Medicare Open Enrollment Is Here: A Smaller Part B Increase, but a Bigger Drug Deductible for 2027

Medicare's annual open enrollment period began on Wednesday, Oct. 15, 2026, and runs through Dec. 7. Whatever you choose in that window takes effect on Jan. 1, 2027. For many retirees, it is the single most important money decision of the year, and it is easy to put off.

This year the headlines are mixed. The cost of basic Medicare is rising more slowly than last year, but changes to prescription drug coverage could push some people's bills higher.

Part B: the smallest increase in several years

Part B covers doctor visits and outpatient care, and nearly everyone on Medicare pays its premium. The 2026 Medicare Trustees Report projects the standard premium rising from $202.90 a month in 2026 to about $209.50 in 2027, an increase of about 3.25%, according to the Military Officers Association of America. That would be the smallest jump since 2023.

For comparison, last year's premium climbed from $185 to $202.90, a rise of nearly 10%. The official 2027 figure usually arrives from the Centers for Medicare & Medicaid Services (CMS) in the fall.

The surcharge wealthier retirees pay

If your income is higher, you pay more. These surcharges, called IRMAA (income-related monthly adjustment amounts), are based on the tax return you filed two years earlier. In 2026, they range from $81.20 to $487 a month per person on top of the standard Part B premium. The top income bracket, $500,000 for single filers and $750,000 for married couples, stays frozen until 2028.

Prescription drugs: the part to watch

CMS said on Sept. 28 that average Medicare Advantage premiums are expected to fall more than 16% in 2027, and that standalone Part D drug plan premiums should rise by less than $1 a month on average. Average drug premiums inside Medicare Advantage plans are projected to drop 38%.

But averages can hide big changes for individual plans. A temporary federal program that helped hold down standalone Part D premiums is ending. In California, the median standalone Part D premium rises from $107.00 to $150.55, a 41% jump, according to a 2027 enrollment guide from California Today.

The Part D deductible also rises to $700, and the annual out-of-pocket cap on covered drugs rises to $2,400.

There is some good news on drug prices. Negotiated prices on 15 widely used drugs, including Ozempic and Vraylar, take effect on Jan. 1, 2027.

What it means for you

Plans change every year, even if you don't. A plan that was the best value for you in 2026 may not be in 2027. Before Dec. 7:

• Read the Annual Notice of Change your plan mailed in late September.
• Enter your exact prescriptions into the Medicare Plan Finder at Medicare.gov to compare total yearly costs, not just premiums.
• Confirm your doctors and preferred pharmacies are still in network.
• If you have Medigap, compare your premium with other insurers, but ask about medical underwriting before you switch.
• Check whether your income should trigger, or no longer trigger, IRMAA.

More than 99% of people on Medicare will have at least one Medicare Advantage plan available in 2027, and 97% will have 10 or more, according to CMS. More choice is useful, but only if you take the time to compare.

The bottom line

The cost of Part B is rising more gently in 2027, but drug coverage is where surprises tend to show up. An hour with the Plan Finder now can save hundreds or even thousands of dollars next year, and it is the one window where you can make changes without restrictions.

Sources: Centers for Medicare & Medicaid Services (Sept. 28, 2026), AP News (Oct. 15, 2026), Military Officers Association of America (June 17, 2026), California Today (Oct. 12, 2026)