Medicare Advantage Plans Changes 2027

Key Takeaways

• CMS finalized a 2.48% average payment increase to Medicare Advantage plans for 2027, worth over $13 billion.
• Humana is discontinuing plans covering roughly 600,000 members, with non-renewal letters dated October 2, 2026.
• You can no longer self-certify for special supplemental benefits for the chronically ill. Plans must publish objective eligibility criteria.
• The Part D deductible rises to $700 and the out-of-pocket cap to $2,400, which applies to Medicare Advantage drug coverage too.
• Star Ratings methodology is largely unchanged for 2027. The 11 measure removals start with the 2028 and 2029 ratings.
• Plan-specific 2027 details are not public until October 1, 2026. Enrollment runs October 15 to December 7.

⚑What is not confirmed yet

Individual plan premiums, deductibles, supplemental benefit amounts, provider networks and drug formularies for 2027 are all carrier decisions and none of them are public until October 1, 2026. Specific 2027 benefits depend on the plan and your area, and not every plan offers every benefit. Treat anything you read about a particular plan before October 1 as an estimate.

What this argues for 2027

Less pressure to cut supplemental benefits than in the last two cycles. It is not a guarantee — carriers may still trim dental, vision, hearing or over-the-counter allowances depending on the plan and the market — but the financial case for deep cuts is weaker than it was a year ago.

What it does not change

Carriers continue to exit counties where their own economics do not work, regardless of the national average. The Humana non-renewals are the clearest example: the largest single announced exit for 2027, in a year of rising payment. If you hold a Humana plan, read which Humana plans are ending in 2027 to confirm whether yours is affected.

Self-attestation is over

Plans must now use objective criteria to decide who qualifies for these benefits. You cannot simply attest that you have a qualifying condition. Plans must also publicly post their eligibility criteria, so you can check before you enroll rather than after you are denied.

Debit cards must come with full disclosure

If a plan issues a benefit card for groceries, over-the-counter items or utilities, it must disclose every condition attached to it and every eligible item. It must also maintain an alternative reimbursement mechanism for when the card does not work at the register.

What CMS chose not to do

CMS proposed but did not finalize a ban on marketing the dollar value of supplemental benefits including debit cards. It also declined to remove the pathway that lets Dual Eligible Special Needs Plans offer supplemental benefits. Both stay as they are for 2027.

A $0 premium plan is not free

The $0 refers only to what the insurer charges. You still pay your Medicare Part B premium every month, and that is the larger of the two numbers by a wide margin. Higher earners also pay IRMAA surcharges on both Part B and Part D, billed by Social Security rather than by the plan.

1Watch for a letter in early October

If your plan is not being renewed, the carrier must tell you in writing by early October 2026. Humana’s letters are dated October 2. A non-renewal letter changes your whole timeline and gives you a Special Enrollment Period running through the end of February.

2Read your Annual Notice of Change

The ANOC arrives by late September and is the only document that tells you exactly how your own plan is different in 2027 — premium, cost sharing, benefit amounts, network. National averages tell you nothing about your specific plan. This does.

3Check supplemental benefit eligibility before enrolling

Because plans must now publish objective criteria for chronic-illness benefits, you can verify whether you actually qualify before you pick a plan on the strength of a grocery allowance or flex card. Do that rather than assuming.

4Compare in your own county from October 1

That is when 2027 plan details go public. Enrollment opens October 15 and closes December 7. Start from Medicare Advantage plans 2027 for what is available, and see Medicare open enrollment 2027 for the full calendar.

➤  What are the biggest Medicare Advantage plans changes for 2027?

Three stand out. CMS finalized a 2.48% average payment increase to plans, worth over $13 billion. Humana is discontinuing plans covering roughly 600,000 members. And special supplemental benefits for the chronically ill now require objective eligibility criteria rather than self-attestation, with plans required to publish those criteria.

➤  Are Medicare Advantage benefits being cut in 2027?

Benefit amounts are individual plan decisions and are not public until October 1, 2026, so nobody can tell you that yet for a specific plan. What is known is that plans are being paid 2.48% more in 2027 after two years of tighter payment, which reduces the financial pressure to cut. That is not a guarantee, and benefits may still change depending on the plan and your area.

➤  When will 2027 Medicare Advantage plan details be available?

October 1, 2026. That is when carriers may publish 2027 premiums, benefits, provider networks and drug formularies. Enrollment opens two weeks later on October 15 and closes December 7, with coverage starting January 1, 2027.

➤  Why are plans leaving if Medicare Advantage payment is going up?

The 2.48% is a national average across the entire market, not a payment to any specific plan in any specific county. Carriers make county-level decisions based on their own costs and enrollment. A plan can be discontinued in your area during a year when the industry as a whole receives more money.

➤  What is changing with flex cards and grocery allowances in 2027?

Two things. You can no longer self-certify that you have a qualifying chronic condition, and plans must publish objective eligibility criteria you can check before enrolling. Separately, plans issuing benefit debit cards must disclose every condition and eligible item and must keep an alternative reimbursement route if the card fails at the register. Dollar amounts remain individual plan decisions published October 1.

➤  Are Medicare Advantage Star Ratings changing for 2027?

Not meaningfully. CMS finalized the removal of 11 measures, but those take effect with the 2029 Star Ratings, and two of them with the 2028 ratings. For 2027 the changes are limited to disaster adjustment eligibility and non-substantive specification updates. The star rating you see this October is comparable to last year’s.

➤  How do the 2027 Part D changes affect my Medicare Advantage plan?

If your Medicare Advantage plan includes drug coverage, the Part D rules apply to it. The standard deductible rises to $700 and the annual out-of-pocket cap to $2,400 for 2027. Your plan may set a lower deductible but cannot exceed the maximum, and once you hit $2,400 in out-of-pocket drug spending you pay nothing more for covered drugs that year.

➤  What should I do if my Medicare Advantage plan is discontinued for 2027?

Your carrier must notify you in writing by early October 2026. A discontinued plan triggers a Special Enrollment Period running from December 8 through the end of February, on top of the standard October 15 to December 7 window. Acting during the fall window is cleaner because it gives you an uninterrupted January 1 start.