Medicare beneficiaries face rising costs and plan exits during open enrollment

The Medicare open enrollment period for 2027 begins on October 15, 2026, and runs through December 7, 2026. This period allows beneficiaries to join, switch, or drop plans, though significant changes to costs and availability are expected.

Prescription drug costs are shifting, with the maximum out-of-pocket deductible increasing from $625 in 2026 to $700 in 2027. Additionally, the maximum out-of-pocket limit for prescription drugs will rise to $2,400, up from $2,100 the previous year. Experts advise consumers to evaluate the total cost of care, including specialist visits and unexpected hospitalizations, rather than focusing solely on low premiums.

Simultaneously, millions of seniors face potential coverage disruptions as private insurers retract Medicare Advantage plans. Major providers, including UnitedHealthcare, Humana, and Aetna, are exiting hundreds of counties, often in rural areas, where they deem markets unprofitable. Projections suggest between 4 and 5 million people could be affected by these plan terminations, leaving many to scramble for alternative coverage before the enrollment deadline.