Medicare open enrollment runs from Oct. 15 through Dec. 7, with most changes taking effect Jan. 1, 2027. Enrollees will see the Part D out-of-pocket cap increase to $2,400 from $2,100, and the standard deductible rise to $700 from $615. A temporary Part D premium subsidy first introduced under the Biden administration also ends this year, though CMS projects only modest premium increases for most people.
New drug price negotiations, authorized by the Inflation Reduction Act, will lower costs for 15 medications starting in January. The list includes semaglutide (Ozempic, Wegovy), along with treatments for cancer, COPD, and other conditions. CMS estimates these negotiated prices will cut enrollee prescription drug spending by $685 million in 2027.
Separately, the Trump administration will issue one-time $90 rebates this month to help about 20 million Medicare Part B enrollees pay premiums. The rebate excludes roughly 35 million Medicare Advantage members, as well as many people with disabilities and low-income recipients. Social Security benefits will rise by 3.6% in 2027, adding about $75 per month for most recipients.
AARP's Nancy LeaMond said higher healthcare costs are making it harder for older Americans to afford care, and urged enrollees to compare plans carefully. The enrollment period arrives amid inflation concerns and weeks before midterm elections, with voters consistently ranking cost-of-living as a major issue.