Medicare · October 2026
What's Changing in Medicare for 2027: A Simple Guide
Medicare Annual Enrollment runs from October 15 to December 7, and any changes you make start January 1, 2027. Here are the biggest changes coming next year, in plain English.
1. The yearly cap on drug costs goes up to $2,400
Since 2025, there has been a limit on how much you pay out of pocket for covered Part D prescriptions in a year. For 2027, that limit rises from $2,100 to $2,400. Once you reach it, you pay nothing more for covered Part D drugs for the rest of the year.
2. Lower prices on 15 more popular drugs
Starting January 1, 2027, Medicare's negotiated prices take effect for 15 more drugs, including Ozempic, Rybelsus and Wegovy, Trelegy Ellipta, Breo Ellipta, Janumet, Tradjenta, Linzess, Xifaxan, Vraylar, Otezla, Ibrance, Xtandi, Pomalyst, Ofev, Calquence, and Austedo. Medicare expects these lower prices to save people about $685 million in out-of-pocket costs. All Medicare drug plans must cover these drugs.
3. Stand-alone drug plan premiums may change
A temporary federal program that helped hold down premiums for stand-alone Part D plans ends after 2026. Some people may pay more for their drug plan in 2027, while others may see little change. This is a big reason to compare plans this year instead of letting yours renew automatically.
4. Medicare Advantage plan ratings are changing
Medicare is updating its Star Ratings to focus more on real health results and patient experience, and less on paperwork. Medicare is also setting clearer rules for the benefit debit cards many Advantage plans offer, such as cards for groceries or over-the-counter items.
What you should do now
- Open your Annual Notice of Change letter from your plan and look for changes to premiums, copays, and your drug list.
- Make a list of your doctors, pharmacy, and every prescription you take.
- Compare plans before December 7. The plan that was best this year may not be best next year.
Want a free plan review? We will compare your options side by side at no cost to you.
Call 313.721.2144Sources: CMS negotiated drug prices fact sheet, CMS 2027 Medicare Advantage and Part D final rule, and Humana Part D changes summary. Part B premiums and deductibles for 2027 had not been announced when this was written. We do not offer every plan available in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.