Story perspectives

Medicare 2027 Changes Raise Premiums, Cut Coverage Options

By Drooid · Oct 20, 2026, 5:13 PM UTC · How we work

Summary

CMS Raises Medicare Costs

CMS forecasts a 3.25% increase in Medicare Part B premiums for 2027.
CMS will raise the Part D annual out-of-pocket cap to $2,400 and deductible to $700.
U.S. President Donald Trump’s administration will end the temporary Part D premium subsidy, likely raising drug costs.
Minnesota officials warn 392,000 residents may lose Medicare Advantage coverage in 2027.

Summary

Iowa SHIIP-SMP Alerts

Iowa's SHIIP-SMP warns 87,000 Medicare beneficiaries that their 2027 plans will be cancelled.
Director Kristin Griffith urges beneficiaries to read plan mail and use guaranteed-issue rights to switch to Original Medicare.
Open enrollment runs Oct. 15–Dec. 7, with a Dec. 31 deadline to avoid coverage gaps.
Beneficiaries may enroll in new plans or switch to Original Medicare with Medigap without underwriting.

History

Historical Context

President Bill Clinton signed the 1997 Medicare Prescription Drug, Improvement, and Modernization Act, which created voluntary Part D coverage that began in 2006 and barred Medicare from negotiating drug prices. The 2022 Inflation Reduction Act later lifted that ban, allowing negotiations from 2026. In 2027 CMS proposes a Part B premium hike, reviving the act’s funding disputes.

1 of 3

CMS Raises Medicare Costs

CMS forecasts a 3.25% increase in Medicare Part B premiums for 2027.
CMS will raise the Part D annual out-of-pocket cap to $2,400 and deductible to $700.
U.S. President Donald Trump’s administration will end the temporary Part D premium subsidy, likely raising drug costs.
Minnesota officials warn 392,000 residents may lose Medicare Advantage coverage in 2027.

1 / 3