U<\/span>nderstanding how to navigate Medicare is an important part of maintaining your health and financial security as you age. Even though Medicare can cover the bulk of your medical expenses after you turn 65, you still have to pay for premiums, deductibles, copayments and additional coverages to fill in the gaps.<\/p>\n You also need to make some key decisions every year that have a significant impact on your coverage and costs. It\u2019s especially important to compare your options during open enrollment this fall to make sure you have the best coverage for your needs for 2027.<\/p>\n Your annual choices depend on the way you choose to receive your Medicare coverage. You have two options:<\/p>\n You can choose to get your coverage from original Medicare, the federal program that includes Part A (hospitalization) and Part B (doctor\u2019s services and outpatient care) and covers any doctor or hospital that participates in the program, which includes the vast majority of providers. But you have to pay deductibles and copayments, and original Medicare doesn\u2019t automatically cover prescription drugs.<\/p>\n You can buy a Medicare supplement policy, also called Medigap, to help cover the copayments, deductibles and other out-of-pocket expenses, and a Part D prescription-drug policy to help cover your drug costs. Both types of plans are offered by private companies.<\/p>\n Part D plans improved significantly in 2025, when the Inflation Reduction Act capped the maximum amount you have to spend out of your pocket for covered drugs at $2,000 for the year. That cap increases with inflation \u2013 it\u2019s $2,100 in 2026<\/a> and will rise to $2,400 in 2027<\/a>.<\/p>\n Despite the cap, there can still be significant differences in coverage and costs for Part D plans, making it important to shop around for the best coverage for you each year. Plans have different lists of covered drugs, called formularies, and you\u2019ll end up with large out-of-pocket costs if the drugs you take aren\u2019t included. Part D coverage and costs can change from year to year.<\/p>\n Instead of original Medicare, you can choose to get both medical and drug coverage from a private company through a Medicare Advantage plan. Unlike original Medicare, these private plans usually have provider networks and you might have to pay much more \u2013 or you could have no coverage at all \u2013 if you use an out-of-network provider.<\/p>\n These plans can have different copayments and deductibles than original Medicare, and they tend to have more prior authorization requirements. Most Medicare Advantage plans also include prescription-drug coverage \u2013 with the same maximum spending cap as standalone Part D plans \u2013 and they usually add on some coverage for dental, vision and hearing care, which is typically excluded from original Medicare.<\/p>\n The coverage, costs, provider networks and drug formularies for Medicare Advantage plans can also change from year to year.<\/p>\n You have from October 15 to December 7 each year to review your options and choose the best Part D or Medicare Advantage plan for the next calendar year. Even if you\u2019ve been happy with your current plan, it might not be your best option. Plans can change their coverage and costs significantly from year to year, and your medical needs and the drugs you take can change, too. The best plan for you can be very different than it is for your friends or neighbors.<\/p>\n It\u2019s especially important to check your options during open enrollment this fall because both Part D and Medicare Advantage plans are expected to make some major changes to their coverage and costs for 2027.<\/p>\n Part D and Medicare Advantage plans can enter or leave the business each year. Your plan could disappear or a new plan could start doing business in your area with better coverage for your specific needs.<\/p>\n You may also see big changes in costs. The federal government announced in late July<\/a> that it would discontinue a program that had been subsidizing the cost of Part D plans for insurers at the end of 2026.<\/p>\n The subsidy was paid to insurers, rather to consumers, but many plans are expected to boost premiums as a result. However, the impact can vary significantly by plan, and premiums are only one factor to consider. It\u2019s also important to check whether your drugs are covered by the plan and how much you\u2019d pay in out-of-pocket costs during the year.<\/p>\n Medicare Advantage plans are expected to make changes, too. The federal government didn\u2019t end up reducing payments to Medicare Advantage plans<\/a> as much as originally expected \u2013 so fewer companies are likely to leave the business than predicted earlier in the year. But the companies are still looking for ways to cut costs, and one way is by reducing extra coverage for dental, vision and hearing care. Rather than eliminate these coverages entirely, they\u2019re likely to cut back in less obvious ways, such as by reducing maximum coverage limits, increasing cost sharing or dropping coverage for expensive procedures, such as dental implants. You need to delve into the details about these extra coverages, not just look at whether or not they\u2019re offered.<\/p>\n You can find out more about all of the Part D and Medicare Advantage plans available in your area by using the Medicare Plan Finder at www.medicare.gov\/plan-compare. Information for the 2027 plans will be available in October, and you can choose your plan from October 15 to December 7. You can input your zip code, drugs and dosages into the tool to estimate your total costs \u2013 premiums as well as deductibles and copayments for your drugs \u2013 for each plan. Also check whether the plans have a preferred pharmacy with the lowest costs.<\/p>\n For Medicare Advantage plans, also look at out-of-pocket costs for the types of care you usually use as well as the copayments for hospital stays, which can vary a lot by plan. You can also use the tool to find out if your doctors are included in the plan, and you can click on the link to the plan\u2019s website below the plan name on the \u201cplan details\u201d page to access the plan documents for more information about extra coverages.<\/p>\n You can sign up for your 2027 Part D or Medicare Advantage plan at the Medicare.gov website. If you choose a Medicare Advantage plan and then discover it wasn\u2019t your best option when you start to use it, you have an additional open enrollment period to make changes: You have from January 1 to March 31 to switch to a different Medicare Advantage plan or to switch back to original Medicare and get a standalone Part D plan. Keep this opportunity in mind if you change your mind or you end up with new medical expenses after the year begins.<\/p>\n What you need to know from Medicare 101 book author<\/p>\n","protected":false},"author":3,"featured_media":17700,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[222,224],"tags":[],"class_list":["post-17680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fall-2026","category-fall-2026-columns"],"acf":[],"_links":{"self":[{"href":"https:\/\/healthyaging.net\/magazine\/wp-json\/wp\/v2\/posts\/17680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/healthyaging.net\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/healthyaging.net\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/healthyaging.net\/magazine\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/healthyaging.net\/magazine\/wp-json\/wp\/v2\/comments?post=17680"}],"version-history":[{"count":7,"href":"https:\/\/healthyaging.net\/magazine\/wp-json\/wp\/v2\/posts\/17680\/revisions"}],"predecessor-version":[{"id":17988,"href":"https:\/\/healthyaging.net\/magazine\/wp-json\/wp\/v2\/posts\/17680\/revisions\/17988"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/healthyaging.net\/magazine\/wp-json\/wp\/v2\/media\/17700"}],"wp:attachment":[{"href":"https:\/\/healthyaging.net\/magazine\/wp-json\/wp\/v2\/media?parent=17680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/healthyaging.net\/magazine\/wp-json\/wp\/v2\/categories?post=17680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/healthyaging.net\/magazine\/wp-json\/wp\/v2\/tags?post=17680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Original Medicare:<\/h3>\n
Medicare Advantage:<\/h3>\n
Why It\u2019s Important to Review Your Options for 2027<\/h3>\n
How to Compare Plans for 2027<\/h3>\n
Kimberly Lankford is the author of Medicare 101<\/a> (Adams Media 2026). She has been a personal finance journalist for more than 25 years, specializing in Medicare, health insurance, retirement, and consumer finance.<\/h5>\n","protected":false},"excerpt":{"rendered":"