Millions of Medicare beneficiaries are just days away from one of the most important financial decisions they’ll make this fall. Medicare Open Enrollment begins October 15, and the federal government has already released several important cost figures for 2027. Some numbers suggest lower monthly premiums, while others reveal higher potential prescription drug expenses.
According to the Centers for Medicare & Medicaid Services, average Medicare Advantage premiums are projected to fall 16.5% next year. However, the maximum Part D deductible is increasing, and the annual out-of-pocket spending cap for covered prescription drugs is also rising. Those differences matter because a lower monthly premium doesn’t necessarily mean lower overall healthcare costs. Before deciding whether to keep your current coverage, here’s what the new 2027 Medicare costs could mean for your retirement budget.
