What to consider as Medicare open enrollment kicks off

Over the years, I've found that many retirees are surprised by how much Medicare coverage can change from one year to the next. That's why I encourage clients to view Medicare Open Enrollment as an annual check-in, rather than something they can simply put on autopilot.

Open Enrollment runs from October 15 through December 7, and the decisions you make, or don't make, during that window will determine your Medicare coverage for all of 2027.1 Even if your current plan has served you well, it's worth taking a fresh look each year. Healthcare costs, provider networks and prescription drug coverage can change annually, and a plan that fits your needs in 2026 may not be the best fit in 2027. Taking the time to review your options now can help ensure your coverage continues to match your needs, lifestyle and budget.

Start with These Four Questions

Are you paying the right price? Healthcare costs continue to rise, and Medicare plans are no exception. It's worth comparing your current premiums, deductibles and copays against what's available for next year. I've seen retirees save hundreds of dollars annually simply by reviewing their options instead of letting their coverage automatically renew. What looks like a small difference each month can add up over the course of a year.

Can you still see the doctors you trust? If you have established relationships with healthcare providers you trust, it is important to check if those doctors are still included in your plan’s network. Physicians move practices, health systems and locations and network participation can shift from year to year. It’s better to determine if your doctors are covered by your plan before you need to visit them.

Are there any supplemental benefits you're missing? Coverage for dental, vision, hearing care and wellness programs can vary significantly between plans. If there are any benefits you'd use but don't currently have, Open Enrollment gives you an opportunity to explore alternatives that may provide more value.

Is your prescription drug plan meeting your needs? It's not just about the premium. Look closely at the medications you currently take and any you might reasonably expect to need in the next year. Drug formularies change annually, and I've seen people stay in the same plan for years only to realize they're paying far more than necessary for medications they take every month.

One Change Worth Watching for 2027

A federal program that has helped keep Medicare Part D premiums lower for many beneficiaries appears to be winding down.2 While the exact impact will vary by plan and location, some retirees could see higher prescription drug coverage costs in 2027 as insurers adjust to changing funding levels.

For that reason alone, this year’s Open Enrollment may deserve a closer look. Even if you've been satisfied with your current coverage, reviewing your options could help you avoid unexpected cost increases and identify coverage that better fits your needs.

Don't Let the Deadline Sneak Up on You

Reviewing Medicare coverage isn't something most people can do in a few minutes, and it's easy to put off. But the earlier you start, the more clearly you can weigh your options without the pressure of a looming deadline. A financial advisor can help you navigate the tradeoffs, understand potential costs and align your healthcare decisions with your overall retirement goals.

‍

A resident of Catskill, Michael D. Lanuto, CRPC®, is a Financial Advisor with S.M. Miller & Associates, a private wealth advisory practice of Ameriprise Financial Services, LLC.