Maximizing your benefits and minimizing your costs for Medicare continues to become increasingly complex, including the year of 2027. Insurers are terminating Medicare Advantage plans and Medicare Part D plans. The options for seniors are decreasing across much of the country.
Five years ago, Medicare participants could choose from an average of 30 stand-alone Medicare Part D drug plans. For 2027 the average available drops to 11 plans, a drop of 63%. There were subsidies for Medicare Part D plans over the past two years that end in 2027. However, the good news is that the Trump administration has negotiated lower negotiated prices for fifteen prescription drugs that many seniors take. In addition, the maximum out-of-pockets for Part D expenses is going up from $2,100 to $2,400 and the maximum Medicare Part D deductible is going up as well.
With regards to drug plans that are included in Medicare Advantage plans, plan availability varies widely by county in 2027. Two of the largest Medicare Advantage insurers, UnitedHealth Group and Humana are exiting more counties and scaling back other benefits, while raising costs or out-of-pocket maximum coverage. Some Medicare participants will have no Medicare Advantage drug plans available to them.
Enrollment in Medicare Advantage plans continues to increase so that nearly half of Medicare participants are using a Medicare Advantage plan. These plans have an annual maximum out-of-pocket cost for hospitalizations and doctor treatments. Some include coverage for prescription drugs. In light of the significant changes to Medicare Advantage Plans and Medicare Part D plans, it is advisable to review your coverage even if your plan is not going to be discontinued.
Medicare’s open enrollment period started October 15th and continues until December 7th. On Wednesday, November 18th, from noon to 1:30 p.m., Susan Moore of Moore Wealth Management, Inc. will be conducting an annual complimentary webinar workshops that covers the changes for 2027 and how to maximize your Medicare in light of these changes. There will be both a live and recorded version.
If you miss the webinar, you can request a link to the recorded version. Please call the Moore Wealth Management office for further information or reservations at 334.270.1672 or email sarah@moorewealthmanagement.com. If you miss the webinar, we will offer free consultations that are without obligation.
Susan Clayton Moore, J.D., is a financial advisor and wealth manager of Moore Wealth Management, Inc., with offices Montgomery and Alexander City, AL. Susan has over $150 million in assets (as of 9.1.24) under management through Kestra Financial and has been a financial planner for over 40 years. Contact Susan at 256.234.2761. Email contact is susan@moorewealthmanagement.com.
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney or tax advisor regarding your individual situation. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Kestra IS or Kestra AS are not affiliated with Moore Wealth Management, Inc. https://www.kestrafinancial.com/disclosures