Medicare open enrollment begins Thursday (October 15), giving beneficiaries until December 7 to select coverage that will take effect January 1, 2027. The enrollment period comes as more than 70 million Medicare enrollees face several significant changes to their prescription drug coverage and costs.

During open enrollment, people can choose between traditional Medicare and privately run Medicare Advantage plans in their area, as well as prescription drug plans. The enrollment window also arrives as the Social Security Administration announced Wednesday that the annual cost-of-living adjustment for older adults and people with disabilities will increase by 3.6 percent beginning in 2027, translating to $75 extra per month for the nearly 72 million people who receive monthly Social Security benefits.

The cap on annual out-of-pocket expenses for Medicare Part D drugs will increase to $2,400 in 2027, up from $2,100 in 2026. The standard deductible will also increase from $615 to $700.

A temporary Part D premium subsidy program will end early as the Trump administration concludes the program at year's end. The subsidy, which was initially implemented by former President Joe Biden's administration in 2024, helped offset premiums and lowered patients' Medicare Part D prescription drug costs in response to effects of the 2022 Inflation Reduction Act. The Centers for Medicare & Medicaid Services has projected only modest price increases for most people despite the subsidy's end.

New Medicare-negotiated prices will go into effect for 15 drugs starting January 1, part of a Biden-era law that allows the haggling for Medicare. The covered medications include weight-loss and diabetes drugs Ozempic, Rybelsus and Wegovy, as well as Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, Calquence, Austedo and Austedo XR, Breo Ellipta, Tradjenta, Xifaxan, Vraylar, Janumet and Janumet XR, and Otezla. CMS expects the change to lower prescription drug coverage for people enrolled in Medicare by $685 million in 2027.

Along with the changes, President Donald Trump recently made a series of promises to Medicare enrollees and retirees. Last week, President Trump announced his administration will make one-time payments of $90 per person in October to help more than 20 million Medicare enrollees pay for their Part B premiums. The payments, costing about $2 billion, will not be available to roughly 35 million Medicare Advantage enrollees, millions of other people with disabilities and low-income Medicare recipients. Most eligible beneficiaries will receive a direct deposit, while others will receive a paper check from the Treasury Department later in October.

New Medicare enrollees who need help can use free counseling from State Health Insurance Assistance Programs available in every state. Volunteer counselors can help beneficiaries understand plan options and compare coverage.

The Vinnie Penn Project