Don’t renew Medicare Part D on autopilot
Heads up! A federal subsidy for Medicare Part D is ending. Your premium may be affected.
The federal government ends a temporary subsidy program created to stabilize the Medicare Part D market this year, possibly pushing premiums higher next year. Here's a quick primer on what to do to try to keep your premiums under control.
The Editors
A seven-point checklist for comparing 2027 Medicare drug plans
Medicare Part D plans can change their premiums, deductibles, drug lists and pharmacy networks every year. A plan that worked well in 2026 may be much more expensive in 2027.
Before open enrollment ends on December 7, check these seven items:
1. Enter every prescription
Use Medicare’s Plan Finder and enter the exact name, dosage and frequency of every medication you take.
Do not compare plans based only on the monthly premium. A low-premium plan may charge much more for your prescriptions.
2. Check the formulary
Make sure each drug is still covered.
Look for changes in:
- Coverage tiers;
- Copayments and coinsurance;
- Prior-authorization rules;
- Quantity limits;
- Step-therapy requirements.
A drug that moves to a higher tier can become substantially more expensive even if the plan premium barely changes.
3. Compare total annual cost
Add together:
- Monthly premiums;
- The annual deductible;
- Expected copayments or coinsurance;
- Costs at your preferred pharmacy.
Medicare’s Plan Finder can estimate total yearly spending based on your medication list.
4. Review pharmacy networks
Plans often charge less at “preferred” pharmacies.
Confirm that your usual pharmacy remains in the network and check whether another nearby pharmacy would provide lower prices. Also compare mail-order costs, but do not assume mail order is always cheaper.
5. Read the Annual Notice of Change
Your current plan must send an Annual Notice of Change before open enrollment.
Review it carefully for changes in:
- Premiums;
- Deductibles;
- Drug coverage;
- Pharmacy networks;
- Cost-sharing rules.
Do not assume that silence means nothing has changed.
6. Check eligibility for Extra Help
Medicare’s Extra Help program can reduce Part D premiums, deductibles and prescription costs for people with limited income and resources.
Consumers can apply through the Social Security Administration or ask a State Health Insurance Assistance Program counselor for help.
7. Get independent assistance
Free counseling is available through State Health Insurance Assistance Programs, commonly known as SHIP.
SHIP counselors are not insurance agents and do not earn commissions for recommending a particular plan.
Important dates
September: Medicare plans begin sending notices describing 2027 changes.
October 15: Medicare open enrollment begins.
December 7: Open enrollment ends.
January 1, 2027: New coverage and plan changes generally take effect.
Bottom line
The cheapest premium is not always the cheapest plan.
Compare the total cost of your medications, confirm that your drugs and pharmacy are covered, and review your options every year—even when you are satisfied with your current plan.
