The open enrollment period for Medicare, the federal health insurance program commonly known as the “Red-Blue Card”, for the year 2027 will begin on October 15th. Beneficiaries will have until December 7th to compare and switch their insurance plans for the following year, with the changes taking effect on January 1st, 2027.
The Centers for Medicare and Medicaid Services (CMS) announced on September 28th that the weighted average monthly premium for the 2027 Medicare Advantage plans is expected to decrease from $14.37 in 2026 to $12, a decrease of 16.5%. On the other hand, the average monthly premium for stand-alone prescription drug plans (Part D) is expected to increase from $35.09 to $36, an increase of less than $1.
Regarding Medicare Advantage plans that include prescription drugs, CMS stated that after deducting the MA rebates, the average monthly Part D premium is expected to decrease from $11.32 to $7, a 38% decrease.
CMS Director Mehmet Oz mentioned in a press release that CMS has reduced subsidies to large insurance companies while maintaining stable premiums. He urged beneficiaries to take advantage of the open enrollment period to review their current coverage, compare plans, and choose the one that best fits their needs and budget.
According to CMS data, over 99% of beneficiaries have at least one Medicare Advantage plan to choose from, with 97% having the option of selecting from 10 or more plans. The total number of MA plans nationwide has decreased from 5,553 in 2026 to around 5,532. CMS estimates that approximately eight out of ten MA beneficiaries can stay in their current plans next year with either the same or lower premiums.
For Part D plans, CMS stated that among non-low-income beneficiaries, 88% can choose a basic plan with a monthly premium below $10.30, and 93% can opt for an enhanced plan with premiums below $6.
It is important to note that the figures provided by CMS are average premiums, and actual costs may vary depending on the plan and the location of the beneficiary.
The non-profit healthcare policy research organization KFF, in an analysis released on October 1st, indicated that on average, beneficiaries will have fewer Medicare Advantage plans to choose from in 2027 compared to 2026. Some beneficiaries may need to actively select a new plan if their current plan will no longer be available next year, otherwise, they may be automatically enrolled in the traditional Medicare program operated directly by the federal government.
Beneficiaries can use the “Medicare Plan Finder” tool on Medicare.gov to compare premiums, costs, and benefits of different plans, or they can call the 1-800-MEDICARE hotline for assistance, which operates 24/7 throughout the year. Beneficiaries who wish to keep their current coverage generally do not need to re-enroll.
Individuals with limited income and assets may qualify for Medicare Savings Programs or Extra Help, programs that can help with paying premiums, copayments, and deductibles.
Medicare Advantage (MA) plans are provided by private insurance companies and cover hospital (Part A) and outpatient (Part B) services under Medicare, with many plans also including prescription drug coverage. Part D, on the other hand, is stand-alone prescription drug coverage for Medicare beneficiaries who can opt for it separately.
CMS has announced that the temporary demonstration programs that were previously used to stabilize Part D premiums will be discontinued in 2027 after scaling down in 2026.
KFF highlighted that the benefits, cost-sharing, prescription drug lists, and medical networks of Medicare plans may change annually, but most beneficiaries indicate that they do not compare plans each year.