Medicare AEP 2027 Is Here: Your Step-by-Step Checklist Before December 7

The Medicare Annual Enrollment Period is here. From October 15 through December 7, 2026, you have a narrow window to review, compare, and change your Medicare coverage for 2027. Any changes you make take effect on January 1, 2027.

This year, skipping your annual review could be an expensive mistake. Part D premiums are jumping, hospital networks are shrinking, drug formularies are shifting, and several major rule changes hit all at once. The plan that worked beautifully for you in 2026 may cost you hundreds — or even thousands — more in 2027 if you don't look under the hood.

Here's your step-by-step checklist for getting through AEP with confidence.

Step 1: Read Your Annual Notice of Change (ANOC)

Every Medicare Advantage and Part D plan is required to mail you an Annual Notice of Change (ANOC) by September 30. This is the single most important document of the enrollment season, and it's the one most people toss in the recycling without reading.

Your ANOC spells out exactly what's changing in your plan for 2027:

• Premium increases or decreases
• Changes to copays, coinsurance, and deductibles
• Medications added to or removed from the formulary
• New prior authorization requirements
• Network changes — doctors and hospitals added or dropped
• Changes to supplemental benefits (dental, vision, hearing, OTC cards)

Key Takeaway: If you do nothing else on this list, read your ANOC cover to cover. It's a short document, and it tells you exactly where your money is going next year. If you didn't receive one, call your plan directly and request it.

Step 2: Verify Your Doctors and Hospital Are Still In-Network

This is the step that catches people off guard every year — and this year it's more important than ever.

A growing number of major health systems have been dropping Medicare Advantage contracts. In the last two years, institutions like Mayo Clinic, Mass General Brigham, and Johns Hopkins Medicine have ended relationships with certain Medicare Advantage insurers, citing excessive denials, slow payments, and administrative burden. When a hospital goes out of network, patients can get caught in the middle — sometimes in the middle of the year — facing dramatically higher out-of-pocket costs.

Don't assume your doctors are still in-network just because they were last year. Call your plan or check the online provider directory and confirm for 2027 specifically. This applies to:

• Your primary care physician
• Any specialists you see regularly
• Your preferred hospital or health system
• Your pharmacy
• Any mental health or therapy providers

Key Takeaway: Networks change every year. A two-minute phone call now can save you from a devastating surprise bill later.

Step 3: Check Your Prescriptions Against the 2027 Formulary

Your plan's drug formulary — the list of medications it covers and at what cost tier — changes annually. A drug that cost you a $10 copay this year might move to a higher tier (or be dropped entirely) next year.

This is especially important in 2027 because of two converging changes:

• The Part D Premium Stabilization subsidy is ending. This temporary government subsidy kept Part D premiums artificially low in 2025 and 2026. With it gone, an estimated 45% of Part D enrollees could see monthly premium increases of $11 to $20. If your plan's premium is jumping, it may no longer be the most cost-effective option for your medications.

• Medicare-negotiated drug prices take effect. Starting January 1, 2027, 15 widely used medications — including Ozempic, Wegovy, Rybelsus, Eliquis, Xarelto, and Jardiance — will have new Medicare-negotiated prices averaging about 44% below list price. If you take one of these drugs, your out-of-pocket costs could drop significantly under the right plan.

Here's what to do:

1. Make a list of every medication you take, including dosage
2. Look up each one on your plan's 2027 formulary (available on the plan's website or at medicare.gov)
3. Note the tier and any restrictions (prior authorization, step therapy, quantity limits)
4. Compare with at least two or three alternative plans to see if another option covers your drugs at a lower cost

Key Takeaway: Drug coverage is where the biggest hidden costs live. A plan with a $0 premium can still cost you thousands if it doesn't cover your medications well.

Step 4: Understand the New Out-of-Pocket Numbers for 2027

Several key Medicare cost figures are changing for 2027. Here's what you need to know:

• Part D Out-of-Pocket Cap: Rises from $2,100 (2026) to $2,400 (2027). Once you hit this cap, you pay $0 for covered drugs the rest of the year. The Medicare Prescription Payment Plan (M3P) is still available to spread costs over 12 monthly installments.

• Part D Standard Deductible: Increases from $615 to $700.

