Medicare Enrollees Review Coverage Changes for 2027 Plans

Millions of Medicare enrollees will review their 2027 coverage options during the annual open enrollment period starting Oct. 15, as changes to Medicare Advantage and prescription drug plans affect costs, benefits, and provider networks.

According to Yahoo Finance, the enrollment window runs through Dec. 7, with changes taking effect Jan. 1. Beneficiaries can switch between traditional Medicare and Medicare Advantage, change Medicare Advantage plans, or select a different Part D prescription drug plan.

Medicare users should examine their Annual Notice of Change letters to identify updates to premiums, deductibles, copayments, coinsurance, benefits, and provider access, according to Yahoo Finance. Some Medicare Advantage plans may reduce extra benefits or adjust cost-sharing structures.

"There are changes beyond premiums underneath the hood, including cost-sharing and coverage of benefits, which means it's important to read the fine print," said Juliette Cubanski, director of the program on Medicare policy at KFF.

Cubanski also noted that many beneficiaries do not compare plans each year. Yahoo Finance reported that about 7 in 10 people with Medicare do not comparison shop during open enrollment.

"Most people stick with the plan that they have from one year to the next unless the plan is withdrawn from the market, or there's a substantial premium change. Because of the complexity of the marketplace and of the decision making, when it comes to comparing all of these different plan options, many people feel overwhelmed and find it's easier just to sit it out," said Juliette Cubanski, director of the program on Medicare policy at KFF.

Medicare Advantage enrollment covers more than half of all Medicare beneficiaries, or about 36 million people, according to Yahoo Finance. Plans may have changes in doctor networks and out-of-network coverage rules depending on whether they are PPO or HMO products.

"Even though average premiums are decreasing, you may have to pay a larger share of the costs when you do need medical care," said Kim Lankford, author of "Medicare 101."

Lankford advised reviewing copayments and other out-of-pocket expenses for expected medical services, hospital stays, and provider choices. The 2027 annual out-of-pocket limit for Medicare Part D prescription drugs will increase to $2,400, according to Tigard Life.