10/15/2026
The annual Medicare Open Enrollment period is here!
Whether you are completely new to Medicare or looking to optimize your current coverage for 2027, taking time to review your options now can save you money and time next year and ensure you have the coverage you need.
To help you navigate your options, the expert patient advocates at PAF have put together five essential tips for this enrollment season – with expanded resources to accompany each one.
1. Learn the lingo
Out-of-pocket costs hit your wallet differently depending on whether they are premiums, deductibles, coinsurance, or copays. Understanding how these terms impact your budget is the first step to choosing the right plan.
2. Know your plan options
Original Medicare includes Part A (hospital) and Part B (medical). If you stick with Original Medicare, you will need a standalone Part D plan for medications, and you may want a supplemental Medigap policy to cover out-of-pocket gaps. Alternatively, you can choose a Medicare Advantage plan, which may offer additional benefits but may also come with network restrictions.
3. Don’t forget your medications
With original Medicare and some Medicare Advantage plans, you’ll still need a Part D drug plan. Before choosing, make a complete list of your current medications and verify that they are included in the plan's specific "formulary" (list of covered drugs). Look out for restrictions like prior authorizations.
4. Know your limits
In 2027, the annual out-of-pocket limit for covered Part D prescription drugs is $2,400, compared to $2100 in 2026. Once you reach the limit, you will not pay additional out-of-pocket costs for covered Part D medications for the rest of the year. There is also a $35 cap on covered insulin products.
5. Consider a Prescription Payment Plan
If you face high upfront costs at the pharmacy, the Medicare Prescription Payment Plan may be right for you. This voluntary program allows you to spread your out-of-pocket Part D drug costs over predictable monthly bills throughout the year. While it doesn't lower your total costs, it can significantly help your monthly cash flow.
Learn more here:
Read our guides to health plan open enrollment. Learn how to review your health insurance coverage and enroll in a plan for the coming year.
