CMS expects supplemental benefits such as hearing, dental and vision to stay stable. Plan availability still varies by county, and CMS publishes state-by-state fact sheets for 2027.
Part D Drug Coverage Changes on January 1
People with prescription drug coverage will see three changes in 2027. First, the annual out-of-pocket cap on covered Part D drugs rises from $2,100 to $2,400, according to CMS’s 2027 rate announcement. Once a member’s spending reaches that amount, they pay nothing more for covered drugs for the rest of the year. Second, the standard Part D deductible rises from $615 to $700.
Third, a temporary federal program that held down premiums for standalone Part D plans ends as scheduled in 2027. CMS still projects the average standalone Part D premium to rise less than $1 a month, from $35.09 to $36. The agency says 88% of beneficiaries who don’t qualify for low-income help will have a basic Part D plan available for $10.30 or less a month. Separately, negotiated prices for 15 more drugs take effect January 1 under Medicare’s drug price negotiation program.
Why the Premium Numbers Matter for Household Budgets
For retirees on fixed incomes, small monthly changes add up over a year. That’s especially true with households already watching their spending. The timing lines up with October’s rebound in consumer confidence even as Americans plan to spend less. Medicare’s averages describe the national picture, and each person’s costs depend on their own plan, drugs and pharmacy.
New Medicare.gov Tools Show What Changed in Each Plan
The first thing to check is the Annual Notice of Change. Medicare Advantage and Part D plans send it to members by September 30 each year. It lists changes to the plan’s costs and coverage for the coming year.
Medicare.gov’s Plan Finder has added features for this season. Starting in October, users can see more detail about preventive services, open plan documents such as drug formularies and the Summary of Benefits directly from Medicare.gov, and see clear messages about changes affecting their current plans in 2027. The site also offers more secure sign-in options and lets users save their providers to compare plans.
For help by phone, 1-800-MEDICARE is available 24 hours a day, seven days a week, to help compare plans and costs.
Programs Can Lower Medicare Costs for People With Limited Income
Two federal programs can reduce costs for people with limited income and resources. Medicare Savings Programs may help pay Medicare premiums, and may also cover deductibles, coinsurance and copayments for eligible people. Extra Help covers Part D premiums, deductibles, coinsurance and other drug costs. People who enroll in a Medicare Savings Program automatically qualify for Extra Help. Details on both programs are available on Medicare.gov.
FAQs
When does Medicare Open Enrollment end in 2026?
Medicare Open Enrollment ends Monday, December 7, 2026. It began October 15, and changes take effect January 1, 2027.
Do I need to re-enroll in Medicare every year?
No. People who want to keep their current Medicare coverage generally don’t need to re-enroll. Reviewing the Annual Notice of Change is still a good way to confirm the plan’s costs and coverage for 2027.
What is the Medicare Part D out-of-pocket maximum in 2027?
The annual out-of-pocket cap on covered Part D drugs is $2,400 in 2027, up from $2,100 in 2026. The standard deductible rises from $615 to $700.
Are Medicare Advantage premiums going down in 2027?
On average, yes. CMS projects the average monthly Medicare Advantage premium to fall from $14.37 to $12.00, a 16.5% decline. Individual plans may still raise premiums.
How can I compare Medicare plans for 2027?
The Medicare Plan Finder on Medicare.gov compares premiums, costs, benefits and coverage across plans. Help is also available by phone at 1-800-MEDICARE, 24 hours a day.
Is there help paying Medicare costs?
Yes. Medicare Savings Programs and Extra Help can lower premiums and drug costs for people with limited income and resources. Enrolling in a Medicare Savings Program automatically qualifies a person for Extra Help.
