Here’s what I’m watching for in the 2027 plans
The first numbers for 2027 look encouraging, but the details deserve considerably more attention.
As we get closer to Medicare’s Annual Enrollment Period, I’m starting to see the 2027 Medicare picture come into focus. And I think this could be one of those years when the headline tells only part of the story.
CMS recently announced that the average monthly Medicare Advantage premium is projected to decline from $14.37 in 2026 to $12 in 2027. That’s a 16.5% decrease! CMS also says more than 99% of Medicare beneficiaries will continue to have access to at least one Medicare Advantage plan next year.
Those sound like reassuring numbers, but underneath those numbers, something else is happening. Insurance companies are continuing to rethink where and how they compete in Medicare Advantage. Some are reducing their geographic footprints by terminating plans, while others are putting greater emphasis on plans with more restricted provider networks relying heavily on HMO plans. A report published October 1st highlighted moves toward narrower networks by major insurers as they try to control rising medical costs.
That’s what has my attention. Because when you’re actually using Medicare, the national average premium isn’t necessarily the number that matters most. What matters is getting care when and where you need it.
So this week, we’re going to look beyond the headline.
In our next issue, I’ll explain why Medicare Advantage insurers are tightening networks and reducing their presence in certain markets and why someone who sees a familiar insurance company name on a 2027 plan shouldn’t automatically assume their familiar doctors are coming with it.
CMS projects that the average standalone Part D premium will increase by less than $1 next year, from $35.09 to about $36. However, since I’ve been reviewing the plans, I’ve noticed increases much larger than that. Of course, the premium is only one variable in determining what someone’s prescriptions actually cost. Formularies, deductibles, tiers, and pharmacy networks can matter considerably more.
That’s an important distinction I’ll return to throughout AEP.
Two neighbors can live on the same street, have Medicare, and choose completely different plans because they take different medications, see different doctors, and have different healthcare needs.
That’s why I’m going to spend less time this fall telling you which Medicare plan is “best” and more time helping you understand which questions you should be asking. Knowing which questions to ask is your biggest advantage this Fall.
The first question for 2027 may be surprisingly simple:
What’s actually changing underneath my plan?
We’ll start there this week.
Until next time, keep looking beyond the headlines. That’s where you’ll often find the margin.
Information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. There are no assurances that a portfolio will match or exceed any particular benchmark.
Content should not be viewed as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Estate planning is done in conjunction with your estate planning attorney, tax attorney, and/or CPA. Fusion Investment Advisors is not engaged in the practice of law or accounting.
Whether you’re turning 65, reviewing annual plan changes, or helping a loved one choose coverage, we can help you find a plan that fits your healthcare needs and budget.
Schedule a Medicare Consultation
