Be Prepared for Medical Insurance Costs in 2027

By Christian Regalado 

For those who are on Medicare, November is a very important month.  We’re now in the middle of the Annual Enrollment Period that started October 15 and ends December 7.  During this period, those enrolled in a Medicare Advantage plan or Prescription Drug Plan have the opportunity to renew their plan or make a change for 2027. In years past, most people just allowed their Advantage plans to renew; the same was true for those on prescription drug plans.  This year is different.

I have noticed a trend where more of my clients with Medicare Advantage plans are inquiring about switching to a Medicare Supplement aka Medigap plan.  Advantage plans continue to offer a good value at low cost, but that value is not like it used to be.  PPO plans, which offer a larger network of care options, are getting the biggest hit in the market.   Supplement plans offer the best medical protection. You have a higher upfront cost to get lower costs when you receive care. You also have the largest network of care in the country.  The higher premium may feel worth it when medical needs change and more care is needed. Just remember, these plans do not include prescriptions or Dental.

Historically, Supplement plan rate increases were fairly stable.  Unfortunately, that changed with Covid. This is a major concern with recent double-digit rate increases over the last few years and projected increases in the future. Additionally, underwriting requirements will keep those in need of more medical care out of Supplement plans unless a Guaranteed Issuance (GI) is triggered.

Since a number of plans, especially PPO plans, were discontinued for 2027 there are quite a few seniors who have to shop for a new plan.  If your Advantage Plan was discontinued, a GI was triggered, and not only can you choose a new Advantage plan, if you want to switch back to original Medicare and add a Supplement plan, you can get a Guaranteed Issue (usually to a Plan G or F). This means you can enroll in a plan without needing to pass medical underwriting.  This typically only applies when you first enroll in Medicare Part B.  However, if your Advantage plan is cancelled, you have a new opportunity.

If you are planning on sticking with Advantage, your lowest cost options are  HMOs.  If you choose an HMO, be sure you are comfortable with the providers that are in the network, as you will not be covered outside of it.  This includes Dental, Vision, and Urgent Care.

If you are choosing a PPO, be sure you are familiar with the in and out network and the higher costs that will be applied when you see out-of-network providers.  All PPO plan costs have gone up for 2027. Many of the benefits have been reduced, and some prescription costs have gone up.

For those not yet ready for Medicare, usually under the age of 65, November 1, was the beginning of the Open Enrollment Period on Marketplace plans where folks can enroll in an ACA plan for 2027.  Choosing the best plan will require balancing the importance of cost and provider network. However, there are some good strategies you can ask me about.

This is a year to speak with an insurance broker to help you decide which plan works best for you.  There is no cost for our services and a little advice can go a long way to help secure your health and save money. Come see me in Santa Rosa Beach or give me a call. I meet many people in person and over the phone. I’m always happy to help.

Reach me, Christian Regalado by phone at (850) 687-7606 or email me at christian@30ahealthins.com.