Medicare advantage premiums are dropping an average 16.5 percent for 2027, but the savings can hide in plain sight. Out-of-pocket maximums are rising, and some plans are trimming dental, vision, and over-the-counter benefits.
WHAT THE 16.5 PERCENT DROP MEANS IN DOLLARS
A recent Washington Post analysis, published Monday, reported that the average monthly Medicare Advantage premium is projected to fall from $14.37 in 2026 to $12.00 in 2027. The $2.37 monthly difference is about $28 for a full year.
That is a national average, not a quote for an individual plan. Actual premiums and benefits vary by plan and location. Some plans have no monthly plan premium; others charge more. The separate Medicare Part B premium is generally still due.
The premium change also does not establish whether a person will spend less on health care overall. A plan may reduce a dental allowance, raise specialist copays or deductibles, or change other cost-sharing. For example, if a plan’s dental allowance falls from $2,000 to $1,000 and a member needs eligible care that used the full allowance, the change could leave as much as $1,000 more in dental costs. The exact amount depends on the plan’s covered services, limits, and payment rules.
The National Council on Aging’s 2026 and 2027 Medicare Advantage cost overview describes the premium context and notes potential changes to cost-sharing and supplemental benefits. Its overview also reports a 2027 maximum out-of-pocket limit of $9,850 for covered Part A and Part B services. Plans may set lower limits, and plan rules matter. Prescription drug costs generally do not count toward the Medicare Advantage medical out-of-pocket maximum.
SEVEN ITEMS TO CHECK IN THE ANNUAL NOTICE OF CHANGE
The annual notice of change (ANOC) describes changes to a current Medicare Advantage plan for the next calendar year. Compare the 2026 and 2027 figures and benefit terms. The following checklist identifies the main items to review before the December 7 deadline.
| Check | What to compare |
|---|---|
| 1. Monthly premium | The plan premium for 2027. Keep it separate from the Part B premium. |
| 2. Medical and hospital copays | Primary care, specialist visits, hospital stays, tests, and other services used. Note specialist copays in particular. |
| 3. Annual out-of-pocket maximum | The plan’s limit for covered Part A and Part B services. Drug costs generally are not included. Check the plan’s Summary of Benefits and Coverage for its applicable limits and rules. |
| 4. Prescription drug terms | Drug deductible, formulary tiers, restrictions, and the cost of each medication. Confirm that each prescription remains covered. |
| 5. Provider and pharmacy network | The specific doctors, hospitals, and pharmacy used. Confirm 2027 network status; directory entries may be outdated. |
| 6. Supplemental benefits | Dental, vision, over-the-counter, transportation, and Part B reimbursement allowances. Compare actual dollar amounts and terms, not only “up to” figures. |
| 7. Coverage exclusions | Services or benefits that moved from covered to not covered, or that now have new limits or conditions. |
Read plan documents alongside the ANOC. The ANOC summarizes changes, but it may not provide every detail needed to estimate costs for a particular service or prescription.
VERIFY DOCTORS AND FACILITIES DIRECTLY
Online directories and plan comparison listings can be incorrect or out of date. A provider’s participation may also depend on the exact plan and network. Do not rely only on a general search result or a 2026 listing when assessing 2027 coverage.
Use this verification process for each key provider:
- Call the provider’s office. Name the exact 2027 plan and its network type, such as HMO or PPO.
- Ask whether the specific doctor and the specific office location are in-network for 2027. Confirm the year explicitly.
- Record the date of the call and the representative’s name or department.
- Contact the plan and request written confirmation of network status for the doctors and facilities that matter.
- Save the ANOC, plan documents, call notes, and any written responses.
Use the Medicare Plan Finder to compare plans, costs, benefits, providers, and drug coverage. If Plan Finder displayed incorrect provider information and a person enrolled in reliance on it, a Special Election Period may be available to change plans outside standard deadlines. This is not automatic. Contact 1-800-MEDICARE to verify the situation before relying on that option.
EXAMPLE: A 71-YEAR-OLD WITH A CARDIOLOGIST AND DENTAL NEEDS
Consider a 71-year-old whose 2027 plan appears less expensive at first glance. She sees a cardiologist and has a $2,000 dental allowance in 2026. Her 2027 ANOC lists a lower plan premium, a $1,000 dental allowance, and a changed specialist copay.
The first comparison is straightforward: the national average premium reduction is about $28 a year. Her actual plan premium may change by a different amount, so she should use the figure in her ANOC rather than the national average.
Next, she should check the dental benefit terms. If the 2027 allowance is $1,000 and she expects eligible dental treatment, she should ask the plan how the allowance applies to that care, including any service limits, coinsurance, network rules, or waiting periods. A lower allowance does not automatically translate into an identical increase in every person’s bill, but it can materially affect costs when the benefit is used.
She should then confirm that her cardiologist, the correct office location, and any associated hospital or testing facility are in-network for the exact 2027 plan. She should compare the new specialist copay and review her medication coverage, pharmacy, deductible, and formulary tiers. Finally, she should check the plan’s out-of-pocket maximum and read the Summary of Benefits and Coverage for applicable limits.
The next step is a plan-by-plan estimate based on her actual visits, prescriptions, and expected dental use, not the premium alone. Provider status and benefit details should be confirmed directly with the office and plan.
IF A PLAN IS DISCONTINUED
A plan being discontinued is different from a plan changing its cost-sharing or benefits. If a plan is leaving Medicare or no longer covers a person’s area, qualifying circumstances may provide a guaranteed issue right to switch to Original Medicare and buy certain Medigap coverage without medical underwriting.
The application timing is important. Medicare says eligible people generally can apply beginning 60 days before Medicare Advantage coverage ends and no later than 63 days after it ends. The right depends on the specific situation and federal or state rules. The Medicare.gov guidance on when Medigap can be purchased describes the applicable circumstances.
Medigap has a separate premium. A person switching to Original Medicare may also need a separate Part D plan for prescription drug coverage. Outside a guaranteed-issue right or another protected enrollment period, federal rules may not require an insurer to sell a Medigap policy. State protections may differ. Confirm eligibility and deadlines with Medicare or the state insurance department.
WHAT THE PREMIUM CHANGE DOES NOT SHOW
Lower Medicare Advantage premiums do not, by themselves, mean total health care costs have fallen. Part B premiums are generally paid in addition to any Medicare Advantage plan premium. Copays, deductibles, prescription costs, and supplemental benefit changes also affect spending.
CMS’s September 28 announcement describes Medicare Advantage and prescription drug programs as expected to remain stable in 2027 and reports the projected average premium decline. That government-wide framing and reports of plan-level increases in particular out-of-pocket costs can both be true. National averages do not describe every plan or enrollee.
COMPARISON SUPPORT
Choosing a plan is separate from selecting a licensed professional to help review options. Consumers researching licensed Medicare agents by state can use the VerifiedAgent directory as a starting point. A directory listing is not proof of current licensure. License status should be confirmed with the relevant state insurance department.
The December 7 deadline applies to Medicare Open Enrollment for 2027 coverage. Before making a selection, compare the ANOC, plan documents, provider network, prescriptions, and expected use of benefits. Plan terms and current provider participation should be independently confirmed.