Every fall, Medicare’s Open Enrollment Period gives you a chance to review your health and prescription drug coverage. From October 15 through December 7, 2026, you can make changes to your coverage for 2027.
At Glass Financial Advisors, we believe healthcare is a crucial part of your financial plan. Understanding how Medicare fits into your overall retirement strategy helps ensure your coverage and costs stay aligned with the life you want to live.
A plan that worked well this year may change its premiums, drug coverage, provider network, or other benefits next year. If you take several prescriptions, have preferred doctors or hospitals, or travel frequently, reviewing those details becomes even more important.
What's New for 2027
(Projections subject to change)
1. Part B Premium & Deductible Increases
• The standard Part B premium is projected to rise to $209.50/month in 2026.
• The annual deductible for Part B is expected to increase from $283 to $292.
2. Higher Part D Costs & Structure Changes
• Part D premiums are likely to increase to reflect rising healthcare costs.
• The Part D deductible is expected to climb to approximately $700 before entering the coinsurance stage.
• The out-of-pocket cap for prescription drug costs under Part D is also expected to increase to $2,400.
• *these are projections and are subject to change
3. New income limits for IRMAA (Income-Related Monthly Adjustment Amount)
• When your adjusted gross income rises above certain limits, Medicare may add on a surcharge to your standard premium. This surcharge is known as the income-related monthly adjustment amount, or IRMAA.
• IRMAA surcharges are based on income that was reported two years earlier. For 2027, IRMAA surcharge amounts will be based on 2025 Modified Adjusted Gross Income (MAGI).
• The Planning Trap: IRMAA brackets are strict cliffs. Crossing a tier by even $1 can result in thousands of dollars in annual premium surcharges per couple.
4. Negotiated Drug Pricing (“Maximum Fair Prices”)
• Medicare will begin to implement price negotiation for select high-cost brand name medications. Which means that for some Part D drugs, the amount Medicare will pay may be limited.
• An individual’s savings depend on their medication and plan.
5. Reduced Medicare Advantage & Medigap Options
• Revised Medicare Advantage and Medigap options in certain areas.
• Many insurers are trimming Medicare Advantage Options for 2027.
*these are subject to change
What These Changes Mean for Retirement Planning
• Clients may need to adjust their budgets because of the increasing costs of higher premiums, deductibles, and drug prices.
• Those near IRMAA thresholds should be cognizant of incremental income moves that could push them into higher surcharge tiers.
• The changes add urgency to tax- and income-planning strategies (e.g., timing Roth conversions, charitable distributions, or capital gains).
• These changes make proper planning even more important.
Medicare Missteps to Avoid
Assuming you can buy Medigap without health questions at any time
Your one-time federal Medigap Open Enrollment Period generally lasts six months, starting when you are 65 or older and enrolled in Part B. During that time, you can buy any Medigap policy sold in your state without medical underwriting.
After that window, an insurer may require underwriting unless you qualify for a guaranteed-issue right or have other protections under state law. Rules can vary, so check before changing or dropping a policy.
Letting Your Part D Plan Renew Automatically
Medicare Part D, which is prescription drug coverage, updates annually. Your plan may change its premium, deductible, pharmacy network, or coverage for specific prescriptions. Review the plan’s Annual Notice of Change and compare your medications and preferred pharmacies with the options available for 2027.
Overlooking the Details in Your Medicare Advantage plan
Medicare Advantage plans can include provider and service-area restrictions. Changes in network coverage or benefit structure can affect access to care. Be sure to read your plan’s Annual Notice of Change and Evidence of Coverage to know exactly which doctors, hospitals, and services are included.
Final Thought
Your health and your wealth go hand in hand. Making smart Medicare decisions isn’t just about money, it’s about the confidence to know your coverage supports your lifestyle, the comfort to know that medical expenses won’t upend your income, and the reassurance that your long-term goals remain intact.
To protecting your nest egg, maintaining your lifestyle, and retiring with confidence.