WASHINGTON (AP) — Open enrollment for Medicare plans begins Thursday and enrollees will face a host of changes that take effect in 2027.
During the enrollment period, which ends Dec. 7, people will have the option to choose between traditional Medicare plans and private Medicare Advantage plans in their area, as well as prescription drug plans. These changes will come into effect on January 1.
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Open enrollment also comes as inflation adds pressure on seniors whose health care costs have risen and the midterm elections are weeks away. Voters have consistently said the cost of living is a major concern heading into the election.
The Medicare enrollment period also comes as the Social Security Administration announced Wednesday that the annual cost-of-living adjustment for seniors and people with disabilities will increase 3.6% starting in 2027, translating into an extra $75 per month for the nearly 72 million people who receive monthly Social Security benefits and about 7.3 million beneficiaries who receive Supplemental Security Income.
New changes to Medicare coming in 2027 include higher Part D out-of-pocket caps, an end to temporary federal Part D premium subsidies, and new drug price negotiations.
Here are some of the most important changes.
Medicare Part D
The annual out-of-pocket limit for Medicare Part D drugs will increase to $2,400 from $2,100 in 2026, and the standard deductible will increase from $615 to $700.
The temporary Part D premium subsidy will also end prematurely.
LEARN MORE: This Medicare Part D subsidy expires. We answered your questions
The Trump administration entered into a temporary Medicare Part D subsidy program at the end of the year that helped offset premiums.
It was initially implemented by former President Joe Biden’s administration in 2024 to reduce patients’ Medicare Part D prescription drug costs in response to the effects of the Inflation Reduction Act of 2022.
The Centers for Medicare & Medicaid Services has only modest price increases for most people. CMS did not respond to an Associated Press request for comment.
Drug price negotiations
The new Medicare-negotiated prices, part of a Biden-era law allowing haggling for Medicare, will take effect for 15 drugs, including the weight-loss and diabetes drugs Ozempic, Rybelsus and Wegovy.
Additionally, Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, Calquence, Austedo/Austedo XR, Breo Ellipta, Tradjenta, Xifaxan, Vraylar, Janumet/Janumet
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CMS expects the change to reduce prescription drug coverage for Medicare enrollees by $685 million in 2027.
Nancy LeaMond, AARP’s executive vice president and director of advocacy, said in a statement that “higher health care costs make 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 said.
Other promises from the Trump administration
Along with these changes, President Donald Trump has made a series of promises to Medicare enrollees and retirees in recent weeks.
Last week, Trump said his administration would make one-time payments of $90 per person in October to help more than 20 million Medicare enrollees — less than a third of enrollees — pay their Part B premiums. That will cost about $2 billion.
LEARN MORE: Trump’s $90 Medicare rebate is rolling out, but millions aren’t eligible. Critics see it as a political stunt
Not eligible are approximately 35 million Medicare Advantage enrollees, millions of other people with disabilities, and low-income Medicare beneficiaries.
According to the CMS website, eligible recipients will receive a $90 rebate this month, with most receiving direct deposit. Others will receive a paper check from the Treasury Department later in October.
Trump also recently announced that about a million people would receive $500 reduction checks for Affordable Care Act premiums.
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