Prepare for 2027 Annual Election Period
Every fall, Medicare gives you a window to review your coverage and make changes for the year ahead. This year's version of that window — running October 15 through December 7, 2026 — decides what your Medicare Advantage or Part D coverage looks like starting January 1, 2027. Here's what's worth knowing before it opens, and a simple way to get ready.
Key Dates to Know
By September 30, 2026 — Every Medicare Advantage and Part D carrier must mail your Annual Notice of Change (ANOC), spelling out what's different about your plan for 2027.
October 1, 2026 — Medicare's Plan Finder tool updates with actual 2027 plan details, so you can compare real numbers rather than estimates.
October 15 – December 7, 2026 — The Annual Election Period itself. This is your window to make changes.
January 1, 2027 — Any change you made takes effect. If you did nothing, your current plan continues under its new 2027 terms.
January 1 – March 31, 2027 — A second, more limited window (the Medicare Advantage Open Enrollment Period) for anyone already in a Medicare Advantage plan who wants one more change.
Why Your Plan Might Not Be the Same Next Year
It's easy to assume that if you liked your plan this year, it'll be just as good in 2027. But Medicare Advantage and Part D plans aren't static — premiums, drug formularies, provider networks, and extra benefits can all shift from one January to the next, and none of that requires your permission or your signature. It simply happens automatically unless you look at it and decide otherwise.
That's exactly what the Annual Notice of Change is for. Think of it less as junk mail and more as a yearly audit of your own coverage — it's worth ten minutes to actually read it rather than set it aside.
A Few Things Specific to 2027
The Part D out-of-pocket cap is rising
Since 2025, Medicare Part D has had a hard annual cap on out-of-pocket drug costs — $2,000 that year, $2,100 in 2026, and expected to land around $2,400 for 2027 (CMS confirms the exact figure each fall). Once you hit it, covered prescriptions cost you nothing for the rest of the year. The old "donut hole" coverage gap is gone for good — Part D now runs through a simple three-phase structure: a deductible, standard coverage, then $0 cost-sharing once you reach the cap.
Star Ratings refresh in October
Every plan's 1-to-5-star quality rating is recalculated and published each October, right before AEP opens. A rating that drops is worth paying attention to, and a 5-star plan in your area can even open a separate switching window later in the year.
You can now pay drug costs monthly instead of all at once
The Medicare Prescription Payment Plan lets you spread your out-of-pocket Part D costs into monthly installments across the year instead of paying larger amounts at the pharmacy counter. It's optional, and worth asking about if a few expensive months of prescriptions would strain your budget.
What AEP Actually Lets You Do
During this window, you can:
• Switch from one Medicare Advantage plan to another
• Move from Original Medicare into a Medicare Advantage plan, or leave Medicare Advantage and return to Original Medicare
• Enroll in, switch, or drop a Part D prescription drug plan
Worth knowing: this window does not apply to Medicare Supplement (Medigap) plans. Medigap has no annual election period — you can technically apply to switch at any time of year, but outside your original enrollment window, it usually requires answering health questions, regardless of what time of year it is.
A Simple Way to Get Ready
1. Find and actually read your ANOC letter. It arrives by September 30 and tells you exactly what's changing about your current plan for 2027 — premium, deductible, drug list, and network.
2. Write down your current medications: name, dosage, and how often you take each one. This is the single most useful piece of information when comparing drug plans.
3. List the doctors and specialists you see, and confirm they're still expected to be in-network for your plan, or any plan you're considering, in 2027.
4. Check your plan's 2027 star rating, available on Medicare's Plan Finder once it updates in October.
5. Compare total yearly cost, not just the premium — add up premiums, deductibles, copays, and expected drug costs to see the real picture, rather than judging a plan on the monthly number alone.
6. Mark December 7 on your calendar. It's a hard deadline — the window doesn't extend, and there's no partial credit for starting late.
If You Don't Do Anything
Nothing bad happens automatically — there's no penalty for sitting out AEP. If you're satisfied with your coverage after reviewing your ANOC, your current plan simply continues into 2027 under its new terms. The only real risk is skipping the review itself: a plan that quietly changed its drug coverage or dropped your doctor from its network won't announce that loudly, so the letter is worth opening even if you expect to keep everything the same.
Common Questions
Can I change my Medigap plan during this window?
No. AEP governs Medicare Advantage and Part D only. Medigap plans can technically be changed anytime during the year, but you'll typically face medical underwriting outside your original enrollment window or a guaranteed-issue situation.
Do I need to re-enroll in Medicare itself every year?
No. You enroll in Original Medicare once. The Annual Election Period is only for changing your Medicare Advantage or Part D coverage.
What happens if I miss the December 7 deadline?
If you're already in a Medicare Advantage plan, you'll have one more limited opportunity during the Medicare Advantage Open Enrollment Period (January 1 – March 31, 2027). Otherwise, you'd generally wait until the next AEP, unless a qualifying life event opens a Special Enrollment Period.
Is switching plans mandatory?
Not at all. AEP is an opportunity, not a requirement. Reviewing your options is worthwhile every year, but if your current plan still fits, you're free to simply keep it.
The Annual Election Period moves fast once it opens, and the plans available in your area for 2027 won't be finalized until right before it starts. Getting your medication list, doctor list, and ANOC letter organized ahead of time is what actually makes the difference — everything else is just comparing numbers once you have that in hand.