Medicare open enrollment: Common mistakes to avoid for 2027 coverage

Open enrollment for Medicare begins Oct. 15 and runs through Dec. 7, giving beneficiaries time to review their coverage and make changes for 2027. Here’s what to know before choosing a plan that fits your healthcare needs.

What’s new for 2027

Two key components of Medicare are set to undergo significant changes for 2027: prescription drug coverage and Medicare Advantage plans.

Prescription drug prices are changing

The maximum deductible for prescription drugs will be $700, which is $75 more than the 2026 deductible. After the deductible is met, you’ll pay 25% coinsurance for both generic and brand-name drugs until you meet the maximum out-of-pocket spending limit for Part D coverage. For 2027, that amount increases to $2,400 from $2,100 in 2026.

Federal IRA premium subsidies that reduced Medicare Part D (prescription coverage) premiums will end in 2026. As such, you could pay a higher premium for your Part D coverage.

Starting in 2027, 15 medications will have negotiated prices under the Medicare Drug Price Negotiation Program. This includes Ozempic, Rybelsus and Wegovy; Vraylar; and Trelegy Ellipta. The negotiated prices will take effect on Jan. 1, 2027.

A new approach to certain hemp products

Some Medicare beneficiaries may also have access to certain hemp products starting in 2027. Under a new Centers for Medicare & Medicaid Services program, participating healthcare organizations can offer eligible beneficiaries certain federally legal hemp products, such as hemp seed oil, hemp protein powder and hulled hemp seeds. The benefit is not available to everyone on Medicare and will depend on whether a beneficiary is part of a participating program.

One of those programs is the Long-term Enhanced ACO Design Model, which begins in 2027. It is a voluntary program involving certain healthcare organizations that coordinate care for Medicare patients. If a participating organization offers the hemp benefit, eligible patients may be able to receive it at no cost, subject to CMS rules.

Medicare Advantage plans may look different

Medicare Advantage plans will see a 2.48% increase in payments from Medicare in 2027, a smaller increase than in some previous years. That could affect what plans offer, including extra benefits, provider networks and out-of-pocket costs. Some insurers could reduce benefits or increase copays.

Some Medicare Advantage insurers may also limit enrollment in certain areas. It’s not yet clear which insurers will make changes or where. That makes it especially important to review your options during open enrollment and make any changes before Dec. 7.

Already have Medicare Advantage? You’ll have another opportunity to make changes from Jan. 1 through March 31, 2027. During this period, you can switch to another Medicare Advantage plan or return to Original Medicare. Changes generally take effect the first day of the month after you make the change.

Telehealth coverage continues

Medicare beneficiaries can continue using telehealth from home through Dec. 31, 2027. The extension, included in the Consolidated Appropriations Act of 2026, allows Medicare recipients to keep using virtual visits to connect with their doctors from the comfort of their own homes.

Avoid these common mistakes

1. Missing your initial enrollment period

One of the most common Medicare mistakes is waiting too long to enroll. Your Initial Enrollment Period begins three months before you turn 65 and ends three months after your 65th birthday. To find your exact enrollment period, use the Social Security Administration’s Medicare enrollment calculator.

If you or your spouse have health coverage through an employer, you may qualify for a Special Enrollment Period and avoid late-enrollment penalties. You generally can enroll while you or your spouse are still working and covered by the employer’s group health plan, or within eight months after the employment or coverage ends.

If you don’t qualify for a Special Enrollment Period and miss your Initial Enrollment Period, you’ll have to wait for the General Enrollment Period, which runs from Jan. 1 through March 31 each year.

Waiting to enroll can mean paying more for Medicare. If you sign up late for Part B, your monthly premium generally increases by 10% for each full year you went without coverage when you could have enrolled. The higher premium usually continues for as long as you have Part B.

There can also be a late-enrollment penalty for Part D prescription drug coverage. If you go 63 days or more without creditable prescription drug coverage after your Initial Enrollment Period, you may have to pay a penalty for as long as you have Part D.

2. Not reviewing your current plan

If you’re enrolled in a Medicare Advantage or Part D plan, don’t assume your coverage will stay the same from year to year. Use the Open Enrollment period to review your current plan and check for changes to your coverage, costs, benefits and provider network.

Make time to review your Annual Notice of Change, which your plan must send by Sept. 30. It outlines changes to your 2027 premiums, copays, provider networks, benefits and other costs. Look over the notice carefully to see whether your current plan will still meet your needs or whether you should consider other options during open enrollment.

3. Not knowing your plan premiums and deductibles

Premiums, deductibles and other costs for Medicare Advantage (Part C) and Part D plans vary by plan. When comparing your current coverage with other options, make sure you know what you’ll pay for premiums, deductibles, copays and coinsurance.

If you have Original Medicare, most people don’t pay a monthly premium for Part A, which covers hospital care. In 2026, the standard monthly premium for Medicare Part B is $202.90, although people with higher incomes may pay more. The Part A hospital deductible is $1,736 per benefit period, while the Part B deductible is $283 per year. After meeting the Part B deductible, you generally pay 20% of the Medicare-approved amount for covered services.