Your Medicare Advantage Plan Could Cost Less in 2027 - But There’s a Catch

Your Medicare Advantage premium could shrink next year. New CMS projections put the nationwide weighted average at $12 per month in 2027, down from $14.37 in 2026. That's welcome news if you're living on just Social Security, though it doesn't mean your own plan is getting cheaper.

The catch is what you pay after the premium. Doctor visits, prescriptions, and other expenses could eat up those savings, especially if your coverage changes. With Medicare Open Enrollment approaching, it's worth checking what your plan actually offers for next year. Here's what to review before sticking with it.

The lower average isn't a personal price quote

CMS projects a 16.5% decline in the weighted average Medicare Advantage premium. The difference works out to $2.37 monthly, or $28.44 over a year.

That's a nationwide figure across plans, including those with prescription drug coverage and Special Needs Plans. Your premium could fall, stay flat, or rise. Treat the announcement as a reason to check your options, rather than a promise about your next bill.

Your Part B premium still matters

The projected $12 average isn't your entire Medicare bill. Medicare Advantage members must keep paying their Part B premium, even when their plan advertises a $0 premium.

Some plans help pay part or all of that Part B expense through a premium reduction. Check whether yours offers one and how much it covers. A lower Advantage premium alone doesn't tell you whether your overall monthly insurance expenses are dropping.

Start with your Annual Notice of Change

Your plan sends an Annual Notice of Change each fall, generally in September. It explains changes to costs, coverage, and other plan details that take effect in January.

Set aside a few minutes to read it, even if you've liked your coverage so far. Pay particular attention to services you use regularly. If you haven't received the notice, contact your plan and request a copy before making your decision.

Compare what you pay when you need care

Premiums are predictable. The bills that follow an appointment can be easier to overlook. Check next year's deductibles, copayments, and coinsurance for specialist visits, hospital stays, tests, and therapy.

For a hypothetical example, saving $5 a month on premiums gives you $60 annually. Six specialist appointments with copays that increased by $10 would erase that savings. Compare costs for the care you expect to use, rather than stopping at the monthly price.

Look at the out-of-pocket limit, too

A plan that looks affordable during a quiet year could feel very different after a serious diagnosis. Medicare Advantage plans have annual limits on spending for covered Medicare medical services, and those limits vary.

Compare the limit alongside routine copays. Some plans have different limits for in-network and out-of-network care. Consider what you could reasonably afford if you needed much more treatment than expected, rather than assuming next year's health needs match this year's.

Check every prescription you take

If your plan includes drug coverage, review its 2027 formulary and cost-sharing tiers. The formulary lists covered medications, while tiers help determine what you pay. A covered drug can still come with a substantial bill.

Look for prior authorization, quantity limits, or step therapy requirements, which may require trying another medication first. Don't assume that because a prescription was easy to fill this year, the same costs and rules apply next year.

Make sure your providers are in the network

A cheap premium loses some appeal if using your regular doctor becomes more expensive. Medicare Advantage plans may require network providers for non-emergency care, and out-of-network coverage depends on the plan.

Verify your primary care doctor, specialists, and preferred hospital for the specific 2027 plan you're considering. Confirm with both the insurer and the provider's office. Accepting Medicare and participating in your particular Medicare Advantage network are different things.

Read the limits on extra benefits

Dental, vision, hearing, and fitness benefits can make a plan appealing. Still, the benefit name doesn't explain how much help you'd actually receive.

Review covered services, participating providers, and spending limits. If you expect major dental work, ask about that treatment specifically. Benefits you rarely use shouldn't outweigh higher costs for prescriptions or medical care you need regularly.

Compare options before December 7

Medicare Open Enrollment runs from October 15 through December 7, 2026, for coverage beginning January 1, 2027. You can change Medicare Advantage plans during that window.

Use the Medicare Plan Finder with your current medications and preferred pharmacies to compare costs. Generally, you don't need to re-enroll to keep an existing plan that remains available. That convenience makes reviewing its changes especially important: Staying put should be a choice you've checked.

Bottom line

A lower Medicare Advantage premium could help you save money in retirement, but only if the rest of the plan still fits your needs. Review your Annual Notice of Change and compare prescription costs, copays, and provider networks before deciding to stay put.

If the numbers still don't work for your budget, check whether you qualify for a Medicare Savings Program or Extra Help. These programs may help cover Medicare premiums or prescription expenses, potentially providing more relief than a small drop in your plan's monthly price.

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