Medicare Open Enrollment is approaching, which means now is a good time to review your Medicare Part D or Medicare Advantage coverage and understand what may be changing in 2027.
Each fall, Medicare plans send an Annual Notice of Change (ANOC) outlining changes taking effect in January. This notice can include updates to premiums, prescription drug coverage, cost sharing, pharmacy networks, and other plan details.
Even if you’re satisfied with your current coverage, taking a few minutes to review these changes can help you decide whether your plan still fits your needs and avoid unexpected costs in the year ahead.
What Is Changing with Medicare Part D in 2027?
For 2027, the Medicare Part D national base beneficiary premium will increase from $38.99 in 2026 to $41.33, a 6% increase.
That does not mean every Medicare Part D enrollee will pay $41.33 per month. The national base beneficiary premium is used to calculate plan-specific basic Part D premiums. Your actual premium can vary depending on your plan and other factors.
Because premiums and other plan details can change from one year to the next, reviewing your individual plan documents is more useful than focusing on the national figure alone.
What Is the Medicare Annual Notice of Change?
If you are enrolled in a Medicare plan, your plan sends you an Annual Notice of Change each fall. The document explains changes to your coverage, costs, and other plan provisions that will take effect the following January.
It can be tempting to assume that the coverage that worked for you in 2026 will continue to be the right fit in 2027. But Medicare Advantage and Part D plans can make changes each year. Your Annual Notice of Change lets you identify those differences before Open Enrollment ends.
What Should You Review in Your Medicare Part D Plan for 2027?
When your Annual Notice of Change arrives, pay particular attention to these four areas:
-
Your Monthly Premium
Compare your current 2026 monthly premium with the amount your plan will charge in 2027.
A premium increase is worth noting, but premium alone does not tell you which plan will be the most cost-effective for you.
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Your Prescription Medications
Confirm that each medication you currently take will remain on your plan’s formulary in 2027.
Also look for changes involving:
- Drug tiers
- Prior authorization requirements
- Step therapy
- Quantity limits
- Copays or coinsurance
A plan that looks similar on the surface could affect you differently if the coverage for one of your regular prescriptions’ changes.
-
Your Preferred Pharmacy
Make sure the pharmacy you prefer to use will remain in your plan’s network for 2027.
Where applicable, also determine whether it will continue to qualify as a preferred-cost pharmacy. Network and preferred-pharmacy changes can affect what you pay for prescriptions.
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Your Estimated Total Annual Costs
Don’t evaluate a Medicare Part D plan based solely on its monthly premium.
Instead, consider the combination of:
- Monthly premiums
- Deductibles
- Prescription copays
- Coinsurance
- Expected medication costs
Looking at the overall picture can give you a more realistic sense of what your coverage may cost throughout the year.
Important 2027 Medicare Open Enrollment Dates
September 2026: Watch for your plan’s Annual Notice of Change and review changes for the coming year.
October 15, 2026: Medicare Open Enrollment begins.
December 7, 2026: Medicare Open Enrollment ends.
January 1, 2027: Coverage changes made during Open Enrollment generally take effect.
Frequently Asked Questions About Medicare Part D in 2027
What is changing with Medicare Part D in 2027?
For 2027, the Medicare Part D national base beneficiary premium will increase to $41.33, up from $38.99 in 2026, a 6% increase.
Individual Part D and Medicare Advantage plans may also change their premiums, prescription drug formularies, cost-sharing requirements, and pharmacy networks for 2027.
What is the Medicare Part D premium for 2027?
The Medicare Part D national base beneficiary premium is $41.33 for 2027. However, this is not necessarily the monthly premium you will pay.
Actual Medicare Part D premiums vary by plan and can be higher or lower than the national base beneficiary premium. Your individual costs can also depend on factors such as the plan you select and, for some beneficiaries, income-related adjustments.
When is Medicare Open Enrollment for 2027 coverage?
Medicare Open Enrollment runs from October 15 through December 7, 2026. During this period, Medicare beneficiaries can review their existing coverage and make eligible changes for the coming year.
Changes made during Medicare Open Enrollment generally take effect January 1, 2027.
What should I review in my Medicare Annual Notice of Change?
Your Medicare Annual Notice of Change (ANOC) explains how your current plan’s coverage and costs will change in the coming year. When reviewing your notice for 2027, pay particular attention to:
- Your monthly premium and deductible
- Whether your prescription medications remain on the plan’s formulary
- Changes to prescription drug tiers, copays, or coinsurance
- Prior authorization, step therapy, or quantity-limit requirements
- Whether your preferred pharmacy remains in-network or preferred-cost
- Your estimated total annual costs based on the medications you expect to take
Do I need to change my Medicare Part D plan every year?
No. You do not necessarily need to change your Medicare Part D plan every year. However, reviewing your coverage annually is important because Part D and Medicare Advantage plans can change their costs, covered medications, pharmacy networks, and other provisions from one year to the next.
How can Medicare Part D formulary changes affect my prescriptions?
A Medicare Part D formulary is the list of prescription drugs covered by a plan. Changes to that formulary can affect whether a medication is covered, the tier it falls into, what you pay for it, or whether additional requirements apply.
Before choosing to keep or change coverage for 2027, check each prescription you currently take against your plan’s updated formulary. Pay attention not only to whether the medication is listed, but also to its tier and any prior authorization, step therapy, or quantity-limit requirements.
Why should Medicare planning be part of a broader retirement plan?
Healthcare expenses can be a major part of retirement spending. Changes to Medicare premiums, prescription drug costs, and out-of-pocket expenses can therefore affect more than healthcare coverage alone.
Reviewing Medicare decisions alongside your broader financial plan can help you better understand how healthcare expenses fit within your expected retirement income, cash flow, and long-term financial needs.
How Mission Wealth Can Help with Your 2027 Medicare Review
Healthcare coverage is an important part of a broader financial plan, particularly as you prepare for or navigate retirement.
If you are a Mission Wealth client and would like professional assistance reviewing your Medicare options for 2027, please contact your Mission Wealth Advisor. Our Risk Management team can coordinate a review discussion with a licensed Medicare agent who can help you evaluate your available choices.
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