As we enter the fall season, and hopefully cooler weather Medicare open enrollment is just ahead. Medicare Open enrollment starts October 15 so we wanted to provide you with a preview of what changes may occur with Medicare next year.
Every year Medicare adjusts its costs and rules, and 2027 is no different. Some of the numbers are already locked in. Others won’t be official until CMS makes its fall announcement in November. Here’s a breakdown of what we know so far, so you’re not caught off guard when Open Enrollment starts.
Part B premiums and deductible: still a waiting game
The standard Part B premium for 2026 is $202.90 a month, with a $283 deductible. For 2027, CMS hasn’t released the final numbers yet. Early estimates from the Medicare Trustees Report put the premium around $209.50 a month, a modest increase compared to recent years. The deductible is projected to land somewhere between $292 and $310.
Nothing here is final. CMS typically confirms Part B premiums, deductibles, and income brackets (IRMAA) in November. We’ll update clients as soon as the real numbers come out.
Part D Drug Plan changes: some good news, some bad news
Part D is seeing more concrete changes for 2027, and it’s a mixed bag.
The out-of-pocket cap is going up. Once you hit $2,400 in covered drug costs in 2027, you pay nothing more for the rest of the year. That’s up from $2,100 in 2026. This cap, along with the elimination of the old “donut hole,” came from the Inflation Reduction Act and is now fully in place.
The deductible is also going up. The standard Part D deductible rises to $700 in 2027, up from $615 in 2026. That means you’ll pay more out of pocket before your coverage kicks in.
Premiums could rise for standalone Part D plans. For the past two years, a temporary CMS program called the Part D Premium Stabilization Demonstration helped keep monthly premiums lower for standalone drug plans. That program ends after 2026. Starting in January 2027, insurers will set premiums without that support. CMS expects most people will see an increase of $10 or less a month, though it varies by plan and could be higher in some cases. Some plans may actually hold steady or drop.
The bottom line: your specific premium depends entirely on your plan and zip code. This is exactly why it pays to compare plans during Open Enrollment instead of letting your current plan auto-renew.
Medicare Advantage: more funding, but changes to watch
CMS approved a 2.48% average payment increase to Medicare Advantage plans for 2027, worth more than $13 billion industry-wide. That’s a bigger bump than insurers expected, and it should help most Advantage plans keep their current benefits intact.
That said, not every plan will look the same next year. Some insurers may pull plans out of less profitable markets, shrink provider networks, or scale back extra perks like dental coverage, gym memberships, or healthy food allowances, especially on $0-premium plans. None of this is guaranteed, but we will keep you informed as we receive the plan designs in October for 2027 plans.
Star Ratings are getting an overhaul, and it could shake up your plan
CMS also finalized a major rework of the Star Ratings system, the 1-to-5-star scale that grades Medicare Advantage and Part D plans on quality. This matters more than it sounds like it should, because Star Ratings drive the bonus payments plans get from CMS, and those bonus payments are what fund a lot of the extra benefits you see, like dental, vision, or gym memberships.
What this means for you: more plans are expected to qualify for bonus payments under the new rules, which is generally good news for keeping extra benefits funded. But it also means some of the consumer-protection measures, like how fast a plan handles your appeal or how well their call center serves you, will carry less weight in the rating you see. A plan’s star rating in 2027 may not tell the same story it used to, so it’s worth looking past the star count and asking your advisor if you have questions.
We’re here to help
Medicare rules change every year, and it’s a lot to keep track of on your own. If you want a second set of eyes on your coverage before Open Enrollment closes, reach out to your Medicare Support Services advisor. We’ll walk through your options and make sure you’re not paying for coverage you don’t need, or missing coverage you do. You can contact us at 940-382-4700 or email Cassondra@icusa-tx.com
This article reflects the most current information available as of publication. Final 2027 Part B premiums, deductibles, and IRMAA brackets will be confirmed by CMS in November 2026.
