Reviewed by Scotty Lewis, CSA, RSSA, licensed independent insurance agent
Medicare Advantage plans for 2027 are being finalized, and for many members the plan they have now will not look the same on January 1. If you are enrolled in one, this is the month to pay attention. Here is what has been reported and what we recommend you do about it.
Medicare Advantage 2027: Quick Answers
Is Medicare Advantage going away in 2027?
No. Medicare Advantage is not going away in 2027. The federal government finalized an average 2.48% payment increase to plans, and more than 35 million people are enrolled. What does change is individual plans: some insurers are leaving certain markets, and plans that stay can change their costs and benefits.
Are Medicare Advantage plans going up in 2027?
Payments to plans are going up an average of 2.48%, but that is what the government pays insurers, not your premium. Your premium, copays and out-of-pocket maximum are set by your plan and can go up, down or stay the same. Your Annual Notice of Change shows exactly what changes.
When do 2027 Medicare Advantage plans come out?
Information on 2027 Medicare Advantage and Part D plans becomes public on October 1. Open enrollment runs from October 15 to December 7, and changes you make take effect January 1, 2027.
What happens if my Medicare Advantage plan is leaving in 2027?
A Plan Non-Renewal Notice means your plan is leaving Medicare in 2027. You don’t lose Medicare coverage. You choose a new way to get it: another Medicare Advantage plan, or Original Medicare with a separate Part D drug plan. The rules depend on your situation, so review your options before December 7.
Can I change my Medicare Advantage plan after open enrollment ends?
Yes, if you’re already in a Medicare Advantage plan. Medicare Advantage Open Enrollment runs from January 1 to March 31. During it, you can make one change: switch to another Medicare Advantage plan, or return to Original Medicare and join a drug plan.
Payments to plans are rising, but stability is not guaranteed
The federal government finalized an average 2.48% payment increase to Medicare Advantage plans for 2027, which works out to more than $13 billion in additional payments. CMS also chose not to move forward with a proposed update to the risk adjustment model. (FinanceBuzz) That is higher than some earlier proposals had suggested. (Bottom Line) More than 35 million Americans are enrolled in Medicare Advantage, according to KFF, and insurers are still managing rising health care costs and competitive pressure. (FinanceBuzz) A better payment rate may ease some of that strain, but it does not promise that every plan will return unchanged.
Some plans are leaving, and some members will have to switch
Insurers are reducing their presence in some Medicare Advantage markets for 2027. (Medicare Resources) This follows a difficult year for members, since nearly three million Medicare Advantage enrollees had to switch plans for 2026. (FinanceBuzz)
Every member with a continuing plan should receive an Annual Notice of Change by September 30. A separate Plan Non-Renewal Notice means your specific plan is leaving Medicare in 2027. (FinanceBuzz) A terminated plan does not mean you lose Medicare coverage. It means you need to choose a new way to receive it. (FinanceBuzz)
A plan that stays can still change
Even when a plan remains available, the premium is not the only thing that can move. Pay close attention to the maximum out-of-pocket limit, which often changes and can significantly affect what you spend over the year. (FinanceBuzz) The star ratings many people use to compare plans are being modified for 2027, and new rules on how Medicare Advantage plans are marketed take effect in October 2026, in time for this enrollment season. (Bottom Line)
If your plan is ending, you have options
You are not limited to picking another Medicare Advantage plan. You can also return to Original Medicare with a standalone Part D drug plan, or in some cases buy a Medigap policy. Be careful with that last one. Medicare’s annual enrollment period is not a Medigap open enrollment period, and members do not necessarily have the freedom to move between Medicare Advantage and Medigap at will. A plan termination can, however, create a Medigap opportunity that you would not otherwise have. (Medicare Resources) The rules depend on your situation, so talk with someone before you decide.
If you are already in a Medicare Advantage plan, there is also a Medicare Advantage Open Enrollment period from January 1 to March 31 that lets you change plans after the new year. (Bottom Line)
How to compare your options
Your Annual Notice of Change lists what is changing in your current plan, including coverage, costs, provider networks, and service area. (Medicare.gov) To see what else is available, use the Medicare Plan Finder. Enter your ZIP code, your medications, and your pharmacy, and it estimates your out-of-pocket costs for each plan and shows whether your doctors are in network. Free, unbiased help is also available from Tennessee SHIP at 1-877-801-0044 and from 1-800-MEDICARE at 1-800-633-4227.
Questions worth asking about any plan
- Is my plan continuing for 2027, and exactly what changes?
- What is the maximum out-of-pocket limit, and how does it compare with this year?
- Are my doctors, my hospital, and my pharmacy in network?
- Is each of my prescriptions on the 2027 drug list, and at what cost?
Recommended steps before December 7
Information on 2027 Medicare Advantage and Part D plans becomes public on October 1. Open enrollment runs from October 15 to December 7, and changes you make take effect January 1, 2027. (FinanceBuzz) We recommend the following.
- Find your Annual Notice of Change or Plan Non-Renewal Notice and read it in full.
- Compare the maximum out-of-pocket limit, not just the monthly premium.
- Confirm that your doctors, hospital, and pharmacy remain in network.
- Check your prescriptions against the plan’s 2027 drug list.
- If your plan is ending, review all of your options before choosing a replacement.
Plan details vary by county, and what is offered in Cookeville may differ from what is offered in neighboring communities. If you would like help comparing your options before the deadline, contact Upper Cumberland Life & Health or stop by our office. We will walk through your notice with you and review every option, without pressure.
Plan details for 2027 are still being published and vary by insurer and location, so check your own notice for the specifics that apply to you.
Sources:
- FinanceBuzz, Medicare Advantage Payment Hike for 2027
- FinanceBuzz, Your Medicare Advantage Plan Might Not Survive 2027
- Bottom Line, Medicare Changes in 2027
- Medicare Resources, Medicare Open Enrollment 2027
- Medicare.gov, Medicare Plan Finder
- Tennessee Department of Disability and Aging, Tennessee State Health Insurance Assistance Program (TN SHIP)
- Medicare.gov, Plan Annual Notice of Change (ANOC)
