By Jessie A. Navalta, Owner/Broker, TrustHaven Insurance Agency — October 2026
Most of the Medicare noise this fall is about Medicare Advantage: networks, discontinued plans, extra benefits. But if you have Original Medicare with a Medicare Supplement (Medigap) and a separate prescription drug plan, there’s a quieter change for 2027 that deserves your attention. And Annual Enrollment opens today, October 15.
What’s Changing for Standalone Drug Plans in 2027
For the last two years, a temporary federal program called the Part D Premium Stabilization Demonstration helped keep standalone drug plan premiums in check by limiting how much participating plans could raise prices from one year to the next. That program ends December 31, 2026.
It only applied to standalone Part D plans, the kind people pair with Original Medicare. If your drug coverage is built into a Medicare Advantage plan, this change doesn’t affect you directly.
Medicare says most people should see premium increases of less than $10 a month, and some plans may actually cost less. But “most” isn’t “all,” and it depends entirely on which plan you’re in.
The 2027 Numbers at a Glance
- Out-of-pocket cap on covered drugs: $2,400 (up from $2,100 in 2026)
- Maximum standard deductible: $700
- National base beneficiary premium: $41.33, up 6%. This is a starting point Medicare uses to calculate premiums, not what you’ll actually pay.
Your real premium depends on your plan and where you live.
Your 10-Minute Re-Shop Checklist
- Find your Annual Notice of Change (ANOC). Your plan mailed it by the end of September. Look at the 2027 premium and deductible first.
- Check your drugs one by one. Plans can drop a drug from their list, move it to a higher tier, or add prior authorization.
- Confirm your pharmacy. Preferred pharmacy status can change, and the same prescription can cost noticeably more at a non-preferred pharmacy.
- Compare total yearly cost, not just the premium. Twelve months of premiums, plus the deductible, plus your copays.
- Decide by December 7. New coverage starts January 1.
The Three Mistakes I See Most Often
- Letting the plan auto-renew without looking. If you do nothing, you stay in the same plan at the new price, under the new rules. That’s fine if you checked. It’s risky if you didn’t.
- Picking the lowest premium. A low-premium plan with a high deductible, or with one of your key drugs on a high tier, can cost more by spring than a plan that charges a little more each month.
- Assuming you don’t qualify for help. Extra Help (also called the Low Income Subsidy) can lower your drug plan premium, deductible, and copays. Many people who qualify never apply, and you can apply anytime through Social Security.
Why This Matters Even More If You Have a Medigap Plan
Your Medigap plan doesn’t change its benefits or networks from year to year. That’s one of its biggest strengths. Your drug plan is the one piece of your coverage that does change every year, which makes Annual Enrollment your yearly checkup for it. A great Medigap plan paired with the wrong drug plan can quietly cost you hundreds of dollars a year.