Medicare beneficiaries face one of the most consequential enrollment seasons in years, as the elimination of a key Part D premium subsidy and shifting Medicare Advantage reimbursements are set to reshape costs and coverage during the 2027 Annual Enrollment Period.

From Oct. 15 to Dec. 7, Medicare beneficiaries can join, switch or drop a Medicare Advantage plan or a Part D prescription drug plan, or move between original Medicare and Medicare Advantage. The choices they make take effect Jan. 1, 2027.

Current beneficiaries automatically re-enroll in their current policies or plans in 2027 unless they make changes during the OEP that begins in January.

Part D prescription drug policies and Medicare Advantage plans could look very different.

Watch For Your Annual Notice Of Change

Insurers and plans must send current beneficiaries an Annual Notice of Change in the mail by the end of September. The ANOC lists every adjustment to a plan or policy for 2027, including premiums, deductibles, copayments, the list of covered drugs and the provider network.

Read the notices thoroughly. I expect many policies and plans will change materially from 2026 to 2027. A beneficiary does not have to do anything if satisfied that current plans and policies will meet their budget and needs for providers and medications.

Expect Major Shifts In Part D Premiums

Expect major changes in Part D prescription drug policies because the premium stabilization subsidy for these policies ends in 2027.

The Inflation Reduction Act of 2022 limited annual out-of-pocket prescription drug spending for each Part D beneficiary to $2,000 in 2025 and $2,100 in 2026. It will be indexed for inflation after 2026. The law also limited annual increases in the monthly premiums to no more than 6%.

Savings from other changes in the law were expected to cover most of the cost of the ceiling on out-of-pocket spending, with insurance companies absorbing the rest of the cost.

But the cost savings to the government were not as high as anticipated, and the cost of the out-of-pocket limits has been higher than projected. Also, insurers had no experience with the........

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