Medicare Open Enrollment Starts Oct. 15: New Star Ratings Are Out, and Many Seniors Will Have Fewer Plans to Choose From

If you're on Medicare, the next eight weeks are your yearly chance to switch plans, and this year the menu is changing.

Medicare's annual open enrollment period runs from Thursday, Oct. 15, through Monday, Dec. 7. During that window, people with Medicare can switch health and drug plans for next year. Two recent pieces of news make this year's review especially important: the government's new quality star ratings for 2027 plans, and fresh data showing that many people will have fewer plans to choose from.

The new star ratings

The Centers for Medicare & Medicaid Services (CMS), the federal agency that runs Medicare, released its 2027 star ratings on Oct. 8. The ratings score Medicare Advantage and prescription drug plans from one to five stars based on things like member experience, customer service and how well plans help people manage their health.

About 71% of people in Medicare Advantage plans that include drug coverage are enrolled in plans rated four stars or higher for 2027, CMS said. The average rating, weighted by enrollment, is 3.99 stars, and 15 plan contracts earned the top five-star rating. For stand-alone prescription drug plans, the average rating is lower, at 3.22 stars, though the share of enrollees in plans rated four stars or higher jumped to about 22% from 2% in 2026.

The ratings can move stock prices because Medicare pays bonuses to highly rated plans. Humana said on Oct. 9 that 95% of its Medicare Advantage members will be in plans rated four stars or higher for 2027, and its shares jumped 12% that day, according to Yahoo Finance.

Fewer choices for many people

At the same time, insurers are pulling back from markets they find less profitable. The average Medicare beneficiary can choose from 28 Medicare Advantage plans with drug coverage for 2027, down from 32 in 2026 and a peak of 36 in 2024, according to an analysis by KFF, a nonpartisan health policy research group. Counting all Medicare Advantage plans, the average falls to 35 from 39.

The drops are larger in some states. Texas lost an average of nine options, Illinois and Ohio lost eight, and Minnesota, New Mexico and Washington lost seven, KFF found. Quartz reported that insurers are continuing to exit markets and shrink the number of counties they serve.

If your plan is leaving your area, you may be moved automatically to another plan of the same type from the same insurer. If that isn't possible, you'll need to pick a new plan or you'll be covered by Original Medicare, the traditional government program, according to KFF.

What this means for your wallet

Plans change their premiums, drug lists, doctor networks and out-of-pocket costs every year. KFF notes that most people with Medicare don't compare their coverage each year, which can mean paying more than necessary. A short review this fall could save you hundreds of dollars or help you avoid a nasty surprise in January.

Here's a simple way to approach it:

• Read the Annual Notice of Change your plan mailed you, which lists what's different for next year.
• Make a list of your doctors and prescriptions, then use the Medicare Plan Finder at medicare.gov to compare plans that include them.
• Look at the total yearly cost, not just the monthly premium, including deductibles and copays.
• Check star ratings, but don't rely on them alone. A highly rated plan still needs to cover your doctors and drugs.
• Get free, unbiased help from your State Health Insurance Assistance Program (SHIP) if you feel overwhelmed.

Be cautious with unsolicited calls and ads promising extra benefits. You can always verify information directly through medicare.gov or 1-800-MEDICARE.

This article is for education only and is not financial advice. Everyone's situation is different.