• Part B Premium (projected): Expected to rise from $202.90 to approximately $209–$221 per month. Official numbers are announced by CMS in November.

• Part A Inpatient Deductible (projected): Expected to rise to approximately $1,788 per hospital stay.

These numbers matter because they directly affect your total annual healthcare costs. When comparing plans, don't just look at the monthly premium — calculate the total annual cost including premiums, deductibles, copays, and maximum out-of-pocket exposure.

Key Takeaway: The cheapest premium doesn't always mean the cheapest plan. Look at the full picture: premium + deductible + copays + max out-of-pocket.

Step 5: Review Star Ratings — They're Changing This Year

Medicare's star rating system (1 to 5 stars) measures plan quality based on customer satisfaction, clinical outcomes, and other metrics. CMS has removed 11 administrative measures from the Star Ratings system for 2027, shifting the focus more toward actual clinical outcomes and patient experience.

This means some plans that previously had high ratings could see their scores change — and vice versa. A plan's star rating affects the quality of care you receive and sometimes the extra benefits the plan can offer (higher-rated plans get bonus payments they can reinvest in member benefits).

Where to check: Visit medicare.gov/plan-compare to see updated star ratings for plans in your area.

Step 6: Know the Medigap Trap Door

This isn't an annual checklist item — it's a once-in-a-lifetime decision that too many people don't understand until it's too late.

When you first turn 65 and enroll in Medicare, you get a six-month Medigap Open Enrollment window. During this window, you can buy any Medicare Supplement (Medigap) plan with no health questions asked and no risk of being denied for pre-existing conditions.

After that window closes, in most states, an insurer can look at your health history and charge you more — or turn you down completely. That means if you're currently in a Medicare Advantage plan and later want to switch back to Original Medicare with a Medigap supplement (often exactly when you get sick and need it most), you may not be able to get a Medigap policy at all.

Only four states — Connecticut, Massachusetts, Maine, and New York — require insurers to sell you Medigap regardless of your health. For everyone else, that initial six-month window is your best (and sometimes only) guaranteed shot.

Key Takeaway: If you're turning 65 or recently enrolled in Medicare, understand this window before you make any plan decisions. If you're already past it, factor this reality into whether you stay in Medicare Advantage or consider switching.

Step 7: Talk to Someone Who Works for You, Not for an Insurance Company

Medicare is complicated, and it gets more complicated every year. You don't have to figure this out alone, and you shouldn't rely solely on television commercials, mailers, or celebrity endorsements to make one of the biggest financial decisions of your retirement.

Here are your free and low-cost resources:

• SHIP (State Health Insurance Assistance Program): Free, unbiased Medicare counseling in every state. Find yours at shiphelp.org or call 1-800-677-1116.
• Medicare.gov Plan Finder: Compare plans side by side, including costs, drug coverage, star ratings, and provider networks.
• 1-800-MEDICARE (1-800-633-4227): The official Medicare helpline, available 24/7.
• A licensed, independent insurance agent: An agent who represents multiple carriers (not just one company) can help you compare options and find the best fit for your specific medications, doctors, and budget.

The key word is independent. An agent who works for a single insurance company can only show you that company's plans. An independent agent can shop across carriers on your behalf.

Your AEP Quick-Reference Timeline

• By September 30: Your plan mails the Annual Notice of Change (ANOC)
• October 15: AEP opens — you can start making changes
• October 15 – December 7: Compare plans, verify networks, check formularies
• December 7: AEP closes — all changes must be submitted by 11:59 PM
• January 1 – March 31, 2027: Medicare Advantage Open Enrollment Period (MA OEP) — if you're in a Medicare Advantage plan, you get one additional chance to switch to a different MA plan or go back to Original Medicare
• January 1, 2027: Your new coverage takes effect

The Bottom Line

2027 isn't a "set it and forget it" year for Medicare. Between rising premiums, shifting networks, changing drug costs, and new federal rules, there's too much moving for anyone to safely assume their current plan is still the best fit.

The Annual Enrollment Period exists specifically so you can protect yourself. Use it. Read your ANOC, verify your doctors, check your drugs, compare your costs, and — if the numbers don't add up — make the switch before December 7.

And if all of this feels overwhelming, that's exactly what we're here for. We help people navigate this every single day, and we're happy to walk through your options with you at no cost.