Medicare enrollees can start choosing their coverage for 2027 from Thursday and they should be aware of a series of changes taking effect next year.
The enrollment window runs until Dec. 7, allowing people to pick between traditional Medicare and privately run Medicare Advantage plans available in their area, as well as prescription drug plans. The plans take effect on Jan. 1.
Changes in 2027 include higher Part D out-of-pocket caps, the end of temporary federal Part D premium subsidies, and new drug price negotiations.
The enrollment period also lands at a moment when inflation is adding pressure on seniors whose healthcare costs have risen, and with midterm elections only weeks away. Voters have consistently said cost-of-living is a major concern headed into the elections.
The Social Security Administration, meanwhile, announced Wednesday that the annual cost-of-living adjustment for older adults and people with disabilities will rise by 3.6% beginning in 2027.
That works out to $75 extra per month for the nearly 72 million people who receive monthly Social Security benefits, and for about 7.3 million beneficiaries who get Supplemental Security Income.
Here are a few of the biggest changes:
Medicare Part D
The cap on annual out-of-pocket expenses for Medicare Part D drugs will rise to $2,400, up from $2,100 in 2026. The standard deductible will also increase, from $615 to $700.
The temporary Part D premium subsidy will end early as well. The Trump administration concludes at year's end a temporary Medicare Part D subsidy program that has helped offset premiums.
Former President Joe Biden's administration initially implemented the program in 2024 to lower patients' Medicare Part D prescription drug costs in response to effects of the 2022 Inflation Reduction Act.
The Centers for Medicare & Medicaid Services has projected only modest price increases for most people.
Drug price negotiations
New Medicare-negotiated prices, part of a Biden-era law that allows the haggling for Medicare, will go into effect for 15 drugs, including the weight-loss and diabetes medications Ozempic, Rybelsus and Wegovy.
Additionally, Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, Calquence, Austedo/Austedo XR, Breo Ellipta, Tradjenta, Xifaxan, Vraylar, Janumet/Janumet XR, and Otezla will be covered by Medicare as of Jan. 1.
CMS expects the change to lower prescription drug coverage for people enrolled in Medicare by $685 million in 2027.
AARP's Executive Vice President and Chief Advocacy Officer Nancy LeaMond said in a statement that “higher healthcare costs are making it harder for older Americans to afford the care they need."
“It’s more important than ever to shop around, compare your options, and choose the coverage that’s best for you," she added.
Other Trump administration promises
President Donald Trump has also made a series of promises to Medicare enrollees and retirees in recent weeks, alongside the changes.
Last week, Trump said his administration will make one-time payments of $90 per person in October to help more than 20 million Medicare enrollees – or less than one third of enrollees – pay for their Part B premiums. The payments will cost about $2 billion.
Roughly 35 million Medicare Advantage enrollees are not eligible, along with millions of other people with disabilities and low-income Medicare recipients.
According to the CMS website, eligible beneficiaries will receive one $90 rebate this month, with most getting a direct deposit. Others will receive a paper check from the Treasury Department later in October.
Trump also announced recently that roughly 1 million people would get rebate checks of $500 for Affordable Care Act premiums.
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