Medicare Costs in 2027: 5 Changes Every Beneficiary Should Know

Medicare is making several important changes in 2027 that could affect your monthly bills, drug costs and coverage options. If you have Medicare Advantage or a Part D drug plan, you’ll get an Annual Notice of Change letter by the end of September explaining exactly how your plan is changing next year.

Most people on Medicare also receive Social Security, so many premium increases will be taken directly out of your monthly Social Security check. Experts estimate the 2027 cost-of-living adjustment (COLA) for Social Security could be around 3.6%, or about $70 more per month, which may help offset some of the higher Medicare costs.

The good news: you have time to review your options and possibly save money. Medicare Open Enrollment runs from October 15 to December 7, 2026. During this window, you can:

• Switch between Original (Traditional) Medicare and Medicare Advantage

• Join, switch or drop a Part D prescription drug plan

• Change to a plan with lower premiums, better drug coverage or doctors you prefer

Here are the five biggest Medicare changes coming in 2027, explained in plain language, plus links to official resources where you can check your own costs and compare plans.

1. Part B Premiums and Deductible Are Going Up

What’s changing:
The monthly premium for Medicare Part B (which covers doctor visits, outpatient care, labs and some preventive services) is expected to rise in 2027.

• Estimated 2027 Part B premium: $209.50/month, up from $202.90 in 2026

• Estimated 2027 Part B deductible: $292/year, up from $283

Who pays this:

• Everyone with Medicare Part B, including people in Medicare Advantage plans, pays the Part B premium.

• If your income is higher (above $109,000 for single filers or $218,000 for joint filers), you may pay an extra amount called IRMAA on top of the standard premium.

• If your income is limited, you might qualify for help through a Medicare Savings Program that can lower or even pay your Part B premium.

Where to learn more:

• Medicare Part B costs overview (medicare.gov)

• Medicare Savings Programs (medicare.gov)

2. Part D Drug Plan Premiums May Rise as a Federal Subsidy Ends

What’s changing:
Medicare Part D helps pay for prescription drugs. In 2027:

• The national base Part D premium is set at $41.33/month, up from $38.99 in 2026. Your actual plan premium may be higher or lower depending on where you live and which plan you choose.

• The out-of-pocket cap for Part D will increase from $2,100 to $2,400 in 2027. Once you hit that cap, Medicare covers 100% of covered drug costs for the rest of the year.

Big reason premiums may jump:
The federal government is ending a temporary subsidy program (the Part D Premium Stabilization Demonstration) after 2026. This program helped keep stand-alone Part D plan premiums lower while insurers adjusted to new rules under the Inflation Reduction Act.

• The subsidy saved beneficiaries an average of about $16/month in 2026, according to a federal advisory commission.

• Without it, some people could see larger premium increases in 2027, especially if they stay in the same plan without shopping around.

Who is most affected:
People with stand-alone Part D plans (not Medicare Advantage plans with drug coverage) are likely to see the biggest impact, though all drug plans may adjust prices.

Where to learn more and compare plans:

• Medicare Part D costs (medicare.gov)

• Medicare Plan Finder – compare drug plans (medicare.gov)

3. Some Insurers Are Dropping Medicare Advantage Plans

What’s changing:
Medicare Advantage (Part C) plans are offered by private insurance companies and often include extra benefits like dental, vision, hearing and fitness memberships. But not all plans are continuing into 2027.

Some insurers are reducing or exiting certain markets. For example, Humana recently announced it will not renew plans for about 600,000 beneficiaries in 2027, meaning those members must choose a new plan.

What you should do:
Even if you like your current plan, don’t assume it will stay the same. Before December 7:

• Check whether your Medicare Advantage plan is still being offered in 2027.

• Review changes to premiums, deductibles, copays and extra benefits (dental, vision, hearing, transportation, etc.).

• Call your doctors’ offices to confirm they’ll still be in network next year.

• If your plan is ending or no longer fits your needs, use Open Enrollment to switch to a different Medicare Advantage plan or back to Original Medicare with a Part D plan.

Free help is available:

• State Health Insurance Assistance Program (SHIP) – free local counseling (medicare.gov)

• Medicare Advantage plans overview (medicare.gov)

4. Lower Prices for 19 Brand-Name Drugs Thanks to Federal Negotiation

What’s changing:
Under the Inflation Reduction Act, Medicare is now negotiating prices directly with drug companies for certain high-cost medications. The first 10 negotiated drugs started in 2026; a second group of 19 brand-name drugs will have new, lower Medicare prices in 2027.

Some of the drugs affected include:

• Ozempic, Rybelsus, Wegovy (GLP-1 drugs for diabetes and weight loss)

• Trelegy Ellipta, Breo Ellipta (inhalers for asthma/COPD)

• Xtandi (prostate cancer)

• Ibrance (breast cancer)

• Ofev (certain lung diseases)

• Linzess (IBS with constipation)

• Tradjenta, Janumet, Janumet XR (type 2 diabetes)

• Vraylar (depression)

• Otezla (psoriasis and related conditions)

• …and several others

Why this matters:
For some of these drugs, including Ozempic and Wegovy, negotiated prices are expected to be about 70% lower than current list prices for people on Medicare, which can mean hundreds of dollars saved each month.

Where to check your drug costs:

• Medicare drug price negotiation program (medicare.gov)

• Medicare Plan Finder – see your specific drug costs (medicare.gov)

5. Cheaper Weight-Loss Shots (GLP-1s) Continue Through 2027

What’s changing:
Medicare now offers a special pilot program called the GLP-1 Bridge that lets eligible beneficiaries get certain weight-loss medications for a flat $50 per month.

• Covered drugs include Wegovy, Zepbound KwikPen and Foundayo.

• The program started in July 2026 and runs through December 31, 2027. CMS has not announced what will happen after that.

These medications often cost $1,000+ per month without coverage, so the $50 copay can be a huge savings.

Who qualifies for the $50 price?
You must have Medicare Part D and meet one of these criteria:

• BMI ≥ 35, or

• BMI 30–34.9 plus a heart condition, prior heart attack or stroke, peripheral artery disease, or high blood pressure.

Important limitations:

• If your GLP-1 drug is already covered under Part D for another reason (for example, for type 2 diabetes), you cannot switch to the $50 price.

• The $50 copay does not count toward your annual Part D out-of-pocket cap, so plan accordingly.

Where to learn more:

• Medicare coverage of weight-loss drugs (medicare.gov)

• Talk to your doctor or pharmacist about whether you qualify for the GLP-1 Bridge program.

How to Get Ready for 2027 (Simple Checklist)

You don’t have to navigate these changes alone. Here’s a quick, friendly action plan:

1. Watch your mail in September for the Annual Notice of Change from your Medicare Advantage or Part D plan. Read it carefully.

2. List your medications and note any changes in cost or coverage for 2027.

3. Use the Medicare Plan Finder to compare plans side by side:

   • Medicare Plan Finder (medicare.gov)

4. Check if your doctors and pharmacies are still in network for your current or new plan.

5. Get free, unbiased help if you’re confused:

   • Find your local SHIP counselor (medicare.gov)

6. Make any changes by December 7, 2026 so your new coverage starts January 1, 2027.

Taking a little time now during Open Enrollment can help you avoid surprise bills and possibly save hundreds (or even thousands) in 2027.

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