The programs behind the premium
Your plan's change letter arrives by September 30, and doing nothing locks in its 2027 prices
WHAT CHANGED?
Between now and September 30, every Medicare Advantage plan and every Medicare drug plan sends its members a letter called the Annual Notice of Change. It spells out what your plan is changing for 2027: the premium, the deductible, your copays, which drugs it covers, which doctors and pharmacies are in its network, and even whether it still serves your area. Medicare's own guide says your plan will send you a printed copy by September 30.
This year the letter matters more than usual. Medicare is ending the temporary program it has used since 2025 to steady premiums for stand-alone drug plans. From 2027, it says, the drug plan program returns to "traditional market conditions." In plain English: drug plans set their 2027 prices with less of that cushion underneath them.
WHO IS AFFECTED?
- Anyone in a Medicare Advantage plan, the private plans that bundle hospital, doctor and usually drug coverage.
- Anyone with a stand-alone Medicare drug plan (Part D) alongside Original Medicare.
- People who get Extra Help with drug costs. Your plan can still change its drug list, pharmacies and costs, so the letter is worth reading.
WHAT DOES IT MEAN?
The key distinction: doing nothing is still a choice. Medicare's yearly review guide says that if you have looked at your options and are happy with your coverage, you don't need to do anything, because your coverage continues automatically. That is convenient when nothing changes. It also means the new 2027 premium, deductible and drug list take effect on January 1 whether you have read them or not.
You may see one number in the news: $41.33. That is Medicare's 2027 "base beneficiary premium," a starting figure in the formula used to work out drug plan premiums. It is not what your plan will charge. Your plan's real 2027 premium is printed in your letter, and it can be higher or lower.
Then there is the window. Medicare Open Enrollment runs October 15 to December 7. A new plan must receive your enrollment request by December 7, and any change starts January 1. The letter arrives before the window opens so you have time to read it first.
WHAT TO DO
When the envelope arrives, open it before it lands in the recycling pile, and find these four things for 2027:
- The monthly premium.
- The yearly deductible.
- Whether each of your prescriptions is still covered, and what it will cost.
- Whether your doctors and your usual pharmacy are still in the network.
If any of the four moved in the wrong direction, write down your drugs and doses and compare plans on Medicare's Plan Finder at Medicare.gov once Open Enrollment begins. No letter by September 30? Call the member number on your plan card and ask for it. For free, unbiased help, your State Health Insurance Assistance Program offers one-on-one counseling; shiphelp.org lists the number for your state.
Expect a lot of Medicare mail and calls in the coming weeks. Medicare.gov, the "Medicare & You" handbook and 1-800-MEDICARE (1-800-633-4227) are the official sources.
The programs behind the premium
The letter shows what a plan will charge. It says nothing about Extra Help, a separate application through Social Security that helps people with limited income and resources pay for Medicare drug coverage, or about the drug assistance programs some states run on their own. Neither is automatic, and no notice goes out about either one.
The Benefits Checklist is a 69-page guide to 11 programs like these, including Medicare Savings Programs, with the 2026 income limits and a 50-state phone directory of who to call in each state.
See the 11 programs and their 2026 limits in The Benefits Checklist.
SOURCE
Medicare's official 2027 yearly review guide: Your Yearly Medicare Review
Written by Ellen Marsh
Retirement Money Brief is educational information only — not financial, tax, or legal advice. We will never ask for your password, bank login, or Social Security number by email.