From Straight Arrow · · 2m
Medicare Open Enrollment Begins
Millions face fewer Medicare plans and higher costs as enrollment starts.
In brief
Millions face fewer Medicare plans and higher costs as enrollment starts. Nearly 3.2 million Medicare Advantage plan enrollees must switch coverage in 2027 due to discontinued plans, with rising out-of-pocket costs and prescription drug expenses. Originally reported by Straight Arrow.
Medicare Open Enrollment Starts
Medicare open enrollment for adults 65 and older began Thursday with millions facing fewer coverage options as private insurers discontinue Medicare Advantage plans.
3.2 Million Plan Discontinuations
Nearly 3.2 million people enrolled in individual Medicare Advantage plans will need new coverage for 2027 because their existing plans are being discontinued.
Rural Counties Most Affected
KFF estimated 638,000 Medicare beneficiaries in nearly 200 rural counties will have no Medicare Advantage plans available in 2027, up from 399,000 people in 123 counties this year.
Average Plans Drop to 28
The average beneficiary will have 28 Medicare Advantage plans with prescription drug coverage next year, down from 36 in 2024.
Premiums May Decline
CMS projects average monthly Medicare Advantage premiums will decline to approximately $12 for 2027, though some plans may increase by 23% to $14.80.
Out-of-Pocket Costs Rise
The average maximum out-of-pocket limit for in-network medical services will reach $6,603, up 9% from this year, affecting about 70% of beneficiaries.
Prescription Drug Costs Increase
The standard Part D deductible rises from $615 to $700, and the annual out-of-pocket cap increases from $2,100 to $2,400 for prescription drugs.
No $0 Monthly Premiums
No stand-alone Medicare Part D plans will offer a $0 monthly premium in 2027 for beneficiaries without low-income subsidies.
ACA Enrollment Drops 18%
KFF reported enrollment fell from 25.2 million in June 2025 to 20.5 million in June 2026, an 18% decline following the expiration of enhanced ACA premium tax credits.
Direct Pay Care Grows
More than 3,600 direct primary care practices operate nationwide in early 2025, reflecting annual growth of more than 19% since 2022.
Beware Enrollment Scams
Scammers target Medicare beneficiaries during open enrollment with fraudulent communications and offers requesting personal information.
Enrollment Deadline
Medicare open enrollment continues through December 7, with beneficiaries needing to review notices and compare replacement coverage.
What Happens Next
Beneficiaries must switch plans by December 7 to avoid higher costs and limited coverage options for 2027.
The takeaway
Nearly 3.2 million Medicare Advantage plan enrollees must switch coverage in 2027 due to discontinued plans, with rising out-of-pocket costs and prescription drug expenses.
