Your 2027 Annual Notice of Change is the letter that tells you what your Medicare plan will change on January 1, and it is the best place to start this fall. Medicare says the average Medicare Advantage premium will drop from $14.37 to $12.00 a month in 2027. That sounds like good news, and for many people it is. But your plan can also change its doctors, its drug list, its extra benefits, and its rules. Here is how to read your letter and what to check before Open Enrollment ends on December 7.
What Is the Annual Notice of Change?
The Annual Notice of Change, often called the ANOC, is a letter from your Medicare Advantage or Part D plan. By law, plans must send it by September 30 each year. It lists every change to your plan’s costs and coverage for the next year. If you have not seen yours, look in your mail and your email, or call your plan and ask for a copy.
Many people toss this letter or put it in a drawer. That can be a costly mistake. Your plan can change a lot from one year to the next, even if its name stays the same. If you do nothing, you stay in the same plan for 2027 with all of its new changes. You can learn more in our post on why your Annual Notice of Change matters.
What Medicare Says About 2027 Premiums
In late September 2026, Medicare shared its first look at 2027 plans. On average, Medicare Advantage premiums are going down. Stand-alone drug plan premiums are about the same. These are the average monthly premiums Medicare expects:
- Medicare Advantage plans: $12.00 in 2027, down from $14.37 in 2026
- Drug coverage inside Medicare Advantage plans: $7.00 in 2027, down from $11.32 in 2026
- Stand-alone Part D plans: $36.00 in 2027, up from $35.09 in 2026
The Medicare Rights Center says about 80% of people now in a Medicare Advantage plan can stay in their plan in 2027 and pay the same or a lower premium. That still leaves about 1 in 5 people who will pay more, or whose plan is ending. There are also fewer plans to pick from. The average person will have about 35 Medicare Advantage plans to choose from, down from 39 in 2026.
Keep in mind that these are averages across the whole country. Your own premium could go up even if the average goes down. The only way to know is to read your own letter.
5 Things to Check on Your 2027 Annual Notice of Change
A lower premium does not always mean a lower total cost. A plan can cut its premium and raise its copays at the same time. Look at these five things in your letter.
1. Premium and Costs
Start with your monthly premium, then keep going. Check your deductible, your copays for doctor visits, and your copays for hospital stays. Also check your plan’s yearly out-of-pocket limit. This is the most you would pay for covered medical care in one year, and it can change from year to year.
2. Your Drug List
Every plan has a list of drugs it covers, called a formulary. Check each drug you take on your plan’s 2027 list. Look for drugs that were dropped, moved to a higher tier, or given new rules. The yearly cap on Part D drug costs goes up from $2,100 in 2026 to $2,400 in 2027, and that applies to Medicare Advantage drug coverage too.
3. Doctors, Hospitals, and Pharmacies
Your letter may not list every doctor who left the network, so do not count on it alone. Look up each of your doctors and hospitals in your plan’s 2027 directory. You can also call their offices and ask if they will take your plan next year. Check your pharmacy, too, since preferred pharmacies can cost less.
4. Extra Benefits
Many Medicare Advantage plans offer extras like dental, vision, hearing aids, gym programs, and cards for over-the-counter items. These extras can shrink or go away from one year to the next. If you count on your dental coverage, check the yearly limit and what it covers. Our dental, vision, and hearing guide explains how these benefits work.
There is also a new rule for 2027. Some plans offer special extras, like grocery or utility help, to people with certain long-term health problems. Starting in 2027, Medicare requires plans to use clear, objective rules to decide who qualifies, instead of just taking a member’s word for it. If you get these extras now, check if you still qualify in 2027.
5. Prior Authorization and Referrals
Prior authorization means your plan must approve some care before you get it. Referrals mean you need your main doctor’s OK to see a specialist. Plans can add these rules for more services each year. New rules can slow down care you get today, so read this part of your letter closely. You can learn more in our post on Medicare prior authorization changes.
How to Compare Your Options
Once you know what is changing, compare your plan with others in your area. Medicare’s Plan Finder lets you enter your drugs and pharmacy and see your total yearly cost for each plan. It also shows each plan’s star rating, from 1 to 5 stars. Medicare usually posts new star ratings in early October, so check them as you shop.
You may also want to compare Medicare Advantage with Original Medicare. If you choose Original Medicare, you can add a stand-alone drug plan and a Medigap plan. Medicare’s telehealth rules for Original Medicare have been extended through December 31, 2027, so you can still see many providers by video or phone from home. Our post on Medicare Advantage vs. Medigap compares the two paths.
At We Can Help You, we often meet people who have kept the same plan for years because changing felt hard. A licensed local agent can do the comparing for you, at no cost to you. They can check your doctors, drugs, and budget across many plans at once. That can turn hours of reading into one short meeting.
Key Dates for 2027 Coverage
- September 30, 2026: Plans must send your Annual Notice of Change by this date.
- October 1, 2026: 2027 plans show up on Medicare’s Plan Finder.
- October 15 to December 7, 2026: Open Enrollment. Join, switch, or drop a plan for 2027.
- January 1, 2027: Your 2027 coverage starts.
- January 1 to March 31, 2027: If you are in a Medicare Advantage plan, you can make one switch during the Medicare Advantage Open Enrollment Period.
Do not wait until the last week of Open Enrollment. Agents and plan phone lines get very busy in December. Starting now gives you time to ask questions and make a calm choice.
Conclusion
Medicare Advantage premiums are dropping on average in 2027, but your own plan may still change in ways that cost you more. Read your Annual Notice of Change and check five things: costs, drugs, doctors, extra benefits, and approval rules. Then compare your plan with others before December 7. We Can Help You is a nonprofit that offers free Medicare education and connects people with licensed local agents. Find a Medicare agent near you to review your 2027 Annual Notice of Change together, or get our free Medicare Planning Guide.
