Signing Up for Medicare: What You Need to Know

This article was written by Jonnie Korinko, MSRC, RRT, RRT-ACCS.

Medicare Open Enrollment is a good time to review your health plan. Each year, Medicare updates its plans. These changes may affect your coverage and what you pay.

Before Open Enrollment starts, your plan will send you a notice about any changes. Your costs, doctors, pharmacies, and covered services may change. Read the notice to make sure the plan still works for you.

Open Enrollment runs from October 15 through December 7. During this time, you can join, change, or leave a Medicare Advantage plan or drug plan. You can also switch to Original Medicare. Your new coverage starts January 1, 2027.

Key Medicare Changes for 2027

Below are some important Medicare changes for 2027. They may affect your costs, covered care, and where you can receive care.

Changes to Monthly Costs and Deductibles

The Part A deductible will increase from $1,716 to $1,736 in 2027. This is the amount you pay before Medicare starts paying for your hospital care. Your monthly Part B cost is based on your income. In 2027, it will range from $202.90 to $689.90. The Part B deductible will increase to $283. This is the amount you pay before Medicare starts paying for covered medical care.

Prescription Drug Coverage Changes

Private insurance companies sell Medicare Part D plans. Each plan has its own monthly cost and list of covered drugs. In 2027, plans may charge a deductible of up to $700, up from $615 in 2026. Some plans have no deductible.

After you pay your deductible, you may still pay part of your medicine costs. In 2027, you will pay no more than $2,400 for covered medicines. Once you reach this limit, your Part D plan will pay the full cost for the rest of the year.

Steps You Should Take

Even if you are happy with your insurance coverage, it is important to look over the documents sent to you outlining the exact coverage and cost changes for the year.

• It is important to look over any changes to coverage for 2027. If you already have a Part D plan or an Advantage Plan, make sure to review your Annual Notice of Change document. Each year, medication formularies, provider networks, copays, and premiums can change.
• This document will outline cost and coverage changes for your plan. If you have Original Medicare, look over the Medicare & You handbook mailed to you by the Centers for Medicare & Medicaid Services.

Compare plans in your area to make the best choice. Look at premiums, out-of-pocket costs, and the providers covered. If you have trouble finding local plans, check out these resources:

• Medicare Plan Finder
• Your local State Health Insurance Assistance Program (SHIP)
• Medicare Rights Counseling
• Patient Advocate Foundation Case Management Services

Look over the covered medications on your Part D plan. Look at what tier they're on so that you know what the out-of-pocket cost will be.

• If your medicines cost a lot at the beginning of the year, ask your Part D plan about the Medicare Prescription Payment Plan. It's free and may help you save money early in the year.

Open enrollment is the best time to make sure your insurance covers your health care needs and fits your budget. Your coverage may change each year, so reviewing your options can help you understand it better.