Your Medicare coverage is important for keeping you healthy as you age. Your insurance should also protect your budget from unexpected medical expenses. Juggling these two things can be challenging, but planning and preparation can keep both needs aligned.
When thinking about Medicare Supplement changes for 2027, it’s good to understand what you need from a Medigap plan and how Part D coverage and costs will be changing.
Compare Plans with a Licensed AgentWhat’s changing for 2027 Medicare Part D?
Medicare policies are tweaked a little bit each year, with costs typically rising. Fortunately, limits on out-of-pocket maximums, premiums, and deductibles set by the Centers for Medicare and Medicaid Services (CMS) and the Inflation Reduction Act have helped stem the tide.
Not all information on 2027 Part D plan costs has been released yet. Some numbers, like your exact plan premium, won’t be out until this fall. But when you receive your Annual Notice of Change (ANOC) in September, review your Medicare Part D changes in 2027 to:
- Check your monthly premiums,
- Make sure your prescriptions are still covered under your plan,
- Look for the copays for your covered drugs to see if they have changed,
- Make sure your pharmacy is still in your plan’s network.
And some cost estimates help you plan for 2027. For instance, the Part D deductible (the amount you pay before your plan starts covering its share), which was $615 in 2026, will be $700 in 2027. The out-of-pocket maximum, which was $2,100 in 2026, will increase to $2,400 in 2027.
As CMS releases additional information on Part D for 2027, you can look to United Medicare Advisors as a trusted source to track and update changes.
Will Medicare Part D premiums change in 2027?
Medicare Part D premiums are expected to increase in 2027, much like all other healthcare premiums.
The Part D national base premium in 2025 was $36.78 and increased to $38.99 in 2026. This figure is used to calculate the penalty if a beneficiary doesn’t enroll in a Part D plan when they first enroll in Medicare. This number can’t increase by more than 6% a year, and it’s what some private insurance carriers use as a starting point to set their monthly premiums.
Though the average Part D premium dropped from 2025 to 2026 ($34.50), experts anticipate it will rise this year. The average over the past couple of years decreased, in part because of the abundance of $0-premium and low-premium Part D plans. But with their costs rising, carriers are expected to pull some of these plans from the market in 2027. This may increase the average cost of premiums next year.
People with higher incomes should also be aware of the increase in the Income-Related Monthly Adjustment (IRMAA) for 2027. This is a surcharge added to monthly premiums for individuals who have a modified adjusted gross income greater than $112,000 a year and couples making more than $224,000 annually. In 2026, IRMAA charges ranged from $14.50 to $91 a month. In 2027, IRMAA charges are estimated to be between $15.40 and $96.40 plus your premium.
If you want to continue receiving updates about all of the potential changes to your 2027 Medicare Supplement and Part D plan, sign up for the United Medicare Advisors newsletter, a trusted source for the most recent Medicare changes.
What about Medicare Part D drug price changes in 2027?
Another way insurers are managing to make up for their increasing costs is by utilizing coinsurance. Instead of having copays (like $35 for insulin, which is set by CMS), you may notice you’re paying coinsurance for more of your drugs. Carriers often use coinsurance (typically 25%) for higher-priced and specialty drugs. So, if you need to take a medication that costs $600 per month, with 25% coinsurance you would be responsible for $150 of that until you hit your out-of-pocket maximum. The higher the tier your drug is in, the more you’ll pay in coinsurance.
CMS has helped drop the price of some medications through the Medicare Drug Price Negotiation Program, where the department negotiates directly with drug manufacturers. In 2026, the price of 10 name-brand medications was lowered for Medicare beneficiaries through the program. In 2027, another 15 will drop from 38% to 85%. These drugs are:
- Ozempic, Wegovy, and Rybelsus – $279
- Trelegy Ellipta – $175
- Xtandi – $7,004
- Pomalyst – $8,650
- Ofev – $6,350
- Ibrance – $7,871
- Linzess – $136
- Calquence – $8,600
- Austedo – $4,093
- Breo Ellipta – $67
- Xifaxan – $1,000
- Vraylar – $770
- Tradjenta – $78
- Janumet – $50
- Otezla – $1,650
Important note: GLP-1s have only been negotiated for Medicare beneficiaries to treat diabetes, heart disease, and heart disease with obesity. These drugs are increasingly being used solely for weight loss, and CMS is currently offering a Medicare GLP-1 Bridge pilot program that reduces the price of drugs including Wegovy and Zepbound to $50 a month through the end of 2027.
Should Medigap holders review their Part D plan before 2027?
You should review your Part D benefits every year. Look for your ANOC in the mail and look it over to see any plan changes for 2027. If you review your plan and have questions, or think another plan may be a better fit for your health or financial needs, you can reach out to a licensed United Medicare Advisors agent who can help you compare Part D plans.
When can you change your Medicare Supplement plan?
You can change your Medicare Supplement plan at any time throughout the year, but if you do it outside of your Medigap Open Enrollment period or through other guaranteed issue rights, you may need to go through an underwriting process. During underwriting, you will answer questions about your health, which can impact the cost of your new plan.
How UMA helps Medigap holders navigate Medicare changes every year
It can be daunting to go through the Medicare enrollment process each year. Small changes in cost and drug formularies can add up to big hits to your budget. If you don’t feel comfortable comparing plans or don’t know where to start, reach out to United Medicare Advisors, where a licensed agent can assist you.
