Medicare Open Enrollment: How to Compare Plans and Avoid Overpaying

Every fall, private Medicare plans can change their prices, the drugs they cover, and the doctors they work with for the coming year. You get just under eight weeks to decide whether your plan still fits.

An analysis by eHealth, an online insurance broker, found that Medicare Advantage members who checked their plan against 2026 options could have saved an average of $1,676 a year. This WorkMoney guide covers 2027 open enrollment dates, what’s changing, how to compare plans, and where to find free help.

When Is Medicare Open Enrollment for 2027?

Medicare open enrollment runs Oct. 15 through Dec. 7. Make any changes by Dec. 7. Changes take effect Jan. 1, 2027.

During open enrollment, you can:

• Join, drop, or switch a Medicare Advantage plan, with or without drug coverage.

• Join, drop, or switch a Part D drug plan if you have Original Medicare.

• Move from Original Medicare to Medicare Advantage, or from Medicare Advantage back to Original Medicare.

If you have a Medicare Advantage plan, you get one more chance from Jan. 1 through March 31 to pick a new Medicare Advantage plan or switch to Original Medicare.

If you do nothing, you’ll generally stay on the same plan. However, costs and coverage may change next year.

To switch, enroll through Plan Finder, contact the plan, or call 1-800-MEDICARE.

What’s Changing in Medicare for 2027?

The federal government sets some of the numbers that shape your costs. Many of those are going up in 2027.

• Drug deductible: This year, the most a standard Part D plan can charge before your coverage starts is $615. In 2027, it’ll be $700.

• Drug cost cap: The yearly limit on what you pay out of pocket for covered drugs rises from $2,100 to $2,400. Once you reach it, you won’t pay anything else for covered drugs for the rest of the year.

• Stand-alone drug plan premiums: Medicare is ending a short-term program that held down premiums for stand-alone drug plans in 2025 and 2026. If you have one of these plans, check your 2027 premiums.

• Medicare Advantage limits: The highest yearly out-of-pocket limit a plan can set for in-network care rises to $9,850. For PPO plans, the limit for in- and out-of-network care combined can reach $14,800. Plans can set lower limits.

As of publication, Medicare hasn’t announced the 2027 Part B premium amount.

Get Ready to Compare

Before you compare plans, gather some important information, including:

• Your Medicare card.

• Every drug you take, including dosage and frequency.

• Your pharmacy (and backup pharmacies, if you have any).

• The doctors, specialists, and hospitals you want to keep.

• Anything you expect next year, such as a planned surgery, a new medication, or ongoing therapy.

• What you paid this year in premiums and copays, if possible.

Find the letter from your plan

If you have a Medicare Advantage or Part D plan, look for the Annual Notice of Change. This letter lists what your plan will change next year, including premiums, copays, covered drugs, and which doctors and pharmacies are in the network. Most people get it by Sept. 30. If yours hasn’t arrived, contact your plan.

How to Compare Medicare Plans and Avoid Costly Mistakes

Medicare’s Plan Finder lets you enter your drugs and pharmacy and see the plans in your area. As you review plans, focus on a few things.

1. Your total yearly cost

Add up 12 months of premiums, what you’ll likely pay for drugs, and your usual copays. A plan with a $0 premium can cost you more over a full year if your drugs or doctor visits cost more.

2. Your worst-case year

Every Medicare Advantage plan caps what you pay each year for covered medical care. Original Medicare has no yearly cap.

In 2026, the average in-network limit for Medicare Advantage enrollees was $5,421. Review each plan’s limit and decide whether you could pay it if you have a hard year.

3. Each of your drugs

Make sure every drug you need is on the plan’s covered drug list. Then, check which cost tier it’s on and whether you need the plan’s approval before you fill it. Plans may also charge less at preferred pharmacies.

4. Each of your doctors

With an HMO plan, you typically have to use the doctors and hospitals in the plan’s network, except for emergencies and urgent care when you’re away from home. 

If you see a doctor outside the network, you may have to pay the full cost. PPO plans must cover care outside the network, usually at a higher cost share. Call each of your doctors' offices to confirm they’ll take the plan in 2027.

5. Medigap rules (if you’re leaving Medicare Advantage)

Medigap policies help pay your share of costs in Original Medicare, but they limit when you can buy one. 

If you switch from Medicare Advantage to Original Medicare, Medigap insurers can generally turn you down or charge you more based on your health history. A few states offer stronger protections, so check your state’s rules before you switch.

Free Help to Compare Plans and Lower Costs

SHIP counseling. Every state has a State Health Insurance Assistance Program, or SHIP, that offers free, unbiased one-on-one Medicare counseling. SHIP counselors can also guide you through the Extra Help application.

Extra Help. This federal program helps pay Part D premiums, deductibles, and copays for people with limited income and resources. In 2026, you may qualify with income below $23,940 ($32,460 for a married couple) and resources below $18,090 ($36,100 for a couple). In 2027, people with Extra Help pay $0 for their plan premium and deductible and no more than $5.80 for each generic drug. You can apply through Social Security any time.

Medicare Savings Programs. These state programs help pay Part B premiums, and some also cover deductibles and copays. Some states allow higher income than the federal limits, so apply even if you don’t think you’ll qualify. You can apply for Extra Help and a Medicare Savings Program at the same time.