2027 looks to be another year of change! Medicare Annual Enrollment Period (AEP) is October 15 thru December 7. This applies whether you enrolled in Medicare this year or have been a long-time beneficiary.
October 15- December 7 Each year people currently enrolled in Medicare (even if they enrolled earlier this year) have an opportunity to change some or all of their Medicare status.
One of the biggest changes for 2027 will be the premium for Medicare prescription drug plans. Thru 2026, insurance companies that offer prescription drug plans have been subsidized by the Federal government, allowing them to reduce the monthly premium. That subsidy has not been renewed. We believe there will be some companies that will exit the market and certainly premiums will increase but we won’t know by how much until October 1.
Medicare Advantage Plans are also changing. Please watch out for the Annual Notice of Change (ANOC) letters that must arrive by October 2 for people that are enrolled in Medicare Advantage or Prescription Drug plans. It may be that your Medicare Advantage plan will not be offered in your area for 2027. Or the max out of pocket amounts, co-pays and formulary for medications are changing. The ANOC letter only lists changes, not if a particular service or coverage is staying the same.
The max out of pocket for prescription drug plan co-pays for 2027 will be capped at $2400. This amount does not include the monthly premium that may be charged to enroll in the plan. As consumers, we need to understand the monthly premium, the co-pay (is it a percentage of the retail cost of the medication or a straight dollar amount co-pay?) and the formulary. The formulary is the list of medications included covered by a particular plan. Each plan is different – even from the same insurance company. For 2027, it is important to review the medications you are on (have they changed during the year?) and the formulary for your current plan versus what it will be for next year. The prescription drug portion of a Medicare Advantage plan works the same way except it doesn’t have a premium.
This time of year presents the greatest opportunity for Medicare enrollees to make a change. There are other types of enrollment periods throughout the year that are circumstance driven and each has specific rules.
What can you do during AEP? You can enroll in a Medicare Advantage plan; you can switch from one Medicare Advantage Plan to another; you can drop your Medicare Advantage Plan and keep Original Medicare (Parts A & B). If the Medicare Advantage Plan you are on will not be offered for 2027, you can choose a new plan or you could be offered guaranteed issue entry to a Medicare supplement (aka Medigap plan) regardless of your current health. If you are already enrolled in a Medicare supplement, you can drop that and move to a Medicare Advantage plan or enroll in a different Medicare supplement (aka Medigap) under certain circumstances. Reviewing your options is the best method to weigh cost benefit.
Not announced yet, but soon, we will have information on the Part B premium for 2027, the Part B deductible, change to IRMAA (Income Related Monthly Adjustment Amount) as well as updates to the Part A deductibles. If choosing a course of action seems daunting, that’s when to call on an expert. Working with an insurance consultant (broker) who will review your current enrollments, discuss what is working (and what isn’t), take all your doctor and medication information and provide options for you to select from could be a time and cost saver.
Mary Hansen is a licensed insurance consultant (broker) with American Republic Insurance Services. She looks forward to answering your questions. You can submit them to her website: maryhansenmedicare.com Phone: 630.286.9160 You can also find her on Facebook https://www.facebook.com/foxvalleymedicarehelp
Medicare 2027 Update Meetings
Seminar will Cover;
Overview of What Medicare Covers and Does Not Cover
- Find out Changes to Medicare Prescription Drug Plans
- Learn how to Avoid the Penalties Associated with Medicare
- Learn the difference between Medicare Supplements and Medicare Advantage Plans
Heritage Woods of Batavia 1079 E. Wilson St. Batavia 60510 (enter through Annex 2nd Floor)
Thursday Oct. 15th 2:00pm
Tuesday Oct. 27th 6:30pm
Town & Country Public Library 320 E. North St. Elburn 60119
Thursday Oct. 8th 6:00pm
Sycamore Public Library 103 E. State St. Sycamore 60178
Wednesday Oct. 14th 6:00pm
Please RSVP by calling or text 630-286-9160
Limited Seating Available
Any content, resident submissions, guest columns, advertisements, and advertorials are not necessarily endorsed by or represent the views of Best Version Media LLC (BVM) or any municipality, homeowners associations, businesses, or organizations that this publication serves. BVM is not responsible for the reliability, suitability, or timeliness of any content submitted, inclusive of materials generated or composed through artificial intelligence (AI). All content submitted is done so at the sole discretion of the submitting party.